The Great Voyage of the Space Economy: LEO Satellites and the New Battlefield of Commercial Applications
Over the next decade, LEO satellites will redefine global connectivity and digital infrastructure. Space is no longer just for scientific exploration; it has become the new strategic high ground for national resilience and commercial competition.
3 Key Takeaways
- Infrastructure Shift: Low Earth Orbit (LEO) satellites are pushing the space industry from scientific exploration to commercial competition. The global space economy is projected to exceed $1.8 trillion by 2035.
- Communication Disruption: Direct-to-Cell technology breaks terrestrial limitations. LEO satellite constellations are becoming key infrastructures for the next-generation digital economy and the new frontier in global telecommunications competition.
- Geopolitics and Resilience: Space has become a new battlefield for national sovereignty and digital resilience. Taiwan should leverage its ICT advantages to participate in the next-generation communication ecosystem, from ground terminals to satellites.
If the internet revolution of the past twenty years changed how information flows, then the next ten years of Low Earth Orbit (LEO) satellites are likely to redefine the landscape of global connectivity, data flow, and digital infrastructure.
For a long time, the space industry was viewed as a high-barrier, high-risk sector heavily dependent on government budgets. However, as launch costs drop, small satellite technology matures, and commercial capital floods in, the space industry is gradually transforming from state-led scientific research into a new market for global corporate competition. According to industry research cited by the World Economic Forum, the global space economy reached approximately $613 billion in 2024 and is expected to exceed $1.8 trillion by 2035.
It is worth noting that the primary driver of this growth is not the rockets themselves, nor lunar missions, but the new type of infrastructure economy forming around LEO satellites.
LEO Satellites: From Scientific Projects to Commercial Infrastructure
Over the past few decades, satellite communications relied mostly on Geostationary Earth Orbit (GEO) satellites. These satellites sit about 36,000 kilometers from Earth. While they offer wide coverage, they suffer from high latency and high costs, making it difficult to meet real-time communication needs.
LEO satellites, on the other hand, operate at altitudes between hundreds and two thousand kilometers. Not only do they significantly reduce latency, but by forming constellations of numerous satellites, they can offer a user experience comparable to terrestrial networks. The significance of this technological leap extends far beyond just faster communication speeds.
The Battle for Infrastructure Dominance
From a commercial perspective, LEO satellites are becoming the new infrastructure of the global digital economy. For airlines, it means more stable in-flight internet; for the shipping industry, it provides real-time transoceanic connectivity; for remote regions, it solves the prohibitive costs of building traditional cell towers; and for governments, it serves as a critical tool for disaster response, border monitoring, and national defense resilience.
One order of magnitude closer, and the industry’s logic changes
| Orbit | Orbital altitude | What it buys, what it costs | What deployment looks like |
|---|---|---|---|
| Geostationary orbitGEO | About 36,000 km from Earth. | Wide coverage, but high latency and high cost — poorly suited to real-time communication. | A handful of satellites suffices for coverage; the default architecture for decades. |
| Low Earth orbitLEO | Between a few hundred and 2,000 km — more than an order of magnitude closer. | Latency drops toward terrestrial-network experience; the price is a small footprint per satellite, requiring a full constellation. | Starlink had over 10,000 satellites in orbit by mid-2026, the largest constellation ever built; Amazon’s Project Kuiper plans more than 3,200. |
A New Era of Communication: From Niche Markets to Mass Application
Amazon's Project Kuiper is a telling case study. The project plans to deploy over 3,200 LEO satellites to establish a global high-speed broadband network. Amazon recently announced a partnership with JetBlue to provide next-generation in-flight internet via Kuiper, reflecting how satellite communications are pivoting from niche vertical markets to mass consumer markets.
Another even more representative case is Starlink.
By mid-2026, Starlink had deployed over 10,000 satellites, becoming the world's largest satellite constellation. Its influence has long surpassed the traditional satellite communications market. From the battlefields of Ukraine to the severing of Tonga's submarine cables, and across various natural disaster responses, Starlink has demonstrated not just commercial value, but the vital capability of digital resilience.
Direct-to-Cell Technology: Changing the Rules of the Game
A development commanding even more attention in recent years is the convergence of the satellite and mobile communication industries.
In the past, satellite phones often required specialized terminal equipment, which was expensive and inconvenient. Today, Direct-to-Cell technology is starting to change this market. By connecting regular smartphones directly to LEO satellites, users can send messages and make voice calls in areas without cell tower coverage, and eventually even use data services directly.
TrendForce estimates that the global Direct-to-Cell market will grow by nearly 50% in 2026, reaching a market size of $7.6 billion. The potential impact of this technology could rival the popularization of the smartphone itself.
Blurring Boundaries Between Terrestrial and Space Networks
As satellites gradually integrate into mobile communication networks, the competitive logic of the global telecommunications industry will shift accordingly. Traditional telecom operators previously relied on cell towers and spectrum allocation for their competitive edge; looking ahead, they will need to collaborate with satellite operators to build hybrid network architectures. The boundary between terrestrial and space networks is rapidly blurring.
This is also why market analysis firm Oppenheimer recently revised its long-term forecast for the global space economy significantly upward, arguing that Starlink's impact on traditional telecom markets may soon exceed many people's expectations.
Potential Challenges Behind the Growth: Orbital Congestion and Space Sovereignty
However, the development of the LEO satellite industry is not without its challenges.
First is the issue of orbital congestion.
As tens of thousands of satellites enter low orbits, collision risks, space debris, and orbital management have become topics of global concern. Certain studies indicate that Starlink currently accounts for a significant proportion of close-call collision events in low orbits, prompting regulatory agencies worldwide to gradually tighten related regulations.
Second are space sovereignty and security issues.
In recent years, the EU has advanced the IRIS² constellation project, the US has developed the Starshield military communication system, and China has continuously expanded its national satellite network. Major economies are increasingly realizing that future critical infrastructure won't just exist on the ground, but will extend into orbital space.
The contest is not in orbit; it is in the middle four layers
- Launch and rocketsNot on the opportunity list
Market attention of the past few years concentrated here and on satellite manufacturing, which is why this layer is so often mistaken for the industry itself. Falling launch cost is the precondition for the whole wave — and a problem someone else has already solved.
- Satellite platforms and payload electronicsAdjacent base, new capability needed
As constellations move from hundreds to tens of thousands, a satellite stops being a bespoke instrument and becomes a mass-produced electronic product — a shift that favours supply chains built for volume and quality control, though space-grade qualification still has to be built separately.
- Communications modules and phased-array antennasExisting supply chain maps directly
Existing semiconductor, RF, and networking capability extends here directly. Direct-to-cell service lets ordinary smartphones connect beyond cell coverage, moving the volume from specialist equipment toward consumer electronics.
- Ground terminalsExisting supply chain maps directly
Each satellite corresponds to a great many terminals, so unit volumes here scale disproportionately. Aviation, shipping, remote regions, and disaster response all buy at this layer — the part of the chain that most resembles consumer electronics.
- Network management and edge AIAdjacent base, new capability needed
The boundary between terrestrial and orbital networks is dissolving, and hybrid architectures need someone to manage handover, spectrum, traffic, and faults. Hardware capability transfers; software and long-run operations experience must be accumulated separately.
- Data services and vertical applicationsLargest value, least discussed
Maritime management, logistics, disaster response, border monitoring, defence resilience. Entry barriers are lowest here and value added highest, yet it looks least like “the space industry” — and is therefore the layer most readily assigned to someone else in industrial planning.
Existing ICT supply chain maps directlyAdjacent base, new capability requiredNot currently where the existing chain connects
Attention has long concentrated on rockets and satellite manufacturing — the top two layers. But each satellite corresponds to many ground terminals, every constellation needs someone to manage a hybrid network, and every use case needs someone to turn signal into service. Volume and value added in the middle four layers are not determined by the two in orbit.
The bottom layer deserves particular attention. Data services and vertical applications have the lowest barriers and the highest value added, and look least like “space” — which is why industrial plans hand them to somebody else. The worth of a low-earth constellation does not depend on how high it flies but on how many new connections it creates for activity on the ground; in industrial terms, that means the value sits in the lower four layers.
Source: Impactful Creative, compiled from the low-earth-orbit industry structure, direct-to-cell developments, and ground-segment and application opportunities described in this articleA New Strategic High Ground: Where Are Taiwan's Opportunities?
Viewed through the lens of geopolitics, the LEO satellite industry is reenacting the history of maritime competition and submarine cable development.
Nineteenth-century great power competition revolved around shipping and sea power; twentieth-century critical infrastructures were oil pipelines and submarine cables; entering the twenty-first century, LEO satellite constellations are gradually becoming the new strategic high ground. What nations will compete over in the future is not just the number of satellites, but the ability to control data flows, communication capabilities, navigation services, and digital infrastructure.
Extending Taiwan's Supply Chain Advantages
For Taiwan, this shift holds special significance. Taiwan has long played a crucial role in the global ICT supply chain, possessing deep foundations across semiconductors, servers, and networking equipment.
With the rapid development of the LEO satellite industry, new growth opportunities are emerging in ground terminal equipment, satellite payload electronic systems, communication modules, phased array antennas, AI edge computing, and network management platforms.
More importantly, LEO satellites have gradually evolved from a pure space industry topic into a component of national digital resilience and economic competitiveness. From rural communications, smart logistics, and maritime management to disaster response and national defense, the scope of its application continues to expand.
Focusing on the Investment Value of the Complete Ecosystem
From an investor's point of view, what is truly worth watching isn't merely the next SpaceX, but the complete industrial ecosystem forming around LEO satellites. Over the past few years, market focus has often centered on rockets and satellite manufacturers; over the next decade, the larger value will likely derive from data services, satellite communications, ground equipment, AI analysis platforms, and various vertical application markets.
The Age of Discovery initiated global trade networks, submarine cables connected the modern internet, and LEO satellites are building the next generation of global infrastructure. As tens of thousands of satellites systematically cover the skies above Earth, humanity is competing not just for orbital slots, but for the gateways to the future digital economy and the power to set the rules.
In this new space economy race, the true battlefield is not in space—it lies between terrestrial industries, capital markets, and national strategies. The value of a LEO satellite will no longer depend on how high it flies, but on how many new connections it can create for economic activities back on Earth.
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