Australian LEO satellite spending to hit A$664m in 2026

The Australian market for low Earth orbit (LEO) satellite communications services is set to become a mainstream enterprise technology, with end-user spending expected to reach A$664m in 2026, according to new research from Gartner.

The analyst firm predicts this figure will represent a 6.6% increase from the A$622m expected to be spent in 2025, driven by the emergence of new business and consumer applications that go beyond simple remote connectivity.

“Leo satellites have primarily delivered broadband connectivity to remote locations where traditional networks don’t reach,” said Khurram Shahzad, senior director analyst at Gartner. “However, new consumer and business use cases are emerging, driving telecommunication providers to expand the market. This is enabling LEO satellites to become a mainstream enterprise broadband technology.”

LEO satellites operate much closer to Earth than traditional geostationary satellites, providing significantly faster connection speeds and lower latency. This performance allows them to deliver high-speed broadband and act as a viable complement to terrestrial networks. The global market is now in a phase of rapid expansion, with over 20 active service providers and over 40,000 satellites expected to be in orbit within the next few years.

While overall spending is growing, the most significant expansion in Australia will be in internet of things (IoT) connectivity, which is forecast to grow by 33.5% in 2026. This is followed by strong growth in services for the maritime and aviation sectors at 10.1%, and for network resilience improvement at 4.5%.

“As use cases continue to grow, companies and consumers can expect consistent internet access and IoT sensing anywhere, without being limited by location,” Shahzad said. “Even airplanes, ships and sea platforms will benefit from new means of network resiliency and a ubiquitous internet.”

Gartner has identified areas where emerging uses of Leo satellites are taking hold. A primary application is fixed and mobile broadband, providing essential connectivity to remote sites, temporary locations like construction projects, and mobile platforms such as ships and aircraft.

LEO services are also being used for emergency response communications and as a backup to improve the resilience of traditional broadband. For example, some US airlines are now offering free high-speed Wi-Fi to passengers using LEO satellite services.

The technology is also proving critical for infrastructure backhaul. Telecoms providers and enterprises with geographically dispersed operations can use LEO satellites for reliable, high-bandwidth connectivity, independent of terrestrial limitations. In 2024, Australia saw the world’s largest rollout of LEO cellular backhaul, aimed at improving real-time voice and video calling for remote mobile customers.

Another key growth area is supplementing existing mobile broadband services. LEO technology can provide seamless coverage through direct-to-device (D2D) connections and integration with 5G non-terrestrial networks. Two major Australian telecoms providers have already announced satellite-to-mobile services to help customers in regional and remote areas with patchy mobile reception.

Finally, LEO satellites can complement or replace traditional IoT networks for applications that require global coverage, such as asset tracking, agriculture, logistics and military sensing. One Chinese automaker has launched 20 LEO satellites to improve navigation for its autonomous vehicles, with plans for a full constellation of 240 satellites.

Despite the growing use of LEO satellites, Shahzad cautioned that the industry remains nascent with various limitations, including regulatory barriers in some countries and capacity constraints in certain areas. “LEO services can also encounter roaming restrictions, lack interoperability and aren’t certified for all mission-critical maritime needs. It’s important for telcos to assess strategies on a use case basis,” he said.