2026-02-25
The Low Earth Orbit (LEO) satellite industry is entering a critical phase, transitioning from technical validation to large-scale commercialization. As launch costs fall sharply and 5G/6G standards formally incorporate Non-Terrestrial Networks (NTN), satellite communications have become essential for filling coverage gaps in terrestrial networks and enabling seamless global connectivity. According to MarketsandMarkets, the global LEO satellite market is projected to grow from US$11.8 billion in 2025 to over US$20.6 billion by 2030, representing a compound annual growth rate (CAGR) of 11.9%. Two major engines: satellite manufacturing and launch services, will drive the growth momentum. The surge is not only a commercial competition, but also reflects countries’ strategic deployment in next-generation communications, indicating that LEO satellites have emerged as the most dynamic global technology arena after semiconductors.
The global LEO Satellite industry is evolving along two parallel tracks: U.S.-based giants lead the market, while European players consolidate through mergers and integration. Competition has shifted from mere satellite deployment to service applications and terminal optimization. SpaceX’s Starlink remains in the lead with nearly 7,000 satellites deployed and more than 9 million users worldwide. Its second-generation satellites are accelerating the adoption of Direct-to-Cell technology, reshaping the mobile communications landscape. Amazon is close behind – having completed initial launches and testing for its LEO program in 2025; it plans to launch more than 3,000 satellites targeting enterprise and logistics markets.
Following the merger with the UK-based OneWeb, France’s Eutelsat has adopted a multi-orbit strategy, combining the wide coverage of Geostationary Earth Orbit (GEO) satellites with the low-latency of LEO systems to provide differentiated communications services. Technological innovation is also advancing rapidly: Inter-Satellite Links (ISL) have become a standard for boosting transmission efficiency, and the falling cost of phased array antennas is accelerating the commercial adoption of user terminals. These trends enable a deeper integration between terrestrial base stations and Non-Terrestrial Networks, solidifying LEO satellites as a central pillar of next-generation global communications infrastructure.
Amid a geopolitical push for “trusted supply chains”, Taiwan has leveraged its strong ICT and precision-manufacturing capabilities to secure a critical position within the core supplier networks of major global companies.
Taiwan is also ramping up service deployment. Eutelsat collaborated with Taiwan’s Ministry of Digital Affairs in 2024 to support emergency communications in disaster areas, while Amazon has been actively discussing local deployment with Far EasTone Telecommunications and Chunghwa Telecom. These developments demonstrate Taiwan’s transition from a pure manufacturing base to a strategic partner in international satellite service ecosystems.
Taiwan’s LEO satellite industry chain has expanded beyond ground equipment to space-grade components, laying the foundation for comprehensive system integration capability. Under Space Program Phase III 2.0, led by the Taiwan Space Agency (TASA), the government plans to invest a total of NT$71 billion by 2031 and has set a strategic goal of launching Taiwan’s first domestically developed Beyond 5G (B5G) LEO communications satellite by 2027.
A major milestone was achieved with the successful launch of the Chi Po-lin Satellite in November 2025. This project brought together more than 20 Taiwanese companies, including Rapidtek and Pyras, achieving a domestic content ratio of up to 84%. This accomplishment not only showcases national capabilities in high-resolution optical remote sensing but also establishes critical flight heritage for Taiwan’s local supply chain. It serves as strong proof to the global market that Taiwan possesses the maturity and reliability required to undertake advanced international satellite system development projects.
As the global LEO satellite industry evolves from hardware deployment toward application-driven innovation, Taiwan—anchored by its robust semiconductor and ICT industries—has emerged as a key option for de-risking international supply chains. Moving forward, Taiwan’s priorities will be to seize opportunities for international collaboration, steadily advancing from component manufacturing to subsystem integration, and expand into emerging fields such as the Internet of Things (IoT) and 6G. Through the accumulation of indigenous technologies and deeper partnerships with global players, Taiwan is well-positioned to play a stable, resilient, and strategically significant role in the global space economy.
Source： Industrial Technology Research Institute (ITRI) Industry Service Center Research Team
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