Forecast: LEO constellations to drive $12.9bn optical comms market by 2035
May 18, 2026
The third edition of Novaspace’s Optical Communications Market report forecasts cumulative global revenues for space-based Laser Communication Terminals (LCTs) to reach $12.9 billion (€11.1bn) through 2035, driven overwhelmingly by LEO constellations, which will account for more than 99 per cent of demand.
“As constellations scale and operators seek to reduce reliance on extensive ground infrastructure, optical communications provide the high-capacity, efficient data transfer needed to maintain seamless connectivity,” commented Rami Ibrahim.
LCTs are rapidly transitioning from emerging technology to a core component of next-generation satellite networks. The total number of terminals in orbit is projected to reach 118,000 units by 2035. Closed markets – where LCTs are developed in-house – are expected to represent 74 per cent of total market value (2026–2035), with open markets accounting for the remaining 26%.
Growth in space-based optical links is being matched by expansion on the ground. The number of Optical Ground Segment (OGS) assets is projected to grow at a 31.3 per cent CAGR, surpassing 830 units by 2035, with cumulative OGS revenues reaching $774 million over the same period.
The continued expansion of NGSO constellations and data-intensive applications, particularly in Earth observation, is accelerating deployment. Large-scale satellite operators and mega-constellations are expected to be the primary drivers of OGS market growth and scaling.
“As optical links move from niche deployments to a core capability, execution will be critical,” added Ibrahim. “Adopting optical communications is becoming essential to future-proof satellite networks and position operators for sustained value creation in an increasingly data-driven market.”
Other posts by :
- Analyst: Years of subs growth ahead for Starlink
- SES CEO: “Multi-orbit is now key”
- More details emerge on SpaceX IPO
- Viasat confident despite SpaceX threats
- Blue Origin launch pad destroyed
- AST SpaceMobile’s story “more than hype”
- Musk to merge Tesla with SpaceX?
- AST SpaceMobile aiming for 15-year satellite life?
- SpaceX still targets intercontinental travel