Legacy GEO operators face significant challenges in competing with Starlink's pricing and capacity, prompting them to innovate at the service level and leverage existing customer relationships.

While Starlink is gaining traction, legacy GEO operators continue to see growth in aviation connectivity, with many aircraft being fitted with GEO terminals to maintain market share.

However, Starlink faces challenges in aviation, including regulatory hurdles and the complexity of installations compared to maritime applications, where it has already achieved substantial uptake.

ABI Research estimates that by the end of 2024, SpaceX will dominate the satellite market, controlling over 63% of active satellites and 67% of the satellite broadband market.

While further consolidation among GEO operators is possible, market analysts believe there remains room for growth for these major players, allowing them to stay relevant in the evolving satellite industry.

Starlink, operated by SpaceX, has emerged as a major competitor in satellite communications, successfully disrupting the market with its affordable and efficient services across aviation, maritime, and consumer broadband sectors.

The impact of Starlink on the in-flight connectivity (IFC) market is underscored by significant aviation deals with major airlines such as United Airlines, Air France, and Qatar Airways.

To further enhance its competitive edge, Starlink plans to launch its V3 satellites within the next two years, which are expected to provide significantly higher capacity.

Despite concerns regarding the capacity limitations of Low Earth Orbit (LEO) satellites compared to Geostationary (GEO) systems, industry analysts recognize that Starlink's recent aviation contracts have shifted market dynamics unexpectedly.

In response to the rising influence of LEO providers like Starlink, traditional GEO operators have formed partnerships, such as Eutelsat-OneWeb and SES-Intelsat, to consolidate their market position.

GEO operators are looking to diversify their services and develop multi-orbit connectivity solutions to meet specific customer needs, despite facing high investment requirements and slow adaptation to new technologies.

The restructuring of the satellite industry is partly a reaction to Starlink's disruptive pricing and business model, which has driven traditional operators to consolidate and create competitive barriers.