HTS Offerings in Geostationary and Non-Geostationary Orbits to Drive Energy Markets over Next Decade

February 3, 2015

NSR’s Energy Markets via Satellite, 5th Edition report finds that although near-term challenges exist for some segments of the Energy market, the long term opportunities remain strong.  At over $3.8 Billion in retail revenues split between Oil & Gas, Mining, and Utility Markets by 2024 - new capacity, terminal form factors, and the ever-increasing focus on improving productivity of remote operations will drive demand for satellite communications across the Energy Sector.  

“As we see more capacity in new orbits, frequencies and geographic coverage, Energy market end-users are taking note,” stated Brad Grady, Senior Analyst with NSR and author of the report.  End-users and service providers continue to make steps toward ensuring operations on the ground today are ready to accommodate this new wave of connectivity options – from GEO HTS Capacity in C/Ku/Ka frequencies to MEO and LEO High Throughput Satellites.  Leveraging traditional ground equipment in GEO, and new antenna technologies for MEO and LEO, HTS-based services will provide over half of all retail revenue growth across the Energy industry.  This growth is driven by the necessity to improve remote operations while managing satellite connectivity costs.  

Beyond HTS, Mobile Satellite Services – connecting everything from electrical substations to tankers – will account for over 35% of SATCOM terminals by 2024 and 10% of revenue growth.  FSS terminals in C and Ku-bands, connecting the range of throughput demands, will account for nearly 50% of In-service Units, and 40% of revenue growth.  Although 60% of Energy market retail revenue will derive from the Oil & Gas sector; rural electrification and ‘smarter grids’, distributed generation, and automation of mining operations continue to be strong drivers of growth for satellite services.

With more options in space, increased focus on improving operations and managing costs, and a longer time to become familiar with HTS-based systems, NSR expects a stronger focus on these emerging technologies within Energy markets. Yet, the question for end-users and service providers will remain the same as it is today – matching the right combination of services, at the right price, for the right application.