June
27,
2017
The
satellite
industry
is
at
the
cusp
of
rapidly
expanding
its
total
addressable
market
and
playing
a
much
more
critical
role
in
the
greater
telecom
ecosystem,
with
changes
brought
about
by
the
lower
cost
per
Mbps
enabled
by
HTS
capacity.
This
is
the
core
finding
of
NSR’s
industry
leading
Global
Satellite
Capacity
Supply
&
Demand,
14th
Edition
(GSCSD14)
study,
released
today.
The
study
provides
analysis
for
both
supply
and
demand,
and
subsequent
leasing
revenues
for
satellite
capacity
moving
forward.
The
study
finds
that
despite
a
decline
of
over
$2
billion
in
annual
FSS
leasing
revenues
(driven
by
both
C-band
and
Ku-band
declines),
the
industry
will
be
redefined
by
the
promise
of
HTS
capacity,
seeing
HTS
revenues
increase
tenfold
from
2016-2026,
culminating
in a
$17
billion
annual
market
by
2026.
In
looking
at
all
planned
and
expected
HTS
launches,
“we
expect
HTS
capacity
to
exceed
17
Tbps
by
2026,
with
around
60%
of
this
capacity
coming
in
the
form
of
one,
or
more,
LEO-HTS
constellations.
GEO-HTS
will
claim
7
Tbps,
with
most
of
this
capacity
coming
on
Ka-band
GEO-HTS
payloads
launched
in
all
regions,”
noted
Blaine
Curcio,
NSR
Principal
Analyst
and
report
author.
“Ultimately,
this
will
expand
the
total
addressable
market
for
satellite,
with
verticals
such
as
wireless
backhaul,
commercial
mobility,
and
consumer
broadband
seeing
exponential
increases
in
demand.
Even
factoring
in a
significantly
lower
price
point
than
today,
there
is
huge
revenue
growth
opportunity,”
adds
Curcio.
The
satellite
industry
will,
moving
forward,
find
itself
in
many
positions
where
growth
will
need
to
be
scalable.
Indeed,
when
launching
satellites
with
tens
of
times
the
throughput
of
previous
satellites,
operators
need
an
effective
way
to
move
much
more
capacity
than
they
were
selling
previously.
“This
will
lead
to
operators
forging
closer
ties
to
telcos,
service
providers,
integrators,
etc.--basically,
companies
who
have
the
infrastructure
to
move
a
lot
of
capacity,”
states
Curcio.
“I
believe
that
SoftBank—one
of
the
world’s
largest
telcos—investing
$1.4
billion
into
OneWeb,
and
the
company’s
subsequent
interest
in
Intelsat,
is
not
the
last
time
we
will
see
a
telco
looking
at a
satellite
operator
as a
strategic
asset
in a
world
increasingly
based
on
global
connectivity.
Though
it
certainly
is a
vote
of
confidence
for
the
industry”,
said
Curcio.
NSR’s
GSCSD14
study
tracks
recent
developments
on
both
the
supply
and
demand
side
of
the
market,
including
funding
for
new
satellites
by
national-level
governments,
and
CAPEX
expansion
plans
of
established
operators,
both
global
and
local.
Segmenting
capacity
among
FSS
C-,
Ku-,
and
Ka-band,
GEO-HTS
C-,
Ku-,
and
Ka-band,
and
Non-GEO-HTS,
NSR’s
study
sheds
light
on
the
markets
most
likely
to
experience
dramatic
expansion
due
to
elasticity
of
demand,
while
also
examining
macro
factors
that
are
causing
some
markets
to
settle
into
stagnant
to
negative
growth.
Finally,
the
study
examines
factors
that
the
industry
must
emphasize
in
order
to
realize
these
growth
rates,
with
technological
change,
new
business
models,
and
competitive
dynamics
being
discussed.
