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talksatellite
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Daily news
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Turbulent Satcom market prepares for
decade of expansion after substantial infrastructure
investments
Satcom revenues and capacity
demand are expected to show significant expansion
over the next decade with key growth opportunities
arising in universal broadband access, mobility
(aero, maritime, land), and defense/security
applications. Fixed Satellite Service (FSS) revenues
are anticipated to rebound as global satellite
capacity supply rapidly increases. In a
competitive and increasingly data-focused market,
vertical integration is crucial for recouping
investments in evolving technology.
September 25, 2023
The satellite communication
landscape is poised for a transformative decade of
growth as satellite capacity demand is projected to
surge from 3.6 Tbps (TeraBytes Per Second) in 2022
to 51 Tbps in 2032, representing a 31% CAGR (compound
annual growth rate), with all data segments
expected to observe exponential growth in the next
10 years.
Euroconsult’s latest ‘Satellite
Connectivity & Video Market’ market
intelligence report unveils three major growth
prospects for the satcom industry: universal
broadband access, mobility (including aero,
maritime, and land mobility), and defense and
security applications. Additionally, Satcom service
revenues are set to rebound starting in 2023
following several years of negative growth, with
revenues predicted to rise from $108 billion in 2023
to $123 billion by 2032, totalling an estimated
$1.15 trillion in cumulative revenues over the next
decade.
Furthermore, the global
satellite capacity supply is on the brink of a
dramatic increase, with a 62% rise in 2022 alone,
reaching 15 Tbps, primarily driven by Starlink.
Anticipated to reach nearly 200 Tbps by 2028, this
expansion coincides with the introduction of new
non-geostationary orbit (NGSO) constellations,
particularly in the low Earth orbit (LEO), including
Telesat Lightspeed and Amazon Kuiper, alongside Gen
2 constellations for Starlink and OneWeb, and Very
High Throughput Satellite (VHTS) deployments like
Viasat-3, Jupiter-3, and Satria-1. Consequently, the
share of NGSO in the total supply is forecasted to
surge from 76% in 2022 to over 95% post-2026.
"The satcom industry finds
itself in a dynamic phase following substantial
investments in satellite infrastructure, presenting
both fresh opportunities and heightened
competition," said Dimitri Buchs, Managing
Consultant at Euroconsult. "The forthcoming wave of
new satellite infrastructure will herald a
transformative era for satellite operators,
necessitating strategies to recoup investments. This
entails a focus on vertical integration to optimize
costs and scale, coupled with value-added services
that enhance proximity to customers and end-users,
alongside a concerted drive toward emerging and
high-growth market segments."
In recent years, satellite
operators have adapted to the shift from a
video-centric market to a more data-focused market,
resulting in substantial investments in network
expansion and service diversification. Consequently,
vertical integration has gained ground in recent
years characterized by the acquisition of service
providers, satellite manufacturing and investments
in user terminals. Market dynamics continue to
evolve, with recent months seeing notable
consolidations, such as the completion of the
Viasat-Inmarsat merger and the Eutelsat-OneWeb
merger soon expected to be approved.
New satellite technology is
acting as a catalyst for improved economics,
including lower capacity pricing and the capacity to
provide higher provisioning rates per site and
expanding availability of unlimited data plans.
These advancements will be pivotal in meeting the
burgeoning demand for satellite capacity,
particularly in segments like enterprise networks
with cloud applications and the largely untapped
land mobility market.
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