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.
Paris, Washington D.C., Montreal, Yokohama, Sydney, 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.
Euroconsult is now offering a free extract from the report for download, providing a preview into the key market insights available within the full report.
About the Report
Euroconsult’s latest ‘Satellite Connectivity & Video Market’ market intelligence report, now in its 30th edition, is an essential tool for satellite communication players as operators, service providers, suppliers, manufacturers, launchers and investors. It provides an in-depth analysis of the conditions driving demand in the satellite communication market by segment. With both a qualitative and quantitative perspective, it breaks down demand by region, application and system type. This satellite communication report includes historic numbers for capacity supply, capacity leased, service revenue and capacity revenue, and the cost of capacity per unit as well as ten-year projections of these numbers in the future. There is a new market segment in the report: Land Mobility (includes trains, cars, buses, trains, RVs, trucks, emergency/first responders)..
‘Satellite Connectivity & Video Market’ is available now and can be ordered from the Euroconsult shop. https://digital-platform.euroconsult-ec.com/product/satellite-connectivity-and-video-markets-survey/
The Euroconsult Group is the leading global strategy consulting and market intelligence firm specialized in the space sector and satellite enabled verticals. Privately owned and fully independent, we have forty years of experience providing first-class strategic consulting, developing comprehensive market intelligence programs, organizing executive-level annual summits and training programs for the satellite industry. We accompany private companies and government entities in strategic decision making, providing end-to-end consulting services, from project strategy definition to implementation, bringing data-led perspectives on the most critical issues. We help our clients understand their business environment and provide them with the tools they need to make informed decisions and develop their business. The Euroconsult Group is trusted by 1,200 clients in over 60 countries and is headquartered in France, with offices in the U.S., Canada, Japan, Singapore, and Australia. www.euroconsult-ec.com