Northern Sky Research

NSR’s Satellite Capacity Study Finds HTS Essential as Traditional FSS Faces Challenges

Mon 13, Jul 2015

Study Projects 3 Tbps of HTS Demand by 2024 across GEO, MEO and LEO Orbits

Cambridge, MANSR’s Global Satellite Capacity Supply & Demand, 12th Edition report, released today, projects demand for more than 7,700 transponders of traditional C-, Ku-, and widebeam Ka-band FSS capacity globally by 2024. NSR also forecasts over 3 Terabits of GEO-HTS, MEO-HTS, and LEO-HTS bandwidth demand, across a series of applications ranging from data to broadband access to mobility. With growth slowing and prices declining in traditional FSS markets, NSR expects a CAGR of less than 2% for traditional FSS demand; new markets will therefore need to be tapped and new possibilities unlocked through increased bandwidth efficiencies and lower cost per bit in order to fuel organic market expansion.

From a supply perspective, NSR expects C-band additions to slow to under 100 transponders annually in the next few years. Ku-band supply, on the back of video applications, will see more than 1,700 transponders added cumulatively by the end of the decade, but slow down thereafter. Most operators have leapfrogged to Ka-band GEO-HTS where there is enough spectrum, and tens of Gigabits are being added every year. “More than 2.7 Terabits of GEO-HTS supply will be available by 2024, of which more than 80% will be Ka-band,” notes Prashant Butani, Senior Analyst at NSR and co-author of the report. “In a few years, HTS will be to data traffic what widebeam Ku-band is to video applications today – the workhorse bandwidth with growing competition lowering the cost of access.” Non-GEO HTS systems are limited to MEO today, but NSR expects that even if one or two LEO constellations deploy, there would be Terabits of supply flooding the market at a much lower price per bit.

From a demand perspective, traditional FSS markets will provide solid cash flow due to legacy contracts, while organic demand is expected to be fairly weak at around 1.7% per year. This corresponds to just over 1,200 transponders of new demand for C-, Ku-, and widebeam Ka-band capacity annual growth until 2024. GEO-HTS applications will see formidable demand gains of nearly 25% annually, but the biggest wildcard will certainly be the launch of a potential LEO-HTS constellation. “GEO-HTS will definitely present opportunities. With all investment by the big players going into GEO-HTS systems, we expect over 1.5 Tbps of GEO-HTS demand by 2024, with 20% of demand coming from much higher-margin “non-Broadband” applications”, says Blaine Curcio, Senior Analyst and report co-author. “That said, there is potential for significant market disruptions moving forward, particularly after the 2018/2019 timeframe.” Overall, the study finds that despite flat to falling prices for capacity, the industry will “expand the pie” of addressable demand and propel 4% revenue growth per year to 2024.

The 12th Edition of NSR’s Global Satellite Capacity Supply & Demand study continues more than a decade of in-depth and highly detailed assessments of commercial satellite capacity supply and demand analysis, as well as introducing many industry firsts, such as this year’s inclusion of HTS capacity split by frequency band, Non GEO-HTS constellation analysis, and complete coverage of the High Throughput Satellite market for which NSR has pioneered research efforts for half a decade.

About the Report

The Global Satellite Capacity Supply & Demand, 12th Edition provides a wealth of data and analysis from the very top line global trends to highly detailed and granular assessments of supply and demand trends for eight separate applications in each of seven different types of capacity (C-band, Ku-band, widebeam Ka-band, HTS C-band, HTS Ku-band, HTS Ka-band, Non GEO-HTS) for thirteen individual regions. Supplemented by over 500 tables and charts within the integral client Excel data sheets, the report provides the most comprehensive and detailed data and analysis available to the industry. Also included is an industry-first Webinar Document that summarizes all key elements of the report in a presentation format with audio commentary from the authors of the report. NSR led the industry in introducing the assessment and forecasting of commercial services using High Throughput Satellite (HTS) and Non GEO-High Throughput Satellites (Non GEO-HTS) capacity as well as being one of the first to make specific projections for growth in UltraHD and 3D channels within the video distribution and DTH markets.

About NSR

NSR is one of the top international market research and consulting firms with a core focus on the satellite sector and related industries. Founded in 2000, NSR’s analysts have a combined 150 years of industry experience and are locally based in all regions. NSR specializes in analysis of growth opportunities across four core sectors: Satellite Communications, Broadcasting & Digital Media, Hybrid & Emerging Applications and Commercial Space, providing unparalleled market insight for global clients across the value chain.

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