Energy Sector Demand Strong for Traditional Satellite Capacity
New NSR Report Finds Legacy Capacity Remains Solid on Eve of HTS Introduction for Energy Markets
Wilmington, DE & London, UK – April 22, 2014 – NSR’s Energy Markets via Satellite, 4th Edition report finds that traditional Fixed Satellite Services will remain strong – even as more capacity through High-Throughput Satellites (HTS) becomes available across the energy market. Although Mbps delivered to energy customers over HTS will surpass traditional FSS capacity by 2023, the demand for traditional C-band and Ku-band services will continue to grow.
“Strong inertia remains with traditional FSS capacity in the energy markets – from extensive investments in ground infrastructure, to a proven history of delivering highly reliable services into areas currently experiencing an exploration boom such as Latin America and Asia-Pacific. Simultaneously, service providers are increasing FSS capacity leases, and satellite operators are expanding coverage and capacity,” states Brad Grady, Senior Analyst with NSR. “It is not an either-or proposition for end-users to choose FSS or HTS, but a combination to enable high comfort and reliability for mission critical applications, while delivering cost-effective services such as video-streaming for crew welfare.”
With almost 80% of satellite bandwidth demand over the next ten years from O&G Exploration and Production, Mbps delivered over geostationary HTS will exceed FSS C-band by 2019 and FSS Ku-band by 2022. Although In-service Units for the Utility industry will account for the more than double the combined O&G and Mining verticals, the satellite bandwidth demand for Utility Generation and Transmission & Distribution networks will be less than 2%.
Driven by the Exploration & Production markets, the Energy Markets will generate over $2.8 Billion in retail revenues from almost 500,000 In-service satellite units by 2023. From remote O&G sites, to enabling the latest advances in mining automation, to connecting the next-generation of electricity generation, the energy markets will remain a strong opportunity for the satellite communications industry through 2023.
About the Report
NSR’s Energy Markets via Satellite, 4th Edition continues to bring NSR’s detailed analysis of the satellite communications industry to the Oil & Gas, Mining, and Utility verticals. With industry-leading analysis, the report provides readers a complete, detailed, must-have view into the unique characteristics of the energy industry – and where the opportunities exist today and into the future for satellite communications services.
For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com or call NSR at +1- 302-295-4981.
NSR is a leading international market research and consulting firm with a core focus on the satellite sector and related industries. Founded in 2000 and with an experienced group of analysts located 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.