NSR REPORT: Chaos in Satellite Broadband Ecosystem Spurs Growth
Satellite Broadband Market to Soar Past $189 Billion in Cumulative Revenue in Next Decade
Cambridge, MA – NSR’s VSAT and Broadband Satellite Markets 18th Edition report, released today, forecasts healthy revenues in the next decade with Enterprise VSAT gaining a slight edge over Consumer Broadband, accounting for greater than 50% of total revenues. Backhaul & Trunking will be the key application globally, but broadband to households, consumers, and hotspots will account for healthy demand as well.
The satellite broadband ecosystem is in its transition phase with multiple ongoing parallel developments. “Incumbents extending to new geographies, emergence of GEO/MEO/LEO HTS offerings, entry of new players, innovation in the ground segment, dropping capacity prices, new solution offerings, system upgrades, and new business models; all add to a chaotic, but game-changing, recipe where ecosystem development will lead to market growth,” according to Vivek Suresh, author of the report.
On the capacity demand front, resonating with demand and the falling in-orbit asset cost per Gbps, satellite operators are launching additional capacity globally. As a result, pricing is shifting closer to USD $200/Mbps/month for HTS Ka-band and USD $300/MHz/month for wideband capacity. “Prices are likely to drop further with the influx of VHTS and non-GEO HTS platforms, during the period 2021-2023; unlocking price elasticity across different applications. With falling capacity pricing, it becomes critical for operators to invest in the right strategy for consistent growth,” states Vivek.
Why is satellite broadband so attractive? For one, there is a large potential for Consumer Broadband where satellite services currently cover only 0.63% of the total addressable market. This represents a sustainable and high paced growth opportunity over the long term. However, this market segment is extremely price sensitive, and a uniform ARPU will not be applicable for service penetration across all regions. Operators and service providers will have to execute lower service fees with slim profit margins, especially in the developing regions of Latin America, Middle East/Africa, and Asia. “The key to generating higher service revenues from the Consumer Broadband segment is service scalability. The next generation of HTS, VHTS, and LEO satellites are the major market growth drivers. And, the Enterprise VSAT segment’s healthy ARPU will generate sustainable service revenue growth across multiple applications,” adds Vivek.
About the Report
NSR’s VSAT and Broadband Satellite Markets, 18th Edition is the longest-running industry analysis of the fixed broadband satellite sector, including all key Markets (Fixed Enterprise VSAT, Consumer Broadband), verticals (Retail/Hospitality, Banking, Social Inclusion, Energy, Mil/Gov, Backhaul & Trunking, Direct-to-premises Consumer Broadband and Wi-Fi Hotspots) and regions (NAM, LAM, EU, MEA, ASIA). The study assesses the installed base of sites and subscribers in five regional markets, investigates trends impacting market growth, forecasts service revenues, equipment shipments and revenues, and predicts satellite capacity demand and revenues for each market vertical, region and frequency. Beyond classic C-, Ku- and Ka-band FSS capacity, NSR leads the industry in forecasting use of High Throughput Satellites (HTS) break down into bands (C-, Ku- & Ka-bands) for GEO-HTS systems and assesses the impact of Non-GEO HTS constellations in the Broadband Markets.
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 617-674-7743.
About NSR
NSR is the leading global market research and consulting firm focused on the satellite and space sectors. NSR’s global team, unparalleled coverage and anticipation of trends with a higher degree of confidence and precision than the competition is the cornerstone of all NSR offerings. First to market coverage and a transparent, dependable approach sets NSR apart as the key provider of critical insight to the satellite and space industries. Contact us at info@nsr.com to discuss how we can assist your business.
Companies and Organizations Mentioned in NSR’s VBSM18:
ABS, Advantech Wireless, AfricaOnline, Afrique Telecom, Andesat, Apexsat, Arabsat, As Distriktsnett, AT&T, Atlantique Future Technology, Australian Government, Avanti, Avonline, Axiata, Bambu Wireless, Bangladesh Communication Satellite Company, Brazilian Military, Bulgarian Telecommunications Company, Botswana Telecommunication Corporation, Broadband Systems Corporation, Bharti Airtel, BSNL, Bank BRI, BPCL, Bluetown, Bentley Walker, Burkina Faso, BorderNET, Comtech, Clarus, Centurylink, China Satcom, Canada Radio-Television and Telecommunication Commission, Connect America, Canadian Government, Dalkom Somalia, DataCo, Eutelsat, Eurona, FCC, French Broadband Program, Forsway, Globe, Gilat, General Services Administration, GlobalSat, Gazprom Space Systems, Global Invacom, GPE, Geoscience Australia, Global Technologies, Globecomm, Hughes, Hispasat, Hispamar, HSN, HPCL, iDirect, Intelisys, Invanhoe Mines, Intelsat, iWay Africa, Internet Solutions, IPSTAR, IOCL, JSAT, Leosat, Logical Wireless, LCS Group, MainOne, mu Space, MOTC Myanmar, Masmovil Group, MLNA, MoCIT Sakha, Melcom Electronics, mgi Global Services Limited, Measat, Newtec, NigComSat, NuRAN Wireless, North Telecom, NBN Co. , NTV-Plus, NextNet, Oklahoma Office of Management and Enterprise Services, Orbith, OneWeb, Papua Nea Guinea Government, Paratus, PSN, Q-Kon, Quantis, Quika, Rignet, RSCC, Servicio Satelital, Speedcast, Spacecom, SES, Sasol Oil & Gas, SpaceX, Sonali Bank, ScopeTel, Supernet, StarGroup, Satellite Internet, SuperUydu, SSW, SatCoNet, Satellite Solutions Worldwide, Telesat, Telecom Consulting Group, TBI, Timor Telecom, Thaicom, Telkom SA, Telebras, TV Isla, Tricolor TV, Talia, Tanaza, TierOne, UHP, US Army, Universal Satcom, ViaSat, Visiontec, We are IT Phillipines, Wales Access Broadband Cymru, Xplorenet, Yahsat, and Yourlink .
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