NSR Report: Commercialization of Space Driving nearly 570 Exabytes of Information
Near-term launch delays in Satellite Communications Markets met with Significant Increases in Nearly All Other Segments
Cambridge, MA August 17, 2022 – NSR’s newly released Space Traffic Study, 2nd Edition report finds that commercialization of more segments of the space value-chain is driving a rapid increase in traffic volumes. Although markets such as Earth Observation or Space Tourism still only account for 5% of the cumulative data volumes between 2021 and 2031, cloud connectivity and increased investments to downlink data ‘from space’ are paying off in total data volumes.
“Data from space is an increasingly important and recognized part of our lives here on Earth,” states Research Director, Brad Grady. “As current events highlight, space-based data gives us an unprecedented understanding of the world around us.”
Launches to space (Satellites or Humans) are nearly commonplace, and more corners of the world are gaining internet access through space-based connectivity from GEO/MEO/LEO.
“Although government budgets still have an outsized influence on the space industry,” notes NSR Research Analyst, Hannah Currivan the growing commercialization of space travel, Earth observation, and internet connectivity drives growth.” Overall, it is still data transmitted through space which drives market dynamics.
Growing more than 60 exabytes of cumulative traffic volumes compared to NSR’s first edition study, challenges in GEO offset near-term growth in Applications and Infrastructure. Although growth favors LEO/MEO satellite connectivity, it is still GEO which will remain the largest source of traffic volumes from 2021 to 2031.
While the difference between these competing orbits continues to shrink, highly affordable terminals and other LEO setbacks cannot offset the inertia behind GEO connectivity plays. A migration from video to data and GEO closer to earth is all underway in the connectivity market which accounts for 95% of cumulative data volumes.
Overall, signs are starting to show that things other than connectivity are transforming the space sector. While satellite communications is ‘the use-case’ fueling space data traffic volumes, there are new and growing markets that provide greenfield opportunities for established and emerging players.
Bottom Line – Cloud connectivity, commercialization, and ‘more data from more places’ – are the key ingredients for space data traffic growth through 2031.
About the Report
NSR’s Satellite Traffic Study 2nd Edition (STS2) is THE industry resource for assessment of the data traffic levels being generated across the sector through the decade. Providing essential insights on the volume of data ‘beamed back’ to earth the report answers: “How many PB?”
NSR’s Space Traffic Study is the next in a series of studies that leverages NSR’s upper-level taxonomy and market mapping, segmenting the space and satellite industry into 3 main groups (Infrastructure, Applications, and Connectivity). Space Traffic Study further divides each segment into subsegments, along lines of NSR’s Global Space Economy study. Together, these two reports provide commentary on the revenue and data volume aspects of the industry.
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 +1 617 674-7743.
About NSR (www.NSR.com)
Northern Sky Research (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.
NSR primary areas of expertise include satellite and wireless networks, emerging technology, and media applications. Our services and clients cover the entire globe. With extensive expertise in all geographic regions, NSR is a leading provider of in-depth market insight and analyses. Since each NSR product is based on future perspectives, our analyses allow our clients to stay a step ahead of the competition and plan for future opportunities in all markets.
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