NSR Report: Satellite Backhaul Primed to Generate $25 Billion Annually by 2030
COVID-19 Recovery, Managed Services and Network-as-a-Service Business Models Help Industry Target 22 Tbps Addressable Market
Cambridge, MA – April 12, 2020 – NSR’s Wireless Backhaul via Satellite, 15th Edition report, released today, forecasts $25 billion in annual revenue in 2030 for satellite backhaul, propelled by explosive connectivity demand worldwide and post-COVID-19 recovery in the near term. As it is a core target of virtually every current and new satellite capacity provider, NSR expects Satellite Backhaul to represent one of the largest revenue opportunities for satcom over the next decade.
Digitization is climbing in governmental agendas, pushing for ubiquitous Broadband and creating skyrocketing levels of bandwidth demand. Satellite is finally regarded as an alternative tool for rural deployments, thus creating a massive opportunity for Cellular Backhaul. Trunking is returning to growth with new price points triggering elasticities. Hybrid IP Content Distribution continues on a test phase with little traction during 2020, but the long-term potential continues to look promising.
COVID-19 did have a negative impact on the Satellite Backhaul market, especially for equipment vendors. Deployments were interrupted and the cadence of new deals slowed. However, during the second half of 2020 there was an energetic recovery. The industry is just scratching the surface of the addressable market with 470 Gbps of traffic consumed today, compared with the total potential of 22 Tbps in 2020 (and expanding due to consumer trends).
“New business models like Managed Services and Network-as-a-Service are key to make satellite easier to adopt by MNOs,” states Lluc Palerm, report author. “These emerging offers are growing rapidly with some deployments counting sites in 1,000s. However, higher risks are involved and the upfront CAPEX to develop these services is considerable. The players that succeed in this transition will be able to capture a portion of the $25 Billion annual revenue opportunity by 2030,” according to Palerm.
While there have been early tests, commercial Satellite Backhaul of 5G will still take time to develop. 35% of the traffic by 2030 will be driven by 5G. However, the importance of 5G goes well beyond backhaul of 5G Cells as it will facilitate seamless orchestration of satellite and terrestrial networks while opening multiple new use cases.
About the Report
NSR’s Wireless Backhaul via Satellite, 15th Edition is the industry leading analysis and forecast of 3 Key market segments: Mobile Wireless Backhaul, Trunking and Hybrid Networks. New in this edition is a high-resolution assessment of the addressable market for potential subscribers and bandwidth requirements, as well as a revenue forecast for the emerging Managed Services and Network-as-a-Service Business Models. The study analyzes the installed base of sites in seven different regional markets, investigates trends impacting market growth, forecasts capacity and equipment revenues, and predicts satellite capacity requirements for provisioning each market vertical. Beyond classic C-, Ku- and Ka-band FSS capacity, NSR also leads the industry in forecasting use of High Throughput Satellites (HTS) segmented by band (C-, Ku- & Ka-bands) for GEO-HTS systems and assesses the impact of Non-GEO HTS constellations in the Backhaul 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.
Companies and Organizations Mentioned in the Report:
ABS, Africa Mobile Networks, Altán REDES, Amazon, Andesat, Antrix/ISRO, APT Satellite, ArabSat, AsiaSat, AT&T, Avanti Communications, Axess, BSNL, Broadpeak, China Satcom, Claro, Comtech, Dish, EE, Ericsson, Eutelsat, Facebook, Gazprom Space Systems, Gilat Satellite Networks, Gilat Telecom, Globe Telecom, Google, Hispasat, Huawei, Hughes, iDirect, Inland Cellular, Intelsat, IP.ACCESS, Kacific, Kcell, MEASAT, MTN, NBN, Newtec, Nokia, Novelsat, NuRAN, O3b, OneWeb, OptimERA, Optus, Orange, Quadrille, Reliance Jio, RSCC, SCT, SES, SKY Perfect JSAT, Softbank, Southern Cross Cables, Southern Linc, Spacecom, Spacebridge, SpaceX, Speedcast, Star One, Telefonica, Telenor, Telesat, Telespazio, Thaicom, TIM, T-Mobile, UHP, Vanu, Verizon, ViaSat, Vodacom, Vodafone, WOM Colombia, Xiplink, YahSat, and ZTE.
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 high 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.
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