We won’t lie – 2018 was a hard year for satellite players with an interest in the Energy Markets. Commodity pricing for energy products was weak or unstable, global economic activity shrank, and energy customers had their own financial challenges. So – in the face of ongoing macro-economic challenges, why does NSR continue to be so optimistic around a 2020 turnaround?
“All signs point to some form of a turnaround in the near future”….. While some Energy Satcom markets such as Mining are showing flat growth, upstream Oil & Gas will account for nearly 50% of the new revenue opportunities in the coming decade. Driven in part by the need for higher throughput connectivity from GEO.
Upstream oil and gas markets will yield nearly $900 million in retail revenues for the satcom market by 2028, said the 8th edition of Energy Satcom Markets released by NSR. While retail revenue growth remains in the low single-digits growth over the next ten years – the market continues to have bright spots and opportunities.
NSR’s Energy SATCOM Markets, 8th Edition (ESM8) report, released today, forecasts retail revenues for key energy markets (Onshore and Offshore Oil & Gas, Midstream pipeline distribution, Mining, and Electrical Utilities) to yield nearly $10 Billion in cumulative revenues from 2018 – 2028.
The mining industry, which has so far remained the smallest addressable market for the energy satcom providers, is gradually morphing into a growth opportunity for satellite connectivity. On the heels of the last commodities downswing, globally diversified miners are focused on increasing productivity and maximizing the value of their existing assets, while newer mining juniors.