Joseph Ibeh, market analyst at Northern Sky Research, told Emerging Tech Brew that to understand the nature of investment in the space industry, it’s important to parse out the traditional space industries from the up-and-coming startups. The space industry is not immune to economic downturns, but the more established companies—those that have secured government contracts.
Over the past seven years, satellite capacity pricing has maintained a year-on-year downward spiral, primarily driven by the imbalance in supply-demand dynamics and the transition to High Throughput Satellites (HTS) with better unit economies. However, since 2020, with the outbreak of the COVID-19 pandemic, satellite capacity pricing negotiations have become increasingly intricate as service providers.
Demand for Inflight Connectivity (IFC) is at an all-time high, with growth outpacing the general aviation sector’s recovery from the COVID-19 pandemic. The pandemic heralded two fundamental changes in IFC demand. First, passengers developed more hunger to stay connected while onboard, emulating behavioral patterns learned at home at the peak of the pandemic-induced work-from-anywhere and.
User Walls: NSR Report sees Satellite Capacity Pricing Stabilizing, yet Increasingly Complex Period for Pricing Negotiations
NSR’s Satellite Capacity Pricing Index, 8th Edition finds Satellite Operators sitting at a crossroads of multiple macro-economic headwinds, external competitive pressures, and supply chain challenges, driving need for innovative strategies. As pricing stabilizes in Q2 2022, technology efficiencies, supply-demand gap and macro-economic factors trigger increasingly complex pricing negotiations.