Capacity Supply from VHTS, NGSO Satellite Systems to Grow from 1.3 Tbps in 2017 to 10 Tbps by 2022
Paris, France, March 20, 2019 — Wholesale capacity revenues from telecom applications will surpass video applications by 2021, whose growth is largely supported by the influx of low-cost capacity from new VHTS systems & NGSO broadband in the coming years. As a result, total capacity supply is projected to grow eight-fold from 1.3 Tbps in 2017 to nearly 10 Tbps by 2022.
Based on the latest market projections found in Euroconsult’s latest report, Satellite Communications & Broadcasting Markets Survey, in its 25th edition, the report said the FSS industry continues to move towards telecom/data markets, as wholesale revenues derived from video markets continue to erode.
The report concluded that innovations in technology, services and in the ecosystem will make satellite connectivity relevant in the context of the communication sector of the 2020s, that will see the spread of terrestrial 5G and the rollout of a wider range of communication services, either between humans or driven by IoT exchanges.
In the short term, the impact on legacy services and the related pressure on the economic performance of operators could be unfortunately described as a necessary pain, and is certainly no different from the cyles observed in other industries navigating a breakthrough innovation period, the report said.
But the growth acceleration in HTS capacity demand, the authors said, confirm their view of the market shift from regular to HTS and the increasing demand for telecom applications. HTS capacity leased increased to around 594 Gbps in 2017, a new record high, and a clear acceleration (+36% y-o-y) in take-up across all telecom verticals.
The net growth in capacity usage in 2017 did not result in revenue growth as the FSS industry is still absorbing the impacts of the recent capacity price resets. Leased regular capacity decreased for the first time in more than a decade to around 6,920 TPEs in 2017. Growing requirements for video distribution, milsatcom and aero IFC are expected to mute regular capacity erosion until 2020.
The report outlined the key trends, drivers & forecasts for FSS satellite communications as follows:
- Transponder pricing trends
- Demand trends & 10-year forecasts by application, region & frequency band
- Supply trends & 10-year forecasts by region & frequency band
- Operators' market shares by application & region
- Assessment of high throughput services (including Ka & Ku-band)
- Upgraded supply databases & expanded HTS demand forecast with capacity leased versus used
