Data Applications Drive US$ 189 Billion in Satellite Capacity Revenues over Next Decade

Cambridge, Mass., July 26, 2018 – NSR’s Global Satellite Capacity Supply & Demand, 15^th Edition report, published today, finds satellite capacity revenues continue a long-range growth path of 6.8% CAGR over the next decade.  However, near term caution persists as business models pivot to data-centric & HTS applications, amidst a projected video-centric capacity revenue loss over US$ 2 billion by 2027.  Emerging data use cases, such as Mobility, Cellular Backhaul and Broadband Connectivity, will undoubtedly propel the next wave of satcom growth.

The slope may flatten a bit, but capacity pricing continues downward. Unlike previous pricing instability, where cyclical supply and demand disconnection was the main driver, technology is behind current declines. As Space Segment and Ground Segment continue to reduce CAPEX/Mbps at an accelerated pace, NSR does not expect pricing to rebound in the foreseeable future; however, this is not necessarily bad news for the industry.  “Lower capacity prices, advances in ground segment and innovative business models matched with insatiable demand for connectivity everywhere, anytime will unlock new use cases propelling industry growth,” notes Lluc Palerm, NSR Senior Analyst and report author. “HTS satellites load x100 times the capacity at 1/10 fraction of the cost per Mbps of traditional satellites. This presents both opportunities and challenges, but operators cannot expect to sell capacity using the same business models and pricing strategies as before, ” stated Palerm.
 
The HTS ecosystem is still underdeveloped for many applications and regions across the globe, which hints at sizable  growth opportunities for players that can adapt to the new paradigm. Operators face one of the most challenging times ever when designing satellite payloads, as they need to balance legacy widebeam capacity providing today’s revenues, albeit from eroding verticals, with HTS, which is the growth engine for the future, but requires intense efforts to develop the market. “A growing number of operators are incorporating hybrid and flexible payloads to their designs. They cannot discontinue FSS-based legacy services and need to stay flexible in front of future disruptive forces like LEO constellations, 5G or emerging space powers like China, for which commercial success is not always the primary objective,” stated Palerm.

NSR’s Global Satellite Capacity Supply & Demand, 15^th Edition (GSCSD15) is the industry’s most thorough study of the satellite telecommunications market from a supply and demand perspective. The report offers highly detailed forecasts across eight separate applications in each of seven different types of capacity (C-band, Ku-band, widebeam Ka-band, HTS C-band, HTS Ku-band, HTS Ka-band, Non-GEO HTS) for thirteen regions. With over 1,000 tables and charts within the client Excel data sheets, as well as qualitative analysis explaining the context of the data within the PowerPoint, the report provides the most comprehensive and detailed data and analysis available to the industry. With data from NSR’s library of reports, combined with the company’s signature holistic analysis, GSCSD15 is the must-have tool for in-depth understanding of the industry, allowing for bottom-up assessments of specific markets and trends. 

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.