Alliances, New Business Models, and Investments Open Up Opportunities in the Enterprise Satellite Connectivity Service Industry

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Frost & Sullivan’s recent analysis of the Future of Enterprise Satellite Connectivity Services, Global, 2018 reveals that downstream digital transformation, increased usage of internet of things (IoT), system upgrades by large enterprises, and remote location connectivity are key factors driving satellite-based connectivity service evolution. Frost & Sullivan anticipates increased price competition with high demand for seamless connectivity infrastructure; new low-cost, high-data rates; and global connectivity solutions for end users.

“Value chain dynamics are changing with new investment from private firms and financial institutions empowering entrants with innovative business models to offer low-latency, affordable and global connectivity solutions,” said Vivek Suresh Prasad, Space Industry Principal, Aerospace & Defense. “To compete, incumbent participants are expanding their portfolios, increasing investments and partnerships in downstream infrastructure, and developing high-throughput small-satellite services.”

The market is abuzz with activity, and new alliances are being formed between existing and new entrants to evolve low-cost, integrated, and seamless global aviation connectivity services. Geostationary satellite operators like Eutelsat and Telesat are investing in both narrow and broadband services using LEO small-satellite constellations. Intelsat is integrating its geo, HTS and terrestrial capacities to provide high-speed broadband access services across the globe. Launch service providers are also entering the market; for instance, SpaceX plans to build a constellation of 12,000 small satellites operating in Ku, Ka and V bands to provide unified, affordable, low-latency, and global connectivity solutions.

Growth opportunities are abundant with key trends outlined below:

• Technological developments in satellite platforms, network architecture, and propulsion systems enable satellite operators to offer next-generation downstream connectivity solutions.
• End-user system upgrades and digital transformations result in increased data rates and low-latency connectivity requirements.
• New policies and regulations reduce the barriers to entry, providing a framework for capacity consolidation and enabling digital transformation across the globe.
• Enterprises establish different connectivity services for business intelligence and operations.
• Small satellite-based broadband and narrowband services fill the capability gap and enable a truly global Internet of Things (IoT) landscape.

“The key to success will be aggressive investment and development of non-existent downstream infrastructure such as multi-beam ground station terminals for seamless connectivity,” noted Vivek. “Manufacturers will need to optimize low-rate serial production lines to boost small-satellite output.”

Frost & Sullivan’s recent analysis, Future of Enterprise Satellite Connectivity Services, Global, 2018, investigates current modes of services delivery to customers; key factors impacting satellite-based connectivity services; competitive landscape; new products, services and value propositions by players such as Eutelsat, Intelsat, ViaSat, Inmarsat, Telesat, SpaceX, OneWeb, Sky and Space Global, Kepler Communication, and NSL among others; end-user connectivity requirements for segments such as emergency services, oil & gas, aviation, maritime, rail transportation; and key trends for high-throughput satellites, LEO and MEO constellations.

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