Satcom Players Invest in New Space Business and High Throughput Satellites
April 2, 2019 | Frost & SullivanEstimated reading time: 2 minutes
The satellite communication (Satcom) ecosystem is witnessing rapid transformation, primarily due to increased competition both internally and from terrestrial service providers. As a result, the industry is poised to offer unique value propositions to existing and new customer groups through investment in new space business, high-throughput satellites, downstream infrastructure, and partnerships with downstream service providers. The market is expected to generate cumulative revenues of $119.05 billion from 2018 to 2025 at a 2.4% CAGR.
“Many small-satellite constellation operators have advanced in their development processes and plan to offer low-cost, affordable, global and seamless connectivity solutions. The aim is to bridge the digital divide across geographies. This is leading to a change in focus from geostationary satellite earth orbit to medium or low satellite earth orbit,” said Vivek Suresh Prasad, Senior Research Analyst, Space, at Frost & Sullivan. “Additionally, the exponential growth and advancement in fiber-based networks and technologies, including compression technology, are causing incumbent satellite operators to diversify their current solutions, revisit their existing business models, reduce their costs, and address evolving customer needs.”
Frost & Sullivan’s recent analysis, Global Satellite Communication (Satcom) Market Assessment, Forecast to 2025, analyzes how the Satcom market performed in the past five years, including regional and service market shares of top satellite operators. It covers market drivers, restraints and trends, as well as value propositions by new market entrants. The study presents a forecast for growth from 2019 to 2025, including regional and service market segmentation.
“Current value chain dynamics will evolve to accommodate both existing and new customer group needs,” noted Prasad. “This will open up multiple ongoing growth opportunities, including high-volume, on-demand video, reliable enterprise connectivity, in-flight entertainment, high-definition video transmissions, maritime connectivity, systems interoperability, remote connectivity, network upgrades to 2G/3G/4G/5G, and affordable single-point downstream solutions.”
Successful players should focus on the following strategies for additional revenue opportunities:
- Offering bandwidth and cost flexibilities to customers
- System and network integration/optimization
- Spot beams based on downstream demand
- Providing end-to-end solutions
- Targeting to offer affordable, seamless, low-latency, and global solutions
- New partnerships and acquisitions to enhance infrastructure and customer reach
- Increasing downstream demand extended connectivity, both in terms of geography and bandwidth
Global Satellite Communication (Satcom) Market Assessment, Forecast to 2025 is the latest addition to Frost & Sullivan’s Space research and analysis available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
About Frost & Sullivan
For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success.
Suggested Items
Omdia: OLED Monitor Display shipments to surge by 123% YoY as Top Brands Embrace its Technology in 2024
05/09/2024 | PRNewswireOLED monitor display shipments significantly increased in 2023, following an upsurge of 415% year-over-year (YoY), according to Omdia's Monitor Display & OEM Market Tracker. This trend is set to continue with Omdia forecasting a 123% YoY increase in 2024, reaching 1.84 million units, driven by industry leaders Samsung Display and LG Display.
IDTechEx Report: Illuminating the Future of Lidar in Automotive
05/09/2024 | PRNewswireIn the rapidly evolving landscape of Advanced Driver-Assistance Systems (ADAS) and autonomous driving, sensor technologies have emerged as a pivotal force driving innovations in the automotive industry.
Sondrel Awarded New Video Processor ASIC Design and Supply Contract
05/09/2024 | SondrelSondrel, a leading provider of ultra-complex custom chips for leading global technology brands, is pleased to announce that it has won a major ASIC design and supply contract for a next generation, video processing chip.
IDC Forecasts Slower Growth for Global Telecommunications Services Market: Could AI Help Telcos to Maintain Healthy Margins?
05/08/2024 | IDCWorldwide spending on Telecom Services and Pay TV Services reached $1,509 billion in 2023, an increase of 2.1% over 2022, according to the International Data Corporation (IDC) Worldwide Semiannual Telecom Services Tracker.
Simbe Partners with Plexus to Scale Manufacturing and Meet Global Retail Demand
05/08/2024 | Globe NewswireSimbe, the leading provider of Store Intelligence™ solutions that increase retailer performance through unprecedented visibility and insights, today announced a partnership with Plexus Corp. to bring its best-in-class retail robotics-as-a-service to market quickly and at global scale.