The satcom market is expected to generate cumulative revenues of $119.05 billion from 2018 to 2025 at a 2.4% CAGR, according to a new report by Frost & Sullivan. The report, titled Global Satellite Communication (Satcom) Market Assessment, Forecast to 2025, speaks about the rapid transformation in this segment, 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.
Many small-satellite constellation operators have advanced in their development processes and plan to offer low-cost, affordable, global and seamless connectivity solutions, commented Vivek Suresh Prasad, Senior Research Analyst, Space, at Frost & Sullivan.
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. 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.
The report further analyses 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.
The report stated that successful players should ideally focus on offering bandwidth and cost flexibilities to customers; system and network integration and optimisation; spot beams based on downstream demand; end-to-end solutions; affordable, seamless, low-latency, and global solutions; new partnerships and acquisitions to enhance infrastructure and customer reach and increase downstream demand extended connectivity, both in terms of geography and bandwidth.