NSR predicts $11bn in cloud-based revenue over the next decade, with Satcom markets leading the way.
Cloud computing via satellite is projected to drive 52 Exabytes of traffic by 2029, with players in the satellite and space industry contributing cumulative revenue of $16bn from 2019-2029, according to a new report by NSR. The market is largely Satcom-centric, with a significant portion of the revenue flow going to service providers and satellite operators.
“The transformation brought about by the adoption of Cloud Computing and Big Data analytics is only beginning to impact the satellite sector”, states Shivaprakash Muruganandham, NSR Analyst and report author. It ranges from cloud-hosted applications by end customers to Cloud storage/processing by geospatial analytics providers. For a growing number of satellite operators and service providers, partnering with big IT and cloud players helps them drive increased bandwidth usage with existing customers.
The primary cloud verticals, maritime offshore and passenger cruise, along with aeronautical Satcom, will generate more than $7bn cumulatively over the 10-year forecast period. Additionally, onshore energy, gov/mil, and retail and banking Satcom markets are set to expand their cloud-first digitisation strategies.
Muruganandham adds: Surprisingly, the Earth observation industry was found to trail behind in terms of raw data traffic downlinked to cloud servers, while the downstream geospatial analytics segment shows strong signs of growth.
NSR recognises that cloud might not be a scalable cost for all, despite its tremendous value add. Still, newer applications such as the use of satellites for cloud storage and compute capabilities are nascent markets set to grow strongly over the coming decade.
