NSR: Satellite ground segment reaching $158bn in next decade
August 21, 2017
NSR’s Commercial Satellite Ground Segment, 2nd Edition (CSGS2), forecasts 2016-2026 cumulative global revenues for Commercial Satellite Ground Equipment to surpass $158 billion. Satellite TV continues to be the largest segment by shipments and revenues. Consequently, STBs and Antennas generate the largest revenue shares. However, in terms of growth VSAT platforms (modems + baseband equipment), driven by verticals such as Consumer Broadband and Mobility, will exhibit the highest levels. RF chains will also see applications like Aeronautical Satcom booming, while other verticals, such as Satcom Earth Stations, will contract. This leads to overall flat revenues of approx. $1.3 billion per year.
“Satellite Ground Equipment is a very dynamic market with opportunities available across the board. However, technologies and business models are changing at a rapid pace and only the most adaptive actors will survive,” stated Lluc Palerm, NSR Senior Analyst and report author. “VSAT platforms will see spectacular developments from emerging verticals like Consumer Broadband and Cellular Backhaul, but to capture these growth opportunities, vendors will need to move platforms to the ‘cloud’ and closely integrate with the space segment.”
Satellite Ground Equipment is analysed by equipment type, and forecasts are segmented by STB, modems, antennas, and RF equipment. Antenna manufacturers are falling into commoditization in the low-end, while highly specialized applications are witnessing a surge in demand. Flat Panel Antennas (FPAs) have the potential to disrupt these highly profitable opportunities. With segments such as Satcom Earth Stations shrinking, traditional RF equipment might experience a readjustment in revenues. Yet SSPA will see a bright future with applications, like mobility or cellular backhaul, moving to higher throughputs and performances continuously improving.
Baseband Equipment is witnessing skyrocketing demand from HTS platforms. The flexibility to serve multiple verticals, the need to scale to (V)HTS or the need to boost bandwidth efficiencies are essential success factors for the future. In the Satcom Earth Stations segment, demand for FSS Broadband and Video will encounter challenges, but HTS will spur growth. The Earth Observation Ground Segment will remain a relatively small market, but opportunities serving the small satellite revolution will stimulate demand.