Analysts at research specialist Frost & Sullivan, in a study of the prospects for satellite-based connectivity services, say 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.
“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 such as Eutelsat and Telesat are investing in narrow and broadband services using LEO smallsat 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 smallsats operating in Ku-, Ka- and V-bands to provide unified, affordable, low-latency, and global connectivity solutions.”
“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 key to success will be aggressive investment and development of non-existent downstream infrastructure such as multi-beam ground station terminals for seamless connectivity. Manufacturers will need to optimise low-rate serial production lines to boost small-satellite output.”