Euroconsult, an expert on space and satellite-based applications, has released its flagship research, which predicts the satellite communications market will grow to $19.4 billion (€17.6bn) by 2028. Following a decline that began in 2014, the research forecasts a return to revenue growth beginning in 2020, driven by demand for broadband applications, including rural connectivity, in-flight communications, as well as cellular backhaul.
“A confluence of market and technology forces have contributed to a period of great turbulence in the satellite industry,” said Nathan de Ruiter, Managing Director of Euroconsult Canada and Editor of the Research. Traffic over satellite continued to increase to nearly 1.3 Tbps in 2018, however, this did not drive revenue growth because of reductions in capacity pricing across all regions. “While headwinds continue to persist in 2019, it is encouraging that our findings point to a return to revenue growth next year”.
The satellite communications market is heading towards an inflection point in 2021, where wholesale revenue for voice & data applications will equal traditional broadcast revenues. Post 2022, the satcom market should enter an era of market expansion, driven by anticipated demand elasticity in price-sensitive verticals, such as consumer broadband access, Wi-Fi hotspots, inflight connectivity and cellular backhaul.