Report: Increased opportunities for satellite broadband
December 11, 2020
A report from management consultants Deloitte says that commercial aerospace and defence industry revenues will recover in 2021 after the challenges of 2020.
Deloitte says that satellite-based broadband (and space exploration) will continue to drive growth.
“As funding continues to increase and costs decline, the space industry is likely to experience increased opportunities, primarily in satellite broadband internet access. In the first half of 2020, space investments remained strong at $12.1 billion; this momentum is likely to remain solid in 2021 as well,” says the report. “Space launch services are also expected to record strong growth in 2021, with the market forecasted to grow more than 15 per cent year over year. Space exploration is expected to continue to evolve and grow in 2021 as well, due to declining launch costs and advances in technology.”
However, the report is cautious on the prospects for a return to business-based passenger air travel which is extremely important to the satellite broadband industry.
“An effective vaccine against Covid-19 could result in short-term growth in passenger traffic, driven by pent-up demand. However, this is unlikely to offset the ongoing damage to lucrative business travel, which may take two to three years to recover, as virtual meetings are expected to continue to substitute in-person meetings for a prolonged period,” concludes Deloitte.