Broadband Satellite Market to Escape Economic Malaise Largely Unscathed If Recovery Starts Prior to End of 2009
Sector Revenues to More Than Double Reaching US$7.6 Billion by 2018
| Source: NSR
CAMBRIDGE, MA--(Marketwire - April 7, 2009) - NSR LLC today released findings from its
latest report, "Broadband Satellite Markets, 8th Edition" that indicate the
broadband satellite sector may remain relatively unaffected by the global
economic crisis if a turnaround begins in the next 6-12 months. The report
is a comprehensive analysis of the global market for broadband VSAT
networking, single site satellite broadband Internet access, and satellite
broadband trunking & backhaul services in all regional markets.
Companies selling broadband satellite services as a whole had a very
successful 2008 with solid revenue growth and sustained increases in
installed bases of broadband VSAT sites and satellite broadband
subscribers. Moving into 2009, many players report business activity as
strong, if not stronger, as a year ago, and there is a definite optimism in
the industry that most players will successfully navigate the treacherous
waters of the global economic downturn. Yet, there is an undeniable
undercurrent of concern and uncertainty with most companies couching their
positive outlooks based on the premise that general economic recovery at
least commences by late 2009. Should the opposite prove true, then all bets
are off.
In assessing the overall broadband satellite markets segment, it is assumed
that economic recovery does occur late in 2009 and 2010. Further, it is
likely that there will be a generalized spike in demand in the 2011-2013
time period should this assessment prove correct as slowed or delayed
projects are restarted and new satellite capacity is launched in the next
two years unlocking a number of regional markets that are suffering from
limited capacity and high capacity pricing. Beyond 2014, NSR assumes that
growth in the above mentioned individual markets will at least return to
historical levels and that overall service and customer premises equipment
(CPE) revenues for the industry will climb from US$3.3 billion in 2008 to
over US$7.6 billion in 2018.
Broadband VSAT networking services for classic verticals such as corporate
VPN, retail, hospitality, oil & gas, financial & banking, digital media and
other applications have long been the foundation of the overall broadband
satellite market. This segment, on a global basis, still generates the most
in terms of revenues, required bandwidth, and leased commercial satellite
capacity. However, in 2008 the single site satellite broadband Internet
access market became the market leader in terms of installed base with over
1.1 million subscribers. By the middle of its ten-year forecast period, NSR
projects that single site satellite broadband Internet access services will
take the lead in all industry measures including revenues and leased
commercial satellite capacity. This trend clearly illustrates why many
players in the market are focused on building their base within single site
satellite broadband Internet access services.
Finally, NSR continues its long standing projection for slowly declining
trunking services, but growth in various backhaul services will more than
offset this drop. The single most important aspect of the trunking &
backhaul market is that despite the relatively small installed base
compared to the two other market segments, trunking & backhaul generates by
far the highest revenue per site.
About the Report
"Broadband Satellite Markets, 8th Edition" is a multi-client report now
available from NSR. This study drills down into the broadband satellite
market in order to provide an in-depth analysis of key trends in seven
different regional markets. The report provides the satellite industry
with timely and pertinent data regarding growth in one-way and two-way
broadband VSAT sites, subscribers to single site satellite broadband
Internet access services, trends in the broadband trunking & backhaul
markets, projected service revenues, revenues from sales of customer
premises equipment, bandwidth demand, and leased commercial satellite
capacity. Further, the study is completely integrated with NSR's "Global
Assessment of Satellite Demand, 6th Edition" and "Wireless Backhaul via
Satellite, 2nd Edition" studies such that they offer a library of detailed
analysis of demand for commercial satellite services for the industry. For
additional information on this report, including a full table of contents,
list of exhibits and executive summary, please visit www.nsr.com or call
NSR at 617-576-5771.
About NSR
NSR is an international market research and consulting firm specializing in
satellite and wireless technology and applications. NSR's primary areas of
expertise include emerging technology, IP applications, and broadcast
services. With extensive expertise in all regions and a number of
broadband sectors, NSR is a leading provider of in-depth market insight and
analyses.