CAMBRIDGE, MA--(Marketwire - August 17, 2010) - NSR's annual in-depth analysis of the Mobile Satellite Services (MSS) market found the industry remained generally stable over the past 12 months amidst turmoil surrounding the global economy. By focusing on a core suite of unique applications and customers, in addition to funding and building the next generation of satellites to enable a new era in MSS provisioning, the MSS industry continues to trudge forward and plan for its next growth phase.
"The MSS industry has weathered a storm in the past 18 to 24 months and held on despite a general investor confidence crisis and the economic recession," stated Claude Rousseau, Senior Analyst for NSR and author of the report. "With government funding and private investors supporting the industry, it has continued to show growth in traffic while targeting a larger set of customers in the maritime, land-mobile and aeronautical markets."
The industry grew by a few percentage points in 2009 despite some hiccups as subscribers stopped using airtime or even delayed upgrades or purchase of new products, while some operators delayed new equipment purchases. NSR forecasts the global market for mobile satellite services will grow from $4.2 billion in retail revenue in 2009 to $10.9 billion in 2019. The NSR in-service units forecast shows a growth from 1.9 million units in 2009 to more than 5.7 million in 2019 at a compound annual growth rate of 11.6%.
The MSS-ATC/CGC segment, which is taking on a whole new shape, appears to be a bright spot. Its fortune is the spectrum allocated to MSS operators who hold it, and whose value to terrestrial operators, busting at the seams with backhaul traffic and facing coverage deficiencies, has recently been recognized. The issue of finding the right business model, with or without satellite, will tell if the MSS portion will survive or remain a niche market offering.
One challenge is that expected consolidation in the MSS industry has not happened yet, despite the market not being adverse to it. There are still too many players vying for a piece of a relatively small pie compared to other telecommunications markets, which stretches an already fragmented industry, especially in the legacy maritime sector.
The MSS killer application, data services, is unfortunately a low airtime consumption market. However, data is also raising more awareness of the quality of mobile satellite connectivity and its importance, and acceptance, should grow with increased capabilities and integration with positioning, navigation, safety of life, security and movement, and tracking applications.
About the Report
Mobile Satellite Services, 6th Edition is a multi-client report now available from NSR. The report provides a complete and comprehensive analysis of demand trends for the MSS market today and over the next 10 years, covering eight regions and forecasts for equipment and services as well as transponder demand in the satellite handheld, maritime, land-mobile and aeronautical markets, as well as for MSS-ATC/CGC, for the period 2009-2019. 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.