The fixed satellite services market was valued at USD 22.46 billion in 2019 and is projected to reach USD 27.15 billion by the end of 2025, registering a CAGR of 5.48% during the forecast period (2020 - 2025).
- Fixed satellite services (FSS) use ground equipment at set locations to receive and transmit satellite signals. Fixed satellite services generally have a low power output and larger dish-style antennas are required for reception. Also, the satellites used for fixed service require less power than direct broadcasting satellites (DBS).
- The fixed satellite service market is expected to grow significantly over the forecast period, owing to the rise in the extensive use of data communications and increasing demand for high-speed internet.
- High capital investment and increasing use of fiber optic transmission cables are some of the major factors restraining the adoption of the fixed satellite services. Also, the stringent government regulation related to the market and limited orbital locations can also effect the entrance of new players into the studied market.
- The demand for fixed satellite services is also rising from the enterprise segment. In July 2018, Gilat Telecom announced that it was chosen as a service provider for Iridium Certus for land-mobile applications and can now offer customers a wider variety of fixed connectivity solutions.
Scope of the Report
Fixed satellite services (FSS) provides a high-speed connection to the end users by making use of very small aperture terminal (VSAT) technology. FSS systems are positioned in a fixed strategic location and the coverage area extends up to several square miles. FSS systems are used in various sectors like commercial, aerospace and defense, media but the telecom industry is the prime user among all.
Key Market Trends
Increasing 5G Penetration to Stimulate the Market Growth
- Increasing 5G penetration is expected to further increase the market growth over the forecast period. This is because with the increased usage of 5G connection among users, the market is likely to grow even bigger as the 5G connection uses the fixed satellites to establish connections.
- Research has been undertaken regarding 28 GHz band sharing between 5G new radio cellular systems and fixed satellite services (FSS).
- This method focuses on modelling a sharing scenario between the uplink of the FSS system and the uplink of the 5G NR enhanced mobile broadband (eMBB) cellular system. It can help in developing an interference from the FSS terminals toward the 5G base station, known as next-generation Node-B.
Asia-Pacific is Expected to be the Fastest Growing Market
- The region is estimated to be the fastest growing market over the forecast period, owing to the booming telecom sector in the region and increasing investment in the satellite services market.
- In December 2018, China launched its first communication satellite to provide space-based internet services worldwide, in an apparent bid to rival other international firms. Moreover, in February 2019, India launched its communication satellite GSAT-31 by a European launch services provider. It is a “high power” communication satellite with Ku-band, and it is going to serve and replace some of the satellites that are going to expire soon.
- The continued efforts by the government of the countries and their efforts are driving the fixed satellites and therefore the related services market in the region.
The fixed satellite services market is highly competitive and consists of a few major players. In terms of market share, a few of the major players currently dominate the market. These players with high market shares in the market are focusing on expanding their customer base across foreign countries. These companies are constantly seeking strategic collaborative initiatives to increase their market share and increase their profitability. The companies operating in the market are also collaborating/acquiring firms working on fixed satellite services to strengthen their product capabilities. Some of the major firms in the market are Intelsat SA, Eutelsat Communications, Singapore Telecommunications Ltd (Singtel), among others.
- July 2018: Intelsat and Eutelsat announced that they are aligned on a market-based proposal for the future use of the lower C-band spectrum in the United States.
- June 2018: Intelsat announced that the Ministry of Transport and Communications (MOTC) of Myanmar broadened its relationship with Intelsat to accelerate the deployment of the country’s wireless communications infrastructure in Myanmar.
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1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Increasing DTH Subscriptions
4.3.2 Increasing Demand from Corporate Enterprise and Growing use of Transponders in the Media and Entertainment Industry
4.4 Market Restraints
4.4.1 High Capital Investment and Increasing Use of Fiber Optic Transmission Cables
4.4.2 Regulatory Constraints and Limited Orbital Locations
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Type of Services
5.1.1 Transponder Agreements
5.1.2 Managed Services
5.2 By End-user Vertical
5.2.3 Aerospace and Defense
5.2.5 Other End-users Verticals
5.3.1 North America
5.3.4 Latin America
5.3.5 Middle East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Embratel Star One
6.1.2 Eutelsat Communications
6.1.3 Telesat Holdings
6.1.4 Thaicom Public Company Ltd
6.1.5 Nigerian Communications Satellites Ltd
6.1.6 Telenor Satellite Broadcasting
6.1.7 Singapore Telecommunications Ltd (Singtel)
6.1.8 SES SA
6.1.9 Arab Satellite Communications Organization
6.1.10 Hispasat SA
6.1.11 Intelsat SA
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
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