2017 SPECIAL
USDmillions
$ 14,000 $ 12,000 $ 10,000 $ 8,000 $ 6,000 $ 4,000 $ 2,000
Source : NSR
USDmillions
70,000 60,000 50,000 40,000 30,000 20,000 10,000
Source : NSR
0
16 An Supplement
Asia driving growth of SatCom ground equipment market
The cumulative revenue for the SatCom ground infrastructure equipment market will surpass the US $ 12- billion mark in the decade from 2015-2025 , according to the Commercial Satellite Ground Segment report from Northern Sky Research ( NSR ).
Direct-to-home ( DTH ) and consumer broadband , in particular , are verticals counting global annual shipments in the millions and will attract a large chunk of the revenue growth opportunities in ground equipment , said Lluc Palerm , senior analyst at NSR .
Writing in the Q1 2017 edition of the Asia-Pacific Satellite Communications Council ( APSCC ) newsletter , he reported that the market for DTH receivers is driving the majority of shipments , and will generate $ 64 billion in cumulative revenues through to 2025 .
In particular , Asia presents the largest market opportunity currently and over the long term . Unit shipments will grow at a CAGR level of 8.1 %, where the market base of 12 million in 2015 will grow to surpass 26 million by 2025 . Cumulative shipments from 2015-2025 will total close to 211 million units , Palerm said , adding : “ DTH is the largest market where cumulative unit shipments will total 206 million . Growing demand in key markets such as Indonesia will drive growth boosted by the growing number of pay-TV households and rising income levels .”
Following behind DTH in terms of annual shipments is consumer broadband , which will account for 3.3 million in cumulative shipments . While this segment is a “ distant second ” compared to DTT , its addressable market is “ massive ”, said Palerm , who also described the opportunity to capture new users as “ tremendous ”.
“ The challenges lie in serving unconnected users
GROUND EQUIPMENT REVENUES BY REGION
NAM LAM EU MEA ASIA
$ 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
GROUND EQUIPMENT SHIPMENTS BY REGION
NAM LAM EU MEA ASIA
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Unit shipments of ground equipment in Asia will grow at a CAGR level of 8.1 %, where the market base of 12 million in 2015 will grow to surpass 26 million by 2025 . Cumulative Asian revenues from 2015-2025 , meanwhile , will amount to $ 27.2 billion , representing a CAGR level of 7.4 %. economically and despite the rapid development of the vertical , the pressure on terminal costs and finding a compelling business model are key aspects that need to be solved ,” he added .
In revenue terms , Asia remains the second-largest market next to Western Europe , primarily because despite lower unit shipments , Western European purchases are for more expensive systems , such as mobility terminals where antenna systems drive costs upwards . Nevertheless , cumulative Asian revenues from 2015-2025 will amount to $ 27.2 billion , representing a CAGR level of 7.4 %.
The main drivers for Asia are in DTH , Palerm reiterated , which will account for $ 19.9 billion in 2015-2025 cumulative revenues due to the “ sheer volume ” of DTH terminals to be shipped in this time period . This is followed by Satcom earth stations at $ 2.7 billion , aeronautical terminals at $ 1.4 billion , consumer broadband at $ 619 million , maritime VSATs at $ 463 million , EO terminals at $ 431 million , and wireless backhual at $ 319 million .
Palerm also explained why , while ranked as the second-largest market in terms of unit shipments , consumer broadband terminals are ranked fourth in revenue terms .
“ This has to do with price such that a correlation of lower prices leads to higher shipments , thus stimulating demand ,” he wrote . “ However , the overall revenue picture is not as favourable as higher prices in other sectors such as aeronautical and Satcom earth stations , which account for relatively low unit shipments numbers , but command higher prices , leading to high revenue shares .”
Palerm also highlighted how more attention should be paid to Satcom earth stations , particularly demand for broadband earth stations that will be serving high throughput satellites ( HTS ). “ HTS poses a new set of requirements for teleports ,” he posed . “ With more powerful satellites , together with more efficient and powerful amplifiers on the ground , the need for large antennas is diminishing .”
NSR expects the traditional 36MHz transponder to generally lose its relevance , with electronics needing to adapt to efficiently saturate the new larger transponders . New frequency bands will also require adapted antennas and electronics , as well as new levels of redundancy with multiple access points .
The applications served will also change the way ground infrastructure is planned , Palerm suggested . “ A proliferation of IP applications , better backbone connectivity in developing countries and regulations , or simply the convenience of landing traffic locally is growing the demand for earth stations in emerging markets ,” he said .
Thus , broadband earth stations will attract the most demand in the vertical , which in turn mitigates the drop in demand for video stations . While growth in new DTH platforms in emerging regions and the transition to 4K / Ultra HD ( UHD ) will provide some opportunities , the real growth story for earth stations will centre on systems serving the HTS boom . These broadband stations , Palerm concluded , will progressively capture a larger share of revenues in Asia , as well as other regions of the globe .