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May 22, 2013

Satellite Industry to Experience Growth - NSR

By Raju Shanbhag, TMCnet Contributor

Satellite is facing a demand crunch as companies are tightening their purses. But amidst this gloom comes a report from NSR that is hopeful about future of satellite industry. In its 3rd Edition report about satellite industry, NSR claims that new technological innovations will make the satellites more affordable and will put the industry back on track.

According to the report, commercial GEO satellites are facing a decline in demand and that’s a cyclical phenomenon. Although satellite manufacturing and launch services go hand in hand, they will react to market conditions in different ways, the report claims.

Although the demand is low, most satellite companies will still hover in this domain as they are largely protected by government policies. These polices prohibit self regulation and thus prevent oversupply.

According to another report published by Euroconsult, the fixed satellite segment will witness considerable growth in the coming year. It has remained constant in the last few years too. The market for fixed satellites is expected to reach some $13.4 billion in 2018 (or $16.8 billion including wholesale revenue).

“Game changing technologies are making their way into satellite design, such as hybrid and electric propulsion systems, and should affect the demand for high-power commercial GEO satellites. In parallel, launch vehicles are improving through lighter materials or upgraded engines, and new contenders are finally making their way to the market," stated Stephane Gounari, analyst at NSR and author of the report. "Besides providing means of differentiation for the satellite manufacturers and the launch services providers, these developments will considerably improve the value-proposition of space-based platforms.”

Recently, the company published another report where it stated that Aeronautical Satcom Markets, in-flight entertainment and connectivity will increase the use of satellite services in the coming years.

Edited by Rich Steeves

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