Cumulative revenues are projected to top $18.1 billion during the 2015 to 2025 time period, according to the new Land-Mobile via Satellite, 4th Edition (LMvS4) report from NSR.
The market is highly dependent on new products and timely launch of higher bandwidth satellites, which leverage increased bandwidth demand brought about by use of personal electronic devices in the field. The recent Iridium NEXT launch delays just adds to a growing list of ‘bad’ news that puts a damper on industry expectations.
The picture is far from depressed with more services using new capacity from GEO-HTS and eventually Non-GEO-HTS systems that give better cost-per-bit economics, which NSR estimates to add approx. $2.8 B in cumulative HTS retail revenues by 2025. The traditional satellite handheld business is still adding new subscribers, but the focus has shifted towards linking personal electronic devices to the world via satellite, which drives the addition of new products and multi-mode connectivity solutions such as consumer handhelds, hotspots and push-to-talk.
“The land-mobile via satellite market is impacted by recent economic woes, negative currency conversion factors, launch delays, unsuccessful product launches and low oil prices,” said Claude Rousseau, the Research Director at NSR and the report's co-author. “Despite this difficult context, total retail revenues were up in 2015/2016, and demand continues to rise in underserved and remote areas, which are core markets for the MSS industry in an increasingly competitive market."
According to Dallas Kasaboski, an NSR Analyst and the report's co-author, land-mobile is leveraged best when it offers a reliable, cost-effective, solution for customers who require access in remote or changing locales. As such, there are opportunities in market verticals such as utilities, forestry, mining, and even high-speed trains in remote locations.