NSR’s VSAT and Broadband Satellite Markets 15th Edition report, just released, forecasts the global installed base for fixed VSATs to increase by 12.2 million by 2025, generating more than $133.7 billion in cumulative Service Revenues over the 2015-25 period—despite near term challenges, insatiable data demand and HTS capacity will ignite long term growth.
“The consumer broadband segment had another year of slow development, despite the massive addressable market still to be covered. Congested capacity over North America, and still underdeveloped retail channels in the rest of the world, were the main barriers,” said Lluc Palerm, NSR Senior Analyst and report author. “Even with these short-term challenges, NSR is optimistic about the medium and long-term prospects. New capacity over North America will enter service very soon adding to growth, while consolidation in Europe is creating stronger retail players accelerating sign ups. The Australian NBN program is rolling out with spectacular growth rates, new actors are populating the Latin American market, and innovative business models like Wi-Fi hotspots have the potential to unlock tremendous opportunities in Middle East & Africa and Asia.“
The Fixed Enterprise VSAT market also had another challenging year. Developed regions continue to face strong competition from ground networks and market saturation. Additionally, poor macroeconomic factors like currency exchange rates or commodity prices limited growth in emerging economies.
However, NSR sees some positive signs of a turnaround. Cheaper capacity prices are unlocking new markets like Mobile Backhaul, which will become the major driver for growth in the coming years generating over a Tbps of demand by 2025. Despite not returning to the number of shipments pre-slow down, most VSAT ground vendors are now back on a growth track. NSR forecasts the installed base for Fixed Enterprise VSATs to incorporate more than 1 million new sites generating $4.5 billion in net growth for annual service revenues.