According to the report, the active MSS terminal base grew at a CAGR of 10 percent over the past five years with more than 2.9 million active MSS terminals deployed on a global basis in 2012. Revenues generated by the six active MSS operators stood at around $1.5 billion in 2012. The industry remains very concentrated with the leading three operators, Inmarsat, Iridium and Thuraya, still accounting for close to 90 percent, and Inmarsat alone having a market share of 55 percent.

“MSS wholesale service revenues grew at around 5 percent in 2012, strongly driven by MSS broadband as well as by the low-data-rate machine-to-machine (M2M) devices,” said Wei Li, Senior Consultant at Euroconsult. “M2M devices account now for more than half of total MSS terminals, however due to their much lower APRU levels they only accounted for ~13% of wholesale service revenues.”

Troop withdrawal, Ku-band VSAT competition and the anticipated migration towards new generation Global Xpress Ka-band services will limit the revenue growth potential for the L-band business in the next decade. Nevertheless, the bulk of MSS customers will remain satisfied with the L-band business, and a range of emerging applications are entering into a fast growing phase for the next 10 years.

Overall the MSS sector has been strongly diversifying its product and service portfolio over the past years to reach an increasing number of addressable markets including the maritime, aeronautical, and land-mobile market. More enhanced MSS products will become available once MSS operators have completed their next generation satellite systems. While Globalstar has already launched its 2nd generation satellite constellation in 2013, and after Inmarsat’s launch of its Alphasat satellite in July 2013, Orbcomm is expected to launch its 2nd generation constellation in 2014 and Iridium over 2015-17.

Looking forward, Euroconsult forecasts that the MSS market will grow at an annual rate of 12 percent in number of terminals from 2.9 million in 2012 to close to 9.4 million active terminals by 2022. Wholesale service revenues are projected to grow at a 10 year CAGR of 5 percent over 2012 to 2022.

“The Market is likely to remain dominated by North America, but we also see strong growth in emerging markets, notably in Asia,“ concluded Li. “Land should be the largest market segment by 2022 with over $1 billion in wholesale service revenue, while the aeronautical segment will be the fastest growing vertical market in terms of revenue, with double-digit growth in service revenue over the coming decade.”