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Mobile Satellite Market Poised for Sustained Growth

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The Mobile Satellite Market is expected to sustain its current robust growth by serving users with a mix of MSS, FSS and HTS based solutions, according to a report by NSR. Despite recent results that were less than stellar in the satellite handheld business, the mobile satellite market will reach milestones such as 1 million in service units for the land mobile sector and impressive growth for maritime and aeronautical service over the next ten years.

Mobile satellite market growth will be led by data units on the equipment side and broadband VSATs on the service side. A growing number of bandwidth-hungry users in the maritime and aeronautical segments, along with smaller and cheaper units in the land-mobile segment, will drive growth. Overall, mobile satellite growth will continue at a consistent pace.

"In the next ten years, the global mobile satellite market is expected to reach revenues of $10.3 billion from 2.3 million in-service units, of which the vast majority will be small data units," stated Claude Rousseau, NSR Senior Analyst and author of the study. "Meanwhile, four times more VSATs are expected to be put in service generating new demand for over 200 additional transponders," continued Rousseau.

A slew of recent contracts clear the sky for more broadband access on commercial airplanes that will drive double-digit satellite mobility growth. The introduction of high-throughput satellites (HTS) in the global mobility market will challenge traditional MSS players with huge supplies of capacity at a lower cost per bit. But the land-mobile narrowband services segment remains the time-honored MSS market leader, with a solid base of subscribers that will provide one-third of overall MSS revenues over the next ten years.

Finally, the recent slowdown in some parts of the maritime market did not impact service revenues as much as expected, and NSR sees the maritime sector as a key growth area for both MSS and FSS operators alike.

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