Joseph O'Halloran | 10-09-2013
The satellite market is in transition, driven by emerging regions and high throughput, but HTS platforms and emerging regions are the next growth areas according to research by Euroconsult.
The "Satellite Communications & Broadcasting Markets Survey, Forecasts to 2022" report found that the 2012 satellite arena was marked by lower growth in capacity demand, increased competition and pointed to a market transitioning into a new environment with increased competition between satellite operators and greater uncertainty on demand usage and associated pricing conditions. It believes that this competition results from investments by both leading operators and established regional operators, and from the emergence of new national systems in emerging regions.
Euroconsult paints a picture of a market defined by M&A activity — such as Arabsat acquiring Hellas Sat, and Eutelsat buying Sat-GE and Satmex — and consolidation led by strategic investors seeking better access to growth opportunities. It calculates that fixed service satellite (FSS) revenues reached $12 billion in 2012 with the average adjusted EBITDA margin growing slightly to just over 75%.
Furthermore, it expects overall revenues from regular capacity to grow by 2.9% over the next ten years, surpassing the $14.7 billion mark by 2022 and the market value of HTS capacity to triple within the next two years to reach $1.6 billion by 2014.
Yet despite the fact that such opportunities exist, Euroconsult warns that they will not be realised unless operators have the ability to adapt their current strategies. “2012 saw a global capacity growth rate slightly over 4%, a similar rate to that of 2011 but lower than growth observed in the five previous years. Regular transponder capacity saw 1.9% growth over that of 2011, a ten-year low,” said Pacôme Revillon, CEO at Euroconsult.
“A large part of the revenue growth will depend on the ability of operators to support the development of new services and usage, and on their positioning with regards to terrestrial networks and non-commercial satellite systems.”