High throughput satellite revs to reach $5.6BN by 2022

Joseph O'Halloran | 22-11-2013

Record numbers of high throughput satellites (HTS) and diverging investment strategies will enable operators adopting to drive market growth, according to research by Euroconsult.

The High Throughput Satellites: The Quest for Market Fit survey revealed that 33 HTS systems will be launched between 2014 and 2016, a record high compared with the total 31 HTS systems that were launched over the last decade. The analyst believes that the growing popularity of HTS systems will bring the total cumulative investment to over $12 billion, with total revenues from such capacity usage forecasted to grow to approximately $5.6 billion in 2022. This will generate over $33 billion in aggregate revenue between 2013 and 2022.

As a result of operators’ investments, global HTS capacity supply is projected to nearly triple over the next three years to reach 1,400Gbps in 2016. However, HTS capacity available to a single end-user in a given vertical market will not increase to the same extent as the available beam capacity differs between HTS systems.

Euroconsult expects multiplication of HTS systems over the coming years will unlock growth opportunities in all major market verticals with global demand for HTS capacity expected to grow from around 85Gbps in 2013 to nearly 980Gbps in 2022, a CAGR of more than 30%. Demand for video services is expected to grow to 46Gbps in 2022, with the majority of traffic carried in North America and Europe.

“The need for HTS capacity is undeniably growing in a world that is more and more connected and increasingly data thirsty,” said Nathan de Ruiter, senior consultant at Euroconsult. “HTS systems will not be a ‘one-size- fits-all’ solution but are designed to the meet the specific needs of the targeted vertical market.”