WILMINGTON, DE--(Marketwired - Apr 29, 2015) - NSR's newly released Wireless Backhaul via Satellite, 9th Edition finds the industry being impacted by the much deliberated Non-GEO-HTS programs, specifically LEO-HTS presenting both challenges and opportunities for the industry. A diverse set of market segments are expected to grow at mixed levels, with current and next-generation solutions carving unique value propositions leading to healthy revenue streams from $1.7 billion in 2014 to $5.3 billion by 2024.
Different market offerings have and will target all market segments, posing risks and rewards:
- Traditional FSS capacity in C-band and Ku-band has been the most prevalent solution used thus far for backhaul and trunking in land areas and has begun to address the need for 3G services. It has likewise made a compelling business case for Mobility Platforms in the maritime and aeronautical sectors, serving the needs of high-paying passengers for the provision of WiFi services.
- GEO-HTS capacity is making a big push on land, air and sea where a clear migration in the Fixed Land Towers backhaul and Trunking markets are underway. Less expensive and higher throughput capacity is challenging the economics of Traditional FSS where erosion of the revenue base is leading to an "HTS play" by operators that own Traditional FSS transponders.
- Finally, Non-GEO-HTS, which is in its infancy, promises better latency and here, O3b is making inroads in backhaul, trunking and Mobility Platforms. LEO-HTS is still in the planning stages. Few details on LEO-HTS programs have been released but what is known is that if one or two programs are launched, total capacity will increase many-fold that at a minimum will lead to price pressure for all offerings.
The LEO-HTS entrance, especially when backed by heavyweights such as Google, SpaceX, Virgin and others, has captured the imagination of the industry leading to a mixed reaction of excitement on one hand and a bit of confusion on the other. With so many satellites and so much capacity to be launched, many questions have arisen on program viability in terms of both launching the systems and gaining positive ROI if the systems do launch.
In satellite backhaul, the touted game change will have to come in the form of cheaper capacity, which LEO-HTS programs can certainly address. "Equipment, specifically antenna systems will have to come down dramatically compared to current O3b price levels in order to address CAPEX considerations," according to the study's author Jose Del Rosario, Research Director for NSR. "More importantly, although backhaul is a large and growing market, other applications will have to be targeted by LEO-HTS systems as the market opportunity is relatively limited given that all systems will be going after this market space. Incumbents will surely respond to the LEO-HTS threat in terms of lowering their own price offerings such that the LEO-HTS impact until 2024 will likely be limited."
The report outlines base year data and long term forecasts per service offering on various market segments as well as an assessment of current and next-generation solutions. Key metrics such as in-service units, wholesale & retail revenues, capacity requirements and equipment shipments are quantitatively and qualitatively assessed, enabling effective assessment of market challenges and growth potential.
About the Report
In its 9th Edition, NSR's annual report continues industry-leading tracking and analysis of the Wireless Backhaul via Satellite (WBS) market. With more added value and unique analysis than ever before, the report provides a complete and comprehensive analysis of addressable markets, demand trends for the WBS market today, covering 10 regions and forecasting of equipment and capacity demand in the satellite Fixed Land Towers, Mobility Platforms, Trunking and Video Offload for the period 2014-2024. The report also assesses the prospects of LEO-HTS programs and their impact on the market. Wireless Backhaul via Satellite, 9th Edition is a multi-client report now available from NSR. For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com or call NSR at +1- 302-295-4981.
About NSR
NSR is a leading international market research and consulting firm with a core focus on the satellite sector and related industries. Founded in 2000 and with an experienced group of analysts located in all regions, NSR specializes in analysis of growth opportunities across four core sectors: Satellite Communications, Broadcasting & Digital Media, Hybrid & Emerging Applications and Commercial Space.