SOURCE: NSR

NSR

September 12, 2014 01:00 ET

HTS Revenues to Overtake FSS in Battleground Applications

GEO-HTS Revenues of $250M in 2013 to Exceed $3.5B by 2023, Representing 30% CAGR

WILMINGTON, DE and LONDON, UNITED KINGDOM--(Marketwired - Sep 12, 2014) - High-Throughput Satellites (HTS) has oftentimes been synonymous with consumer broadband services in developed countries; however, NSR's Global Satellite Capacity Supply & Demand, 11th Edition report forecasts HTS revenues for key applications overtaking traditional FSS C-, Ku-, and Ka-band revenues by 2023.

In terms of raw capacity measured in Gbps, demand will indeed be most strongly buoyed by Consumer Broadband services, which will be concentrated largely in North America and Western Europe. However, when looking at revenues a very different picture emerges, only 25% of HTS revenues come from consumer broadband. "We have known since the inception of HTS that these payloads will be ideal for consumer broadband, this is not surprising. What is interesting is while looking at applications such as commercial mobility, we are seeing HTS overtake traditional FSS by 2023 in terms of revenues," states Blaine Curcio, Senior Analyst at NSR and report co-author. "Further, we are seeing a lot more momentum for applications like Enterprise Data, for which HTS is seeing revenue CAGRs of more than 20%, compared to less than 4% for Ku-band, for example, or negative growth for C-band," adds Curcio.

Part of this explosion in demand will undoubtedly come about due to a huge increase in HTS supply, which is expected to increase more than fourfold from less than 500 Gbps in 2013 to over 2 Terabits in 2023. "With such an increase in supply, operators will need to be creative in marketing this capacity to applications other than Broadband. The general theme of lower cost per bit as compared to FSS supply will be common," according to Prashant Butani, Senior Analyst at NSR and report co-author. A key sub-text will be that "Not all Supply is created Equal" which may allow for differentiated pricing. "The applications utilized will be strongly based on geography, with some regions being more suited for Broadband and others suited for battleground applications that include Commercial Mobility, Enterprise Data, and Government/Military," states Butani.

The Global Satellite Capacity Supply & Demand 11th Edition study continues a decade of in-depth and highly detailed assessments of commercial satellite capacity supply and demand analysis as well as introducing many industry firsts, continued assessment of Medium Earth Orbit-High Throughput Satellite (MEO-HTS) constellations, an Ultra HD market forecast for each of the 10 regions in which Ultra HD is expected to be broadcast, and complete coverage of the High Throughput Satellite market for which NSR has pioneered research efforts for half a decade.

About the Report
The Global Satellite Capacity Supply & Demand, 11th Edition provides a wealth of data and analysis from the very top line global trends to highly detailed and granular assessments of supply and demand trends for eight separate applications in each of five different types of capacity (C-band, Ku-band, widebeam Ka-band, HTS, MEO-HTS) for twelve individual regions. Supplemented by nearly 500 tables and charts within the integral client Excel data sheets, the report provides the most comprehensive and detailed data and analysis available to the industry. Also included is an industry-first Webinar Document that summarizes all key elements of the report in a presentation format with audio commentary from the authors of the report. NSR led the industry in introducing the assessment and forecasting of commercial services using High Throughput Satellite (HTS) and Medium Earth Orbit-High Throughput Satellites (MEO-HTS) capacity as well as being one of the first to make specific projections for growth in UltraHD and 3D channels within the video distribution and DTH markets.

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.