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$2.1 Billion Opportunity Is Silver Lining for Satellite Operators Concerned With Mounting Pricing Pressure
CAMBRIDGE, MA--(Marketwired - Mar 15, 2016) - NSR's Wireless Backhaul via Satellite 10th Edition report, released today, forecasts the global installed base of satellite backhaul sites will surpass 67,000 by 2025 and will generate US$2.1 billion in revenues. Mobile Backhaul will generate the majority of growth led by Asia and Sub-Saharan Africa. The new vertical IP Content Distribution, serving capacity offload and content distribution to CDNs, will take some time to develop but could potentially become a strategic application for the industry.
"The overall satellite ecosystem is changing rapidly. Despite growth in active sites remaining at single-digit rates, the industry can generate impressive IP growth via new price points offered by HTS capacity," stated Lluc Palerm, NSR Analyst and report author. "Business models need to adapt as MNOs and ISPs are less focused on infrastructure management and end-to-end solutions grow. The global telecom environment is constantly evolving, and the satellite industry is finding new applications as CDN traffic grows and ground networks become congested."
As drivers change from USO projects to economical return of higher-margin sites, the largest opportunity lies in monetizing the emerging demand for 3G and 4G sites through bandwidth provisioning and services. The uncovered addressable market is still significant in regions like Asia, Sub-Saharan Africa or Central & Eastern Europe. Regions such as Latin America are more mature, but this is fostering an earlier transition to Mobile Broadband backhaul while other regions are still rolling out 2G networks.
The migration to 4G and eventually to 5G creates new opportunities for the satellite industry. 4G includes protocols for broadcasting content and some MNOs are looking into bundling Mobile TV with their offers. With 5G, content will need to move to the edge, creating massive opportunities for content multicasting from satellite.
About the Report
Wireless Backhaul via Satellite, 10th Edition study is an industry leading analysis and forecast of 3 key market segments: Mobile Wireless Backhaul, Trunking and the newly added IP Content Distribution. The study assesses the installed base of sites in seven different regional markets, investigates trends impacting market growth, forecasts capacity and equipment revenues, and predicts satellite capacity requirements for provisioning each market vertical. Beyond classic C-, Ku- and Ka-band FSS capacity, NSR also leads the industry in forecasting use of High Throughput Satellites (HTS) segmented by band (C-, Ku- & Ka-bands) for GEO-HTS systems and assesses the impact of Non-GEO HTS constellations in the Backhaul markets. 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 617-674-7743.
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.