The NGSO (non-geostationary orbit) satellite constellation sector is providing a huge boost to the overall satellite market, and its market value will double between 2020 and 2030, according to consulting and market intelligence firm Euroconsult. With OneWeb on the rise and Elon Musk’s Starlink constellation almost certain to intensify from its beta stage, the (NGSO) satellite constellation sector is providing a huge spur to the overall satellite market.
According to Euroconsult’s analysis, Satellite connectivity and video market, the satellite connectivity as well as the video market are expected to exceed $20 billion in value by 2030, with NGSO capacity accounting for more than three-quarters of that growth.
The research contains historical trend measurements and analysis for the years 2016 to 2020, as well as anticipated statistics and trends for 2020 to 2030. It examines market trends in 6 categories: cellular backhaul and trucking, video distribution and contribution, mobility, milsatcom, enterprise networks, and consumer broadband, and it covers 13 geographical regions.
Euroconsult forecast a lengthy market slump in 2020 owing to Covid and more structural causes of decreasing capacity income for video services in a similar analysis. This is supported by the new data, which shows a 5% drop in market value in the year 2019 compared to 2020.
While the study concluded that Covid had a substantial impact on key growth areas like a connection for planes, cruise ships, and offshore oil facilities, it also found that the structural market drivers for the satellite connectivity continue to be strong and that growth will revert to pre-Covid levels by 2022.
The growing dominance of the NGSO satellites was reflected in the supply prediction, with NGSO accounting for around 90% of the total supply expected to be added within the next five years. Euroconsult also expects total global capacity supply (such as all orbits) to rapidly increase from 3.7 Tbps in 2020 to 23 Tbps in 2022 and to exceed 50 Tbps in 2026 as more constellations come online.
“NGSO constellations are gaining traction, as evidenced by new satellite purchases and launches over the last year,” stated Nathan De Ruiter, who serves as the managing director in charge of the Euroconsult Canada. “Starlink launched its commercial service, and Telesat Lightspeed and OneWeb both received more funding. According to the research, NGSOs will contribute for 97 percent of new supply in 2020, thanks to satellites deployed by both OneWeb and Starlink.”
According to the research, the largest market prospect for satellite connection is to connect the unconnected. This involves providing coverage to remote places, cellular backhaul, community hotspots, and supporting individuals on the go. According to Euroconsult, over 250,000 commercial vessels and planes are now operating outside of terrestrial network coverage, with just 15% of these using satellite for broadband connectivity.