The global Fixed Satellite Services (FSS) market is poised for a quantum shift owing to the emergence of satellite service industry over the next six years. Fixed Satellite Service is a radio-communication service between ground stations at a given position which is fixed to a specific area, which uses Very Small Aperture Terminal (VSAT) technology for providing high speed communication to the end-users. The FSS works on bands such as Ka-band, X-band, and C-band which aids in offering superior services on the existing networks.
Seamless transmission of data to end-user location from ground fixed station is possible due to rise in the utilization of transponder leasing agreement which is expected to drive the Fixed Satellite Services market over the next six years.
The satellites required for FSS require low power output which is expected to fuel market demand over the forecast period. FSS offers high speed of initiating service and avoids transit charges which are projected to proliferate market growth. Further, it provides cost effectiveness, high reliability, and performance which are further anticipated to positively impact market growth.
FSS has improved the real-time customer experience along with helping the service providers in reducing the time to market new products which is a notable shift in trend anticipated to provide lucrative growth opportunity through to 2022. FSS solutions sufficiently serve its customers with the allocated spectrum and create backup for fiber optics cable, making satellite communication the optimum choice for multi-point communication. These solutions offer reliable and secured connectivity, meeting the requirements of the users which are further anticipated to augment market growth over the forecast period.
Increased spending on telecom/voice backhaul, enterprise and broadband connectivity, content and broadcast delivery, business, and emergency continuity solutions along with military satellite communication is expected to drive global demand over the forecast period. Further, rise in the number of broadband subscribers and HDTV channels along with acceleration of DTH TV platforms is expected to proliferate the Fixed Satellite Services market growth.
Rising demand for corporate enterprise networks and consumer broadband coupled with need for high-throughput connectivity in the oil & gas sector is projected to be the key driving forces for the FSS market. Increasing use of high throughput satellite (HTS) for broadband communication which offers frequency reuse and on-board processing along with double throughput capability than traditional FSS is estimated to offer prominent opportunities for market growth.
However, high capital investment for launching the satellite along with increasing competition from fiber-optic transmission cable networks is anticipated to serve as major restraints to the FSS market growth. Additionally, limited orbital locations and challenges related to deployment of application requiring critical role of ground station equipment vendors are foreseen to hamper the FSS market. However, governmental regulations pertaining to de-regulation and regulation constraints are expected to positively impact the FSS market.
The Fixed Satellite Services market can be segregated on the basis of service type, into TV channel broadcast, backhaul and trunking, wholesale FSS, enterprise and broadband network, managed FSS, and other services. The market can be categorized on the basis of organization size into small and medium business (SMB), small office home office (SOHO), and large enterprises. On the basis of vertical, the market can be classified into entertainment and media, education, government, IT, retail, oil & gas, aerospace & defense, logistics, and healthcare.
North America is expected to be the prominent region for the Fixed Satellite Services market. Increasing usage of Ka-band to serve the rising need for network-users, media and government is projected to drive the market in this region. The presence of a large customer base along with ever changing competitive and regulatory landscape is expected to drive the market in the Asia Pacific region.
Notable players in the market include Embratel's Star One, Eutelsat Communications, Telesat Holdings, SKY Perfect JSAT Holdings, Thaicom Public Company, Space-Communications, Nigerian Communications Satellites, Telenor Satellite Broadcasting, and Singapore Telecommunication Ltd. Synergies and collaboration between satellite operators for enhanced transponder utilization rates is an emerging trend in the market. Rising demand for FSS has led to fierce competition with various satellite launches from existing operators along with entry of new satellite operators.
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In order to ensure business continuity amidst the COVID-19 crisis, business organizations, especially in highly affected countries are allowing their employees to work from home. The increase in people working from home has led to a surge in demand for online video viewing, downloading, and communication through video conferencing, all of which are leading to increased network traffic and data usage. COVID-19 shall accelerate the demand for agile and flexible work styles and further push the adoption of communication services that tend to improve work-life balance. On the flip side, telecom regulators worldwide have postponed their plans of 5G spectrum auction amidst the global pandemic. This is expected to have an impact on the commercialization of commercial 5G standalone deployments and revenue generated through 5G services. The ongoing pandemic has forced telecom operators worldwide to test their network resiliency and revisit their planned investments, especially in 5G technology. The report will account for Covid19 as a key market contributor.