With respect to Covid-19 the report states that “In last year’s report, Euroconsult predicted a prolonged market downturn due to Covid and the more structural driver of eroding capacity revenue for video services. The new report validates that finding, reflecting a five percent decrease in market value in 2019 compared to 2020. However, while Covid had a significant impact on key growth markets such as connectivity for cruise ships, planes, and offshore oil platforms, the structural demand drivers for satellite connectivity remain strong, and a return to pre-Covid growth is projected in 2022.”
“Since the start of the current health crisis, the impact of COVID-19 has varied significantly by satcom market segment. With the number of people forced to work/study from home due to stay-at-home orders, the current crisis has demonstrated the importance of access to connectivity for all in order to effect sustainable development, economic growth, environmental sustainability and social inclusion. Consequently, the consumer broadband market is the only vertical to have observed a slight positive impact.”
“Other segments have overall been negatively impacted as temporary and, in some cases, still ongoing supply chain issues have caused delays in new project roll-outs. Given the state of the situation in 3Q 2021, recovery to pre-COVID-19 levels is not expected before 2022 at the earliest for some segments. Key growth markets such as Aero IFC, Cruise and offshore Oil & Gas have been the most deeply impacted markets with a more uncertain time of recovery. A partial recovery is expected in 2021 for some markets like video contribution and enterprise networks. In the case of the video distribution market, the COVID-19 crisis has likely only accelerated the move towards OTT viewing.”
NGSO (still) driving the market
It should surprise no one that non-geostationary orbit (NGSO) satellite constellations are driving revenue growth.
Nathan De Ruiter, managing director of Euroconsult Canada states that “NGSO constellations continue to gain momentum, as demonstrated by the past year’s new satellite orders and launches. Starlink began commercial service and both OneWeb and Telesat Lightspeed secured additional investment. Our report found that NGSOs accounted for 97 percent of the supply added in 2020, resulting from satellites launched by both Starlink and OneWeb.”
Dimitri Buchs, senior consultant at Euroconsult added “To achieve market growth projections, satellite operators need to deeper integrate into terrestrial networks. We expect digitalization or ‘smartification’ of satellite communication networks to play a key role in achieving network convergence. Heightened network efficiency will enable new user applications and will unlock new market opportunities in under-served areas.”
The full report starts at €7,000.