What was created out of necessity is now a way of life for both large, small and medium-sized enterprises. The U.S. private satellite network market accounts for 75 percent of installations worldwide. Deregulation, pent-up demand, globalization and technological advances have opened the marketplace to private satellite networks and although the U.S. remains as the foremost marketplace for the next several years, companies will begin to develop partnerships in most of the world’s largely untapped markets.
According to new research report from Frost & Sullivan, called U.S. Private Satellite Network Markets, the market is driven by the need for cost-effective communication networks for dispersed locations. Revenues are
expected to increase to about $728.3 million by the end of the forecast
period.
“Continuing developments are expected to result in many new applications.
For instance, Hughes Network Systems’ DirectPC, an 18-inch satellite dish, can be connected directly to a personal computer (PC), ” says Telecommunications Industry Analyst Jose del Rosario. “DirectPC can be used in conjunction with the conventional VSAT network; hence it can interconnect a wide range of networks ranging from the Internet to a satellite network. These developments are expected to transform the industry in the coming years, especially in the international markets with inadequate wireline infrastructures.”
In the space segment of the market, transponder demand, specifically Ku-
band transponders, are on the rise. Revenues are expected to increase
steadily within the forecast period with increased utilization of
geostationary satellite transponders.
The ground segment of the market is characterized by continued demand and
annual increases in unit shipment growth. A number of factors , including
substantial price declines, technological advancements, and a robust U.S.
economy have contributed to a steady increase in demand.
Market leaders vary by segment, but the majority are large, established
firms in the industry. Many firms, especially in the ground segment, struggle on the margins as they attempt to gain a foothold in a changing market where technology and competition have allowed small players to enter.
Mergers and acquisitions have not materialized over recent years, with the
exception of AT&T’s decision to exit the satellite market. AT&T’s space
segment was purchased by Loral Space and Communications, while the ground
segment was purchased by GE Capital Spacenet.
“Shared hub solutions have helped service providers achieve market
penetration because of the significant cost savings they offer,” says del
Rosario. “The exorbitant price of a dedicated hub had restricted deployment to organizations with extensive resources , but smaller companies can now share the cost and are expected to see private satellite networks as the answer to their communications needs.”
Market concentration has remained fairly stable, with most traditional
market leaders maintaining their rankings. Most players which have serviced
the U.S. market are also looking to expand to international markets.
Partnering and outsourcing are continuing and increasing trends in the
industry.
U.S. Private Satellite Network Markets includes vital information such as
shared hub revenue forecasts and trends, long-term projections of changes in
price and revenue growth, and competitive benchmarking data. This study offers the insight and tools necessary for developing a plan for market longevity.
The technologies reviewed include single channel per carrier (SCPS), time
division multiple access (TDMA), wide area network (WAN), local area network
(LAN), VSAT, two-way interactive VSAT, one-way data and audio VSAT, business
television, direct broadcast satellite (DBS), direct-to-home satellite service (DTH), hub, and low noise block converter.
This Telecommunications Industry research has integrated the Market
Engineering consulting philosophy into the entire research process. Critical phases of this research included: Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the telecommunications market.
Frost & Sullivan is an international marketing consulting company that
monitors the telecommunications for market trends, market measurements and
strategies. This ongoing research is utilized to update a series of research
publications such as #5646-60 World Commercial, Military and Science Satellite Markets, and to support industry participants with customized consulting needs.
