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VSAT Services Industry Breaks The $3 Billion Barrier
London - August 10, 2000

I want one - editor
A new report from COMSYS indicates that the annual VSAT service industry is valued at more than $3 billion. The study also predicts that terminal sales to the enterprise sector will more than double over the next five years as the shift by the major system vendors from hardware manufacturing to the service enterprise market gathers greater momentum.

The report titled VSAT Markets & Forecasts provides a full statistical analysis, financial breakdown and market forecast for the VSAT industry. Analysing all aspects of the industry including TDMA and DAMA systems, hardware and service revenues, operator market shares and regional forecasts up to 2006, the report provides a unique in-depth study of the financial dynamics that powers the industry.

"Over the last five years there has been evidence of an on-going shift in terminal deployment from private hubs to outsourced services. This has culminated to the point where 1999 results show an installed base of 250,000 service-based terminals compared to less than 150,000 for dedicated systems," commented Simon Bull, author of the report, Senior COMSYS Consultant and previous Chairman of the Global VSAT Forum.

The star TDMA market has seen a good year with annual sales up 26 per cent. Regionally, Latin America led the charge with a 71 per cent increase in sales. North America followed suit with a further increase of 45 per cent on the previous year's total. These impressive results contribute to the three-year CAGR of 16 per cent - a consistent rise for the fourth consecutive year.

"The star TDMA market has reached a level of maturity that is well deserved. Consistent increases in sales figures are firstly, a result of exploitation of new, emerging markets and secondly, the stimulated demand resulting from continued reductions in hardware costs," said Bull.

However, the signs were not so promising for the mesh DAMA industry as sales remained weak resulting from unstable international markets and continued to drop for the second consecutive year.

"The contract led nature of the business reflects the same patterns we saw in the early years of the star TDMA data industry. However, unlike the star TDMA market, DAMA markets are less cohesive," added Bull.

However, growth for the industry as a whole is expected to be substantial over the next five years with North America predicted to be the front runner, leading with significantly increased sales resulting from large enterprise contracts and new service initiatives.

COMSYS predicts that by 2002, annual demand for the North American star TDMA market will exceed 100,000 terminals. Further growth is predicted to be experienced through other regions - again largely driven by Internet related sales combined with the enterprise sector, representing significant untapped potential for VSAT plays.

"The major terrestrial service providers have failed to address the needs of the SME sector due to lack of necessary coverage, inflated cost and insufficient platform continuity. VSAT technology is ideally suited to fill this niche, and this niche is a prospect that runs into many, many millions of potential opportunities," Bull concluded.

The VSAT Markets & Forecasts Report is available from COMSYS Priced at �1500.

  • COMSYS Reports

     ViaSat To Buy Sci-Atlanta's VSAT Business
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