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Overview of the fixed satellite service (FSS) market
According to the market research analysts at Technavio, the global fixed satellite service (FSS) market is anticipated to grow steadily at a CAGR of nearly 6% over the forecast period. With the increasing number of broadband and DTH subscriptions, the market for fixed satellite service is anticipated to have a positive outlook in the coming years. The number of broadband subscribers in MEA and APAC countries has increased significantly over the last few years, resulting in intense competition for satellite launches among FSS operators. The large subscriber base in countries like India and China, along with the ever-changing regulatory and competitive landscape of the market has led to an augmented demand for FSS solutions.
Most FSS operators these days are adopting new business models that enable them to offer value-enhanced services like uplink services, teleports, private networks through VSATs, and data multicasting to their customers. The majority of operators either enter into partnerships or purchase ground stations across the globe to offer these services. Moreover, FSS operators are selling end-to-end solutions instead of transponder capacity and can manage IP-based services such as IP trunking and broadband. This trend is gaining significant traction in the market, which is expected to spur the growth prospects of this market over the next four years.
Competitive landscape and key vendors
The global FSS market comprises operators that own and operate satellites and lease out the transponder capacity on these satellites to TV channel broadcasters, radio broadcasters, content and video providers, internet service providers, and government and military organizations. Several operators are entering into strategic partnerships to grow organically and reduce their financial and market risks. Moreover, many well-established operators like Intelsat, SES, and Telesat are adopting M&A strategies to enhance their network coverage. The competition among the FSS operators is increasing over the past few years.
Key vendors in this market are -
- Embratel Star One
- Eutelsat Communications
- SKY Perfect JSAT
Other prominent vendors in the market include ABS, APT Satellite Holdings, Arabsat Cyprus, AsiaSat, Azercosmos, China Satellite Communications (ChinaSatcom), Comtech Telecommunications, EchoStar Satellite Services, Es’hailSat, Hispasat, Indian Space Research Organization, Intersputnik, JSC Gazprom Space Systems, MEASAT Global, Nilesat, O3b Networks, Russia Satellite Communication, SingTel Optus, Telenor Satellite Broadcasting, and The Avanti Communications Group.
Segmentation by service category and analysis of the FSS market
- Managed services
- Wholesale services
During 2015, the wholesale services segment held the majority of the market shares and is likely to lead to lead in the market during the predicted period. The wholesale services segment consists of TV channel broadcast, content and video distribution, telecom backhaul, broadband services, and military satellite communication. According to the industry analysts, revenue from broadband services, telecom backhaul, TV channel broadcast, and content and video distribution will grow at a significant pace due to the high adoption of broadband services, increased mobile data usage and deployment of 3G/4G networks worldwide, and demand for video content.
Geographical segmentation and analysis of the FSS market
In terms of geography, the EMEA region was the highest revenue contributor in the global FSS market and is expected to continue its dominance until the end of 2020. The increasing adoption of Ka-band to fulfill the growing needs of government and small and medium enterprises will bring about market growth in Western European countries like Norway, Sweden, Finland, Denmark, the Netherlands, Belgium, Germany, Austria, Switzerland, and the UK. Moreover, the increasing penetration of broadband services and the rise in a number of HD channels in Middle Eastern countries has increased the adoption of HDTV and use of satellites in media and entertainment as well as military applications.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global FSS market?
- What are the key market trends impacting the growth of the global FSS market?
- What are the challenges to market growth?
- Who are the key vendors in the global FSS market?
- What are the market opportunities and threats faced by the vendors in the global FSS market?
- What are the trending factors influencing the market shares of the Americas, APAC, and EMEA?
- What are the key outcomes of the five forces analysis of the global FSS market?
Technavio also offers customization on reports based on specific client requirement.