Futron Sees Innovation & Evolving Business Practices Driving Satellite Business
Nov 3, 2010
Bethesda, Maryland, November 3, 2010 - The 2010 Futron Forecast of Global Demand for Satellite Services, released today, presents a picture of an industry in transition, showing solid continued growth but with a range of possible futures, and success dependent on the willingness of satellite operators to innovate not only in the way they buy and sell satellite capacity, but in the way they plan and measure their business performance.
Innovation is the key buzzword of the satellite industry today, and will be a major force in driving future supply, demand and utilization of satellite capacity.
- The industry has demonstrated remarkable resilience in the face of the recent economic contraction without sacrificing deployment of new offerings and ongoing performance improvements.
- Operators are developing innovative approaches to how they buy, sell and optimize the use of their capacity.
- Creative partnerships are being established with satellite manufacturers, equipment providers, resellers, and customers – including everything from hosted payloads to hybrid network operations, to the repurposing of on-orbit assets for new services, new markets and new customers.
Building on these innovations and the industry’s demonstrated success in sustaining growth over time, at the macro level, the 2010 Futron Forecast – covering the ten years from 2010-2019, shows that the fixed satellite services business will continue to demonstrate steady and consistent growth around 4% throughout the forecast period, reaching just under 10,000 36 MHz transponder equivalents (TPEs) by the end of the decade. This reflects steady but somewhat more moderate rates of demand growth than in the recent past. The major drivers of demand fall along two distinct paths:
- In still-developing markets a key driver of growth is the remaining pockets of unmet demand the continuing appetite for new and expanded capacity to facilitate the deployment of a robust portfolio of services.
- In more developed markets there is a push to take advantage of newer, higher power capacity to introduce an increasing wide range of innovative services.
Recognizing that the development of the future market is subject to a significant number of uniquely significant potential variables, Futron’s analysis provides a range of possible futures: a baseline forecast coupled with high and low growth scenarios. While the upper and lower bound scenarios provide a composite range of growth which captures the impact of diverse external forces and specific market variables, the summary presented here focuses on the baseline forecast.
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