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Satcom market to hit $19.4 billion by 2028

The satellite communications market is finally picking up, after a long decline since 2014. Driven by the demand for broadband applications, including rural connectivity, in-flight communications and cellular backhaul, satellite-based applications are predicted to grow to US$19.4 billion by 2028.

This bold prediction was released by Euroconsult, a leading international research firm, which also forecasts a return to revenue growth beginning in 2020.

“A confluence of market and technology forces has contributed to a period of great turbulence in the satellite industry,” said Nathan de Ruiter, managing director of Euroconsult Canada and editor of the Satellite Connectivity and Video Markets Survey.

“Traffic over satellite continued to increase to nearly 1.3Tbps in 2018; however, this did not drive revenue growth because of reductions in capacity pricing across all regions.

“While headwinds continue to persist in 2019, it is encouraging that our findings point to a return to revenue growth next year.”

The survey looked into the details of the forces impacting the satellite industry, such as business models, user requirements, technologies and the competitive landscape.

The report also differentiates between traffic flowing over geostationary (GEO) satellites versus Low Earth Orbit (LEO) constellations, and it includes market intelligence on capacity pricing and impact on revenues for each class of service.

Findings are illustrated by insightful infographics for a quick snapshot of how market forces are changing and forecast growth trends, allowing business planning and investments decisions.

The report suggests that post-2022, the satcom market should enter into an era of market expansion, driven by anticipated demand elasticity in price-sensitive verticals, such as consumer broadband access and cellular backhaul.

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