Euroconsult: New Applications, Bandwidth Shift to Drive 10-Year Aeronautical Market Growth

[Satellite TODAY Insider 03-10-11] Global aeronautical satellite communications market revenues improved about 25 percent to $1.3 billion in 2010 due to growing requirements from cockpit and cabin applications, according to a report from satellite research firm Euroconsult, issued March 9.
    According to Euroconsult Senior Consultant Wei Li, author of "Aeronautical Telecom Solutions by Satellite," the aeronautical satcom sector will continue to enjoy long-term growth, reaching $2.3 billion in bandwidth, terminals and value-added service revenues by 2020. Li said government users will continue to drive more than half of the sector’s total profits.
    "The market is being driven by everything from passenger Internet on commercial airliners to the bandwidth used in long-distance military operations. While commercial use will grow over the next decade, the government market for aeronautical satellite communications will grow just as rapidly and continue to represent the largest segment of the business," Li wrote.
    The government sector for aeronautical MSS satellite services includes use on military aircraft, reconnaissance and surveillance planes, head of state jets and helicopters, and unmanned aerial vehicles. A large majority of these services are provided via L-band, and Euroconsult expects that trend to continue during the next 10 years.
    However, Li said that revenues generated from FSS high-throughput Ku- and Ka-band VSAT services are expected to grow at double-digit rates during the next decade.
    "As a consequence, Ku-band satellite capacity usage is expected to grow by more than 400 percent in the next decade. … At the satellite operator level, overall revenues for both MSS and FSS operators are expected to grow from $210 million in 2010 to almost $670 million in 2020, for a compound annual growth rate of 12 percent. For equipment vendors, the total revenue for L-, Ku- and Ka-band equipment is expected to reach $866 million in 2020, with over 97,000 terminals in operation," Li said.

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