Demand for communications and other services helped drive a strong 2008 performance for the satellite sector. Via Satellite takes a closer look at developments that shaped the business and how some of those factors, such as long-term contracts and increased demand, will help keep satellite players in the black through a tougher economic climate.
Global satellite industry revenues were $144.4 billion in 2008, up 19 percent from 2007, according to the "State of the Satellite Industry Report" prepared for the Satellite Industry Association (SIA) by Futron Corp. Revenues have nearly doubled from $74 billion in 2003, as the industry has averaged annual growth of more than 14 percent during this period.
"The satellite industry continued to post growth in 2008, led by satellite services and ground equipment sales," says Patricia Cooper, president of SIA. "The results for the past year are encouraging and frame the need for policy decisions that can affect the industry’s future growth such as export controls, broadband stimulus and U.S. government communications requirements."
Futron conducted the study for SIA, polling more than 70 satellite companies to determine aggregate revenues in each of the satellite industry’s sectors: satellite services, satellite manufacturing, launch industry and ground equipment.
Revenues derived from satellite services improved 16 percent, moving from $72.6 million in 2007 to $84 million in 2008, and accounted for 58 percent of total revenues, according to the study. Satellite services also have more than doubled in the last six years. The increase has been fuelled by growth in satellite television services. The sector accounted for $64.9 billion in revenues in 2008, and satellite television services now have more than 130 million subscribers around the globe, a 30 percent increase compared to 2007.
Transponder agreements accounting for $10.2 billion of a total of $14.5 billion in fixed satellite services revenues. Transponder agreements saw 6 percent growth since 2007. Managed networks services, which include VSAT services, contributed $2.8 billion in revenues, while end-user broadband revenues doubled from $400 million in 2007 to $800 million in 2008.
The ground equipment segment also has recorded huge gains throughout the last five years, reaching $46 billion in 2008, compared to $34.3 billion in 2007. Consumer-oriented products, including satellite TV and broadband, mobile satellite, and GPS devices, led the growth in this sector.
Launch industry revenues improved 20 percent to $3.9 billion, with the growth attributed to an increase in launch prices. Satellite manufacturing revenues fell from $11.6 billion in 2007 to $10.5 billion in 2008 due to fewer satellite launches. This was the second consecutive year satellite manufacturing revenues have fallen. The sector remains above its 2003 and 2004 figures but now accounts for only 7 percent of total satellite industry revenues, down from 13 percent in 2003.
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