UK: The sixth edition report of NSR’s Satellite Manufacturing and Launch Services identifies non-GEO markets as the leading growth opportunities for manufacturing and launch in the next ten years. Released on Monday, the report predicts a cumulative revenue generation exceeding $175 billion of the $285 billion total market in next ten years. However, it maintains that GEO markets will remain a key source of revenue as commercial GEO communications will continue to be the highest value market segment at a stable $6 billion per year.
Both government and commercial players contributed to this sluggish market. "Ensuring ROI was the focal point of 2015 – commercial operators in particular were hesitant to commit to additional investments in the face of declining capacity prices, new market entrants, and an uncertain launch environment," explained Carolyn Belle, NSR Senior Analyst and report author. "Mounting complexity of satellite design and capabilities, alongside more in-depth verification of the long-term business case of a procurement, reflects the increasingly competitive nature of the satellite industry moving forward."
In the report, NSR forecasts over 1,800 satellites will be launched globally during the next decade, half of which will be part of a commercial Communications or Earth Observation constellation. "Growth in end user applications, fueled by constant connectivity requirements, Big Data, and strained security environments, is creating new opportunities in the satellite manufacturing and launch market," said Belle. Emerging players are introducing disruption across the value chain while traditional manufacturers and launch service providers adapt their experience to evolving customer needs.
For those that achieve the right blend of technology, understanding of customer needs, and company culture, demand for satellite manufacturing and launch services offers healthy opportunities in the coming decade.
Source: Market Wired