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Global enterprise VSAT market: 10.3% CAGR growth forecast between 2012-2016
Global Enterprise VSAT Market 2012-2016 - a new market research report on 2014-04-24 06:29:01
The Global Enterprise Very Small Aperture Terminal (VSAT) market is to grow at a CAGR of 10.27 percent over the period 2012-2016. One of the key factors contributing to this market growth is the high return on investment. The Global Enterprise VSAT market has also been witnessing the increasing adoption of routers that have both terrestrial and satellite capabilities. However, the requirement for high initial investment could pose a challenge to the growth of this market.

One of the recent trends being witnessed in the Global Enterprise VSAT market is the increasing adoption of hybrid routers with both terrestrial and satellite capabilities. Enterprises across the globe use terrestrial services for their day-to-day business functions. However, they also use VSAT services in case of a system outage. Spacenet developed a plug-in that is built into Cisco routers where the router will use a satellite connection in the case of a terrestrial connection failure. Advanced routing protocols such as virtual router redundancy protocol allow two routers be connected to the same network and provide a backup facility if one fails. Such advanced routing protocols allow network engineers to incorporate VSATs into their terrestrial networks. The network integration between VSAT and terrestrial networks is a new trend that is expected to augur well for the growth of the market during the forecast period.

One of the main drivers in this market is the high return on investments for the end-users. The core concept of VSAT deals with providing communication in remote areas and difficult terrains where terrestrial networks cannot be established. The enterprise VSAT is being used by mining enterprises and oil & gas exploring agencies for establishing communication networks in remote sites. VSATs are also used by multinational companies for intranet and internet access and by large enterprises for disaster recovery applications.

One of the major challenges in this market is the requirement for high initial investment. Enterprises need to have a proper infrastructure in place such as hubs, antennas, and other infrastructure before they can deploy VSAT services. The need for high initial investments renders VSATs unaffordable by the price-conscious SMEs.

The key vendors dominating this space include Gilat Satellite Networks Ltd., Hughes Network Systems LLC., VT iDirect, Inc., and ViaSat Inc. The other vendors mentioned Bharti Airtel Limited, Embratel Participacoes S.A., HCL Comnet ltd., ND SatCom GmbH, PolarSat Inc., Primesys Soluções Empresariais S.A., Signalhorn AG, SkyCasters LLC, Spacenet Inc., Tatanet Services Ltd., Telefonica S.A., Telesat Holdings Inc., Turksat Satellite Communication and Cable TV Operation A.S., and Verizon Business.

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