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Global fixed satellite service market: 5.4% CAGR growth forecast between 2012-16
Global Fixed Satellite Service Market 2012-2016 - a new market research report on 2014-03-26 08:23:01
The Global Fixed Satellite Service market is to grow at a CAGR of 5.44 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increasing demand for TV and video transponders. The Global Fixed Satellite Service market has also been witnessing the increasing number of value-enhanced services offered by FSS operators. However, the requirement for high CAPEX investment could pose a challenge to the growth of this market.
An increase in the utilization rate of transponders is one of the major trends being witnessed in the market in recent years. Due to government regulations and market consolidation, the capacity of the C-band and Ku-band is expected to decline by 3 percent during the forecast period. Hence, the transponder utilization of existing satellites will increase significantly. Similarly, the rate of transponder utilization has been increasing because of proper regulations for the management of desirable orbital slots. Furthermore, FSS operators are maximizing the value of their most precious, assigned, orbital slots by co-locating multiple satellites in the same slot. Hence, the increasing utilization rate of transponders is indirectly contributing to the growth of the market over the next few years.
One of the major drivers in this market is increasing demand for TV and video transponders. There are more than 30,500 TV channels worldwide at present; this number is expected is to grow at a CAGR of 45 percent during the forecast period. Similarly, the number of HDTV channels will increase at a rate of 20 percent during the forecast period. There will therefore be a huge requirement for FSS transponders for TV broadcasting, video broadcasting, and content provision over the next few years.
One of the major challenges in this market is the requirement for high capital investment. Currently, the cost for the design, launch, and insurance of a satellite is more than US$200 million. Further, the break-even period for such investment is more than 10 years.
The key vendors dominating this market space are Eutelsat Communications S.A., Intelsat Investment S.A., SES S.A., SKY Perfect JSAT Holdings Inc., Star One S.A., Telesat Holdings Inc., and Thaicom Public Company Ltd.
Other vendors are Space-Communications Ltd., APT Satellite Holdings Ltd., Arabsat Cyprus Ltd., Asia Broadcast Satellite Ltd., Asia Satellite Telecommunications Co. Ltd., Avanti Communications Group PLC., China Satellite Communications Co. Ltd., EchoStar Satellite Services LLC., JSC Gazprom Space Systems Inc., Hispasat, S.A., Intersputnik, Indian Space Research Organization, MEASAT Global Bhd., Nigerian Communications Satellites Ltd., Nilesat, Portugal Telecom, SGPS, S.A., Russia Satellite Communication Co., Satelites Mexicanos S.A., SingTel Optus Pty Ltd., and Telenor Satellite Broadcasting AS.
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