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Maritime satcoms to double in a decade – report

The value of the global maritime satellite communications market is set to double over the next decade, according to a new report from Euroconsult.

{mprestriction ids="1,2"}The Maritime Telecom Solutions by Satellite, Global Market Analysis & Forecasts report predicts a CAGR of 6 per cent in terminals and 8 per cent in revenue over the 10-year period, driven by increasing data communications needs and the launch of new generation High Throughput Satellite (HTS) systems.

Despite an unfavourable economic environment due to oversupply in merchant capacity and falling oil prices, Euroconsult says that the maritime satcom market has maintained its high growth in the last 12 months, with maritime VSAT expanding by 15 per cent in terminals and 9 per cent in revenues in the last year.

The global maritime satcom market reached an unprecedented level of 368,000 terminals, creating $816 million in revenue at the satellite operator level and close to $1.6 billion in revenue at the service provider level. A total of 7 Gbps of C- and Ku-band capacity was used for maritime VSAT business, compared to less than 2 Gbps in 2010.

“Shipping companies are now investing in cloud computing, big data analytics, automation and video streaming applications. Crew applications, in particular social media, have never ceased the growth of their bandwidth hunger,” said Wei Li, editor of the report.

“On the supply side, we see the ongoing launch of new generation HTS and conventional satellites giving downward pressure on capacity pricing and causing stronger competition in the sector. All maritime VSAT service providers are aggressively acquiring market share before the launch of Inmarsat Global Xpress.”

“Building global maritime beams requires substantial investment and all service providers need to have scale in their business to improve the profitability. In addition, the technical nature of HTS systems requires more investment of satellite operators in ground infrastructure and even end-user equipment. We see the sector becoming more consolidated both vertically and horizontally in the coming decade.”{/mprestriction}

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