Global Fixed Satellite Services (FSS) Market Ascends at a Healthy CAGR of 4.57%

Introduction

The global market for fixed satellite services (FSS) was valued at USD 18.27 billion in 2021, and it is anticipated to reach USD 27.32 billion by 2030 at a CAGR of 4.57%.

Radiocommunication services used between various earth stations are fixed satellite services or FSS. These satellite services use VSAT technology to transmit and receive phone calls and television signals. They have huge dish-style antennas and low power output for enhanced service reception. FSS systems, which offer services to many users at once, are deliberately positioned to cover a large region, enabling users to connect while travelling without losing signals. Governments, military institutions, and small and major business groups employ these systems globally.

Market Dynamics

Increasing numbers of households adopting DTH subscriptions and HDTV channels

Since smartphones have become more widely used, there has been significant growth in the demand for Direct to Home (DTH) services and the number of customers, which has led to a need for high-speed satellite Internet connectivity. Internet consumption has significantly increased due to the rising demand for mobile Internet and broadband services. The gradual uptake of DTH services via wired cable networks also boosts demand for fixed satellite systems. The demand for fixed satellite services systems is increasing as more people purchase high-end equipment and high-quality services, increasing the demand for digital DTH services. Other elements anticipated to contribute to the market's revenue growth include the growing popularity of High-Definition Television (HDTV) and associated services. Fixed satellite services and solutions offer secure, dependable, and improved connections that may be customized to meet customer needs. The high demand for fixed satellite services is caused by the growth of DTH TV platforms and the increase in HDTV channel subscriptions.

Increasing spending on military satellite communications

Satellite technologies are being adopted by the military and defence industries for remote sensing, communications, global positioning systems, and other applications. To secure communication for the US military globally, the US Air Force, for instance, runs Military Strategic and Tactical Relay (MILSTAR) satellite communication systems. China launched the TJS (Tongxin Jishu Shiyan) 7 military satellite in August 2021. The Chinese military uses the TJS satellites to gather intelligence and offer an early warning. Due to the widespread use of these satellite communications in many different applications, military satellite communications are increasing in expenditure. For instance, Defense Science and Technology Laboratory (Dstl) awarded a contract of USD 11.91 million to In-Space Missions Ltd in August 2021 for constructing the Titania satellite for use in military space communications.

Growth opportunities for the global fixed satellite services (FSS) market

An increase in demand for corporate enterprise networks and high-throughput connectivity

Over the projection period, demand for fixed satellite services is anticipated to be driven by rising investments in the telecom backhaul, enterprise and broadband connections, content and media delivery, and military satellite communication. Demand for corporate enterprise networks and high-speed connections in the oil and gas sector has increased. The key players in the market for FSS globally have received numerous growth prospects.

Regional analysis of the global fixed satellite services (FSS) market

Based on the region, the global market for fixed satellite services is broken down into North America, Asia-Pacific, Europe, Latin America, and the Middle East & Africa.

Throughout the projection period,

North America will hold the largest share of the market. Growing demand for bandwidth from high Internet services, rising use of satellite connectivity applications, and increased need for control systems and real-time satellite monitoring will fuel market expansion. 80% of the US population uses the Internet. Hence fixed satellite services are in high demand. Ku-band deployment for fixed satellite services to network consumers also helps to market growth.

Due to the adoption of multiple devices per home and increased trunking and backhauling, Europe's market is predicted to rise steadily throughout the projection period. Germany and the UK are the biggest markets for fixed-satellite services. OHB System is developing Germany's next Heinrich Hertz communications satellite for 2022.

Due to a large consumer base and a changing competitive and regulatory environment, Asia-Pacific will likely post a fast revenue CAGR. China, India, Japan, and South Korea plan to improve connections in the coming years. Expanding telecommunications and fixed satellite services also drive industry expansion.

Key Highlights

• The global market for fixed satellite services (FSS) was valued at USD 18.27 billion in 2021, and it is anticipated to reach USD 27.32 billion by 2030 at a CAGR of 4.57%.
• The global market for fixed satellite services is divided into four parts based on service type, organization size, industry vertical and region. Further, the market for fixed satellite services has been divided into several categories based on the type of service offered, including broadband and enterprise network, channel broadcast, backhaul services, wholesale, managed services, and others. The broadcast channel is predicted to have a higher revenue share during the forecast period.
• The market has been divided into small and medium businesses, small and home offices, and large enterprises based on the organization's size. The large enterprises category is anticipated to hold a larger market share throughout the projection period.
• The market has been divided into government, education, aerospace and defence, retail, oil and gas, telecom and IT, media and entertainment, and others based on industry verticals. The aerospace and defence segment dominated the market.
• The market is broken down into North America, Asia-Pacific, Europe, Latin America and the Middle East & Africa based on the region. North America dominated the market and will do so over the projection period.

Competitive Players

Competitive analysis of the global Fixed Satellite Services (FSS) Market

Some key players contributing majorly to the global fixed satellite services market are Eutelsat Communications S.A, Nigerian Communications Satellite Limited, Telesat Holdings, Intelsat S.A, Thaicom Public Company Limited, Arab Satellite Communications Organization, SES SA, SKY Perfect JSAT Group, Telenor Satellite AS, and Singapore Telecommunications Limited.

Recent Developments

Recent developments in some of the key players:

• Grab Holdings Ltd., a ride-hailing to payments business, and Singapore Telecommunications, the largest telecom company in Southeast Asia, bought a 16.3 per cent stake in PT Bank Fama International on January 21, 2022, pursuing banking opportunities in Indonesia.
• The strategic alliance between Intelsat and Gilat Satellite Networks in commercial aviation was enhanced on January 24, 2022. Intelsat will use the SkyEdge II-c system from Gilat to boost business and commercial aviation services throughout the region. According to Dave Bijur, Senior Vice President of Commercial Aviation at Intelsat, this partnership will significantly increase Intelsat's in-flight connectivity (IFC) revenue.
• Intelsat's largest integrated satellite operator in the world increased its partnership with SKY Perfect JSAT Corporation on February 02, 2022, to use the latter's JCSAT-1C High-throughput Satellites (HTS) over Asia-Pacific. The agreement enables airlines and clients to deliver an improved passenger experience on board planes through better Internet connection speeds.

Segmentation

Global Fixed Satellite Services (FSS) Market: Segmentation

By Service Type

• Broadband and Enterprise Network
• Channel Broadcast
• Backhaul Services
• Wholesale
• Managed Services

By Organization Size

• Small and Medium Businesses
• Small and Home Offices
• Large Enterprises

By Industry Vertical

• Government
• Education
• Aerospace and Defence
• Retail
• Oil and Gas
• Telecom and IT
• Media and Entertainment
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East & Africa