Fixed Satellite Services (FSS) Market

Market Overview

The global fixed satellite services (FSS) market size 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%.

 Fixed satellite services, often referred to by their acronym FSS, are a type of radiocommunication service utilized between several earth stations. These satellite services utilize the VSAT technology to send and receive telephone calls and television signals.

They have a low power output but a big dish-style antenna that improves service reception, allowing them to receive more signals. Users can communicate while travelling without fear of losing signals because of the strategic placement of FSS systems, designed to accommodate several users simultaneously and deliver services to many users concurrently. Consequently, these systems are utilized by governmental institutions, organizations within the armed forces, and small and major commercial enterprises globally.

Market Dynamics

Global Fixed Satellite Services (FSS) Market Drivers

Increasing numbers of households adopting DTH subscriptions and HDTV channels

Because more people are using smartphones, there is a growing demand for high-speed satellite Internet connectivity, which has resulted in an increase in demand for Direct-to-Home (DTH) services and an increase in the number of subscribers. This demand has increased substantially over the past few years. Internet usage has significantly increased as a direct result of the rising demand for mobile internet and broadband services, which have contributed to the rise in popularity of the internet. Additionally, there is a progressive growth in the adoption of DTH services over wired cable networks, which drives demand for fixed satellite systems. Increasing levels of discretionary money globally are leading to increased customers purchasing high-end equipment and opting for high-quality services, a spike in demand for digital DTH services, and a driving need for fixed satellite services systems. In addition, the increasing use of high-definition television (HDTV) and related services is anticipated to be another driver that will drive market revenue growth. Fixed satellite services and solutions offer a connection that is secure, dependable, and superior, as well as able to be adapted to satisfy the requirements of individual users. The rising demand for fixed satellite services is driven in part by an increase in the number of people subscribing to HDTV channels and by the emergence of various DTH TV platforms.

Increasing spending on military satellite communications

Satellite technologies are increasingly being adopted by the military and defence sectors for various applications, including remote sensing, telecommunications, global positioning systems, and others. As an illustration, the United States Air Force runs satellite communication systems known as Military Strategic and Tactical Relay (MILSTAR) to secure global communication for the United States military. China launched the TJS (Tongxin Jishu Shiyan 7) military satellite in August 2021. Early warning and information gathering are two primary functions the TJS satellites serve for the Chinese armed forces. Because of the widespread use of satellite communications in various contexts, there has been a considerable uptick in the amount of money put toward developing military satellite communication systems. For instance, in August of 2021, the Defense Science and Technology Laboratory (Dstl) awarded a contract to In-Space Missions Ltd. for the sum of 11.91 million US dollars to construct the Titania satellite for use in military space communications.

Global Fixed Satellite Services (FSS) Market Opportunities

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

Demand for fixed satellite services is anticipated to be driven throughout the projection period by rising spending on military satellite communication, telecom backhaul, content and broadcast delivery, and enterprise and broadband connections. Within the oil and gas business, there has been a discernible uptick in the level of interest shown in high-throughput connections and corporate enterprise networks. Because of this, the key players in the worldwide FSS market have been presented with several prospects for expansion.

Global Fixed Satellite Services (FSS) Market Restraints

High construction costs and rising use of fibre optic transmission connections

Two significant barriers to the broad implementation of fixed satellite services are the high construction costs and the rising use of fibre optic transmission connections. Furthermore, it could be challenging for new businesses to enter the industry under study because of rigorous government regulations and limited orbital positions. Synergies and cooperation among satellite operators to increase transponder usage rates is a recent market trend. As FSS demand has increased, there has been an intense rivalry, which has resulted in additional satellites being launched by current providers and new satellite operators entering the market.

Regional Analysis

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.

During the projection period, the market in North America is anticipated to have the most significant revenue share in the global market. Increased demand for bandwidth brought on by high-speed Internet services, rising adoption of satellite connectivity applications, and rising demand for real-time monitoring and control systems that can be accessed via satellites are predicted to propel market revenue growth. Since 80% of Americans use the internet, there is a massive demand for fixed satellite services in the country. Additionally, the market for fixed satellite services is growing in terms of income thanks to improvements in the deployment of Ku-band for providing fixed satellite services to network users.

The adoption of several devices per household and the use of essential business communication lines like trunking and backhauling is expected to increase demand for broadband access in Europe throughout the projected period. The UK is the second-largest market for fixed satellite services after Germany. For instance, the following Heinrich Hertz communications satellite from Germany is being developed by OHB System and will be launched into geostationary orbit in 2022.

Due to a large consumer base and an ever-changing competitive and regulatory environment, Asia-Pacific is anticipated to record a very fast revenue CAGR over the projection period. In the coming years, governments in nations like China, India, Japan, and South Korea want to increase their connectivity. Additionally, the market income is increasing due to the developing telecommunications industry and rising fixed-satellite service investment.

Segmental Analysis

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. Due to the increasing demand for direct-to-home satellite broadcasting services, the channel broadcast segment is predicted to have a higher revenue share during the forecast period than other service-type segments. This segment's revenue growth is anticipated to be fueled by the rising tendency among customers toward subscriptions for packaged packages that provide pay-TV and OTT media services with ultra-high picture quality.

The market has been broken down into small and medium businesses, small and home offices, and large enterprises based on the organization's size. Due to the growing need for reliable, fast Internet connectivity for efficient workflow, the large enterprise category is anticipated to hold a larger market share throughout the projection period. Due to its extensive coverage and ability to keep users connected without signal loss, fixed-satellite service is used by numerous governments, military organizations, and other big businesses.

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. Hence, the aerospace and defence segment will likely lead in revenue contribution to the market throughout the projection period. Due to its excellent ability to manage crucial voice communications and offer information about unit deployments and movements using intelligence acquired from space-based sensors, VSATs have been widely deployed by defence forces worldwide.

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.

Recent Developments

• 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, pursue 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.