Downstream digital transformation, increased use of the Internet of Things, remote location connectivity and system upgrades, are all driving factors behind the satellite-based connectivity service evolution, a recent Frost & Sullivan analysis has revealed.
The report also found that demand has propelled the formation of new alliances between existing and new entrants to the market who are aspiring to create low-cost, integrated and seamless global aviation connectivity services.
"Value chain dynamics are changing with new investment from private firms and financial institutions empowering entrants with innovative business models to offer low-latency, affordable and global connectivity solutions," said space industry principal at Aerospace & Defense, Vivek Suresh Prasad. "To compete, incumbent participants are expanding their portfolios, increasing investments and partnerships in downstream infrastructure, and developing high-throughput small-satellite services."
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The survey also looked at the ways a number of companies have been investing in satellite connectivity services. Geostationary satellite operators, such as Eutelsat, are currently building narrow and broadband services that utilize LEO small-satellite constellations. Intelsat is integrating its geo, HTS and terrestrial capacities to provide high-speed broadband access services across the globe. Additionally, launch service providers have been entering the market; Frost & Sullivan referenced SpaceX’s plans to invest in 12,000 small satellites operating in Ku, Ka and V bands that will provide affordable, global connectivity, low-latency and unified solutions.
"The key to success will be aggressive investment and development of non-existent downstream infrastructure such as multi-beam ground station terminals for seamless connectivity," Vivek additionally noted. "Manufacturers will need to optimize low-rate serial production lines to boost small-satellite output."