Bandwidth needs in remote areas drive growth in global satellite transponder market

Bandwidth needs in remote areas drive growth in global satellite transponder market

Market news |
By Jean-Pierre Joosting

This modest but steady growth is due to an increase in adoption in remote areas, the need for back-up and emergency technology, new high bandwidth, and growth areas like in-flight communications, maritime communication, as well as certain military applications. To succeed in a mature and competitive ecosystem, players must harness opportunities in high-growth regions and solve complex integration challenges.

“The majority of growth in the satellite transponder market is expected to come from new high-bandwidth, Ka-Band and Ku-Band transponder/bandwidth leasing,” says Frost & Sullivan Satellite Communications Industry Analyst Peter Finalle. “Ka-Band satellite technology offers premium performance and a higher quality of service than terrestrial networks. These capabilities are driving deployment and adoption rates in regions with robust landline and cellular networks.”

China, India, and much of Latin America (LATAM) will continue driving satellite transponder leasing adoption rates due to booming economies and need for additional network connectivity;

Africa and most of Asia-Pacific (APAC) do not have robust landline or cellular coverage and would benefit from large-scale satellite adoption for use as cellular backhaul or to connect schools, hospitals, emergency response teams, and local government agencies; and

Growth of satellite backhaul remains low in Europe, North America, and the Middle East because of existing network infrastructures in populated locations. North America and Europe, in particular, have substantial cellular coverage, with most countries in these regions reaching a point of presence (POP) coverage of 99 percent.

“The modernization of the US Air Force and Navy will require satellite transponder leasing for a more technologically equipped military,” noted Finalle. “Lengthy contracts and ongoing political tensions worldwide will ensure continued spending.”

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