Northern’s Sky Research has released their 2014 Global Satellite Capacity Supply & Demand report, which projects that over 3,000 new transponders and 2+ Tbps of High Throughput Satellite capacity will far outstrip demand growth over the next decade.
Despite the reality of oversupply in a few regions and bands, NSR projects the market will grow by 76%, from about $11.8 Billion currently to $21.1 Billion by 2023.
On the supply side, NSR expects that nearly 3,000 transponders will be added based on satellites entering service between now and 2023. “Nearly every satellite being launched will carry traditional Ku-band, thus adding 1500 transponders of just Ku-band by 2017. This continues until the effect of HTS supply begins to eat into the broader demand, a phenomenon not expected until the end of this decade”, says the report.
Global demand paints a cautiously optimistic picture, with over 1,300 transponders of new demand for traditional C, Ku, and Ka-band capacity arising by 2023, supplemented by nearly 1 Tbps of new GEO-HTS demand. “Looking at global demand, the hype surrounding HTS is indeed justified, with a demand growth rate of over 30% annually, compared to less than 2% for traditional FSS C, Ku, and Widebeam Ka-band capacity,” reports Blaine Curcio, Analyst and report co-author.