According to a recent Frost & Sullivan report, the global satellite transponder market is experiencing modest but steady growth. This growth is a result of an increase in adoption of communication in remote areas, need for back-up and emergency technology, new high bandwidth requirements, and growth areas like in-flight communications, maritime communication, as well as certain military applications are factors propelling growth.
The report, Global Satellite Transponder Market, Forecast to 2023, reveals the market is projected to grow at a compound annual growth rate (CAGR) of 2.9% from 2016 to 2023. Even with a low growth rate, the market will account for $2.71 billion more in 2023 than in 2016, therefore causing market competition to remain strong.
According to the report, 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. 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.
From a regional perspective, the report states:
- 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 too will require satellite transponder leasing for a more technologically equipped military. Lengthy contracts and ongoing political tensions worldwide will ensure this continued spending.
Global Satellite Transponder Market, Forecast to 2023, is a part of Frost & Sullivan's Digital Media Growth Partnership Service program. Click here for more information on this report.
