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Latin America Earth Observation Data Market to Exceed $350 Million by 2024

Paris, Washington D.C., Montreal, Yokohama- According to Euroconsult’s newly released report,the Latin American Earth observation market is undergoing significant expansion brought about by growing demand for Earth observation data and services, and governments’ growing investment into the application to support this demand and help to develop national Earth observation industries. In this regard, the region is considered one of the most dynamic markets globally.

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Strong Growth Ahead for Latin America Satcom Market

Advancement to continue despite economic headwinds, expansion of fiber networks

Paris, Washington D.C., Montreal, Yokohama, April 29, 2015 – According to Euroconsult’s newly released report, Satellite Communications & Broadcasting in Latin America, total satellite capacity usage increased at an 8% CAGR over 2009-2014, driven by growing requirements for satellite pay-TV (+1,600 channels), VSAT services (+50,000 VSATs), trunking and backhaul. Euroconsult projects total capacity leased to grow at a 10% CAGR over the next decade, translating to a total of over 330 Gbps of traffic flowing over satellite by 2024.

Following strong growth in demand, operators have invested heavily in expansion satellites causing total regular capacity supply in Latin America to double by 2017 (from 2010 levels), while HTS capacity supply will increase eight-fold to over 370 Gbps by 2017.

“As supply additions are projected to outpace growth in demand, the average regular capacity fill rate should decrease from 80% in 2014 to 70% in 2017,” said Nathan de Ruiter, Senior Consultant at Euroconsult and editor of the report. “The trend of falling fill rates is most profound in Ku-band, where utilization levels are dropping from 86% in 2010 to an expected 64% by 2017, causing serious concerns for oversupply.” The risk of a temporary situation of oversupply is anticipated to place strong downward pressure on Ku-band capacity prices in the next three years.

Several fundamentals are supporting a strong increase in the future use of satellite communication services:

  • • The rising number of TV channels distributed over satellite with leading satellite pay-TV operators in the region diversifying into new geographic markets and the emergence of new platforms
  • • Latin America should maintain its leading role in USO programs that include satellite connectivity solutions for rural regions
  • • The availability of HTS capacity and roll-out of cost-effective services should drive consumer broadband in populated countries such as Brazil
  • • The increasing use of high bandwidth applications such as video streaming and cloud services should drive the capacity requirements in energy (oil & gas, mining) and corporate networks segments
  • • Mobile penetration keeps increasing along with the expansion of 3G and potentially 4G/LTE networks, which will create new market opportunities for cellular backhaul over satellite

Although demand is relatively equally distributed across the three sub-regions (Central America, Mexico, Caribbean; Brazil; Rest of South America), the two largest countries, Mexico and Brazil, are projected to represent more than half of total capacity demand by 2024. In the short to medium term, market growth will be hampered by the economic slowdown that should limit the progress of the middle class and may potentially cause instability or delays to government programs and funding. Furthermore, the analog switch-off process will somewhat temper the capacity additions from 2018 until 2022.

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4% Wholesale Service Revenue Growth for MSS Operators in a Challenging Market

Paris, Washington D.C., Montreal, Yokohama- According to Euroconsult’s latest report, the Mobile Satellite Services (MSS) industry faces multiple challenges, including increasingly omnipresent mobile VSAT, troop withdrawals, government budget reductions, and unfavorable economics in the shipping industry. The future of the MSS industry now depends on how fast MSS operators can adapt to this new market environment.

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Sub-Saharan Africa: 11% CAGR for Capacity Leased Through 2024

Paris, Washington D.C., Montreal, Yokohama – According to Euroconsult’s newly released report, overall usage for satellite capacity in Sub-Saharan Africa increased at an 11% CAGR over 2009-2014 despite the spread of terrestrial fiber networks and the decrease of international trunking. Euroconsult further anticipates an 11% CAGR for capacity leased over the next decade, for a total of close to 200 Gbps of traffic flowing over satellite

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510 Smallsat Launches Planned Over Next Five Years

Paris, Washington D.C., Montreal, Yokohama – According to Euroconsult’s newly released research titled a total of 510 small satellites, or smallsats (meaning nanosats, cubesats, microsats and minisats) are to be launched in the next five years, a two-third increase in the average number of smallsats per year versus that of the past decade. This total includes 14 constellations of different sizes and capabilities that represent a total of 140 satellites.

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Euroconsult Opens Office in Japan

Paris, Montreal, Washington D.C., Yokohama – Euroconsult today announced the establishment of an office in Japan, building upon the existing relationship with Shigeki Kuzuoka who has partnered with Euroconsult since 2013. Mr. Kuzuoka will be Head of Euroconsult Japan, based in Yokohama.

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Euroconsult’s Latest Report Targets Satellite Value Chain-2014

Paris, Montreal, Washington D.C. – Euroconsult’s latest report, Satellite Value Chain: The Snapshot, brings together a selection of key trends and indicators on supply and demand from Euroconsult’s 2014 reports complemented by additional dedicated research on the commercial satellite business to give a snapshot of the commercial satellite value chain. Along with the introductory/overview section, the report includes sections on satellite manufacturing & launch services, satellite communications, Earth observation, and satellite navigation.

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Emerging Markets Drive Satellite Pay-TV Growth

Paris, Montreal, Washington D.C. – According to Euroconsult’s newly released report, Satellite Pay-TV: Key Economics & Prospects, the global satellite pay-TV industry has observed strong growth in the past five years despite an increasingly competitive TV landscape where IPTV, DTT and connected entertainment services have rapidly expanded their reach. Subscriptions to satellite pay-TV reached 196 million homes in 2013 and revenues topped $97 billion. While key performance indicators of the sector continued to grow, a slight slowdown was observed, largely attributable to the lack of dynamism in mature markets. Emerging markets now account for 60% of global subscribers, as well as nearly 100% of subscription growth.

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HTS Extends Reach in 2014, On Course for New Horizons

Paris, Montreal, Washington D.C. – According to Euroconsult’s newly released research report, High Throughput Satellites (HTS) continue to proliferate in 2014 in terms of supply additions (+109 Gbps), system investments (nine new orders) and demand take-up (+40 Gbps). This trend should accelerate considering the 100+ projected new HTS system (payload and satellite) launches over the next decade.

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EO Investment and Data/Services Demand Expected to be Driven by Emerging Markets

Paris, Montreal, Washington D.C. – According to Euroconsult’s newly published report, Satellite-Based Earth Observation: Market Prospects to 2023, 353 Earth observation (EO) satellites are expected to be launched over the next decade compared to 162 over 2004-2013. This will result in $36 billion in manufacturing revenues over the period, an 85% increase over the previous decade. Organizations from 41 countries are expected to launch EO satellite capacity by 2023, compared to 33 over the previous decade. Government supply continues to grow strongly as more countries expand their portfolios of EO satellites to meet various policy needs. In addition, newcomers are launching EO satellite capacity to develop a local industrial base, create the building blocks for a space program, obtain greater autonomy in data acquisition, and/or meet local demand for data and services. As a result, investment in EO and meteorology programs reached a high in 2013 at $8.7 billion, a 13% increase over 2012. This represents the 8th year of continued investment growth, with EO remaining a primary concern for government space expenditures.

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