Global Satellite Transponder Market - Segmented by Bandwidth (C-band, KU-band, KA-band), Application (Commercial Communications, Government Communications, Navigation, Remote Sensing, R&D), Service (Leasing, Maintenance, and Support), and Region - Growth, Trends, and Forecast (2018 - 2023)
The satellite transponder market was valued at USD 17.24 billion in 2017, and is expected to reach USD 23.46 billion by 2023 at a CAGR of 5.3% during the forecast period (2018 - 2023). The satellite transponder market has been segmented based on bandwidth (C-band, KU-band, KA-band), by services (leasing, maintenance and support), by application (commercial communication, government communication, navigation, remote sensing, research and development). The regional landscape of the report includes North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
Increase in Demand for New TV Platforms and Technologies
With the recent structural changes in the television industry, the demand for new TV platforms has grown. The rise of significant subscription video on demand over the top (SVOD OTT) players has been phenomenal to observe. On the global stage, Netflix and Amazon Prime Video have expanded from the US to core markets in the developed world, to become global providers. The Netflix coverage has been stable since January 2016. It covers over 190 countries, except few countries like China, Crimea, Syria, and North Korea where access is denied due to US government rules. Amazon Prime Video is also following its global expansion from December 2016. There are also major regional players, such as Hulu to be considered. The substantial increase of the SVOD platforms drives the need for satellite transponders during the forecast period.
Commercial Communications Occupies a Major Market Share amongst the Other Applications Segment
Despite the rise of OTT platforms and constant pressure from other sources, satellites are still being launched and the channels they carry still have subscribers. There is also a need for satellite transponders. According to Dataxis, the global pay TV subscribers grew to 1.05 billion between 2016 and 2017, and the DTH (direct to home) market grew by approximately 7 million subscribers from 238 to 245 million. Cable subscribers fell by roughly the same amount, from 578 to 572 million, while most of the growth of 60 million subscribers came from Linear OTT and IPTV. There is always restructuring of the commercial communications, which leads to demand for transponders and tends to trigger the demand during the forecast period.
North America Occupies the Largest Market Share
North America is expected to occupy the major share of the market due to the dire need for reliable satellite-based communication in video distribution, broadband accesses, and DTH, followed by APAC. However, significant growth will be seen in the MEA and Latin America due to rising demand for direct-to-home (DTH) satellite TV, high definition (HD) to replace standard definition (SD) offerings, need for secure communications for military and defense, and the vibrant broadcast industry in the region.
Key Recent Developments
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