Juniper Research, a global technology strategy firm, has conducted a study that has found that the worldwide satellite broadband segment will generate revenues for providers of this service of about $20 billion in 2030. The revenue prediction for 2025 stands at $10 billion, signifying a two-fold growth expectation in the coming half-decade.
The researchers expect this growth in revenue to be fueled by increasing investments in LEO (low-earth orbit) technology. This technology offers providers several advantages, such as cost reductions when launching satellites and improved latency.
The researchers pointed out that their projections focused on the use of satellites to deliver broadband internet by leveraging satellites based at a particular location and accessible through a dish or satellite terminal.
The team says that until recently, the market for fixed satellite broadband has been centered in affluent regions of the world, such as North America, as a result of the high costs associated with these services.
However, Juniper Research says their findings point to a shift towards emerging markets like Indonesia and India as the main drivers of the expected growth in the market for these services. The improvements in technology will translate into lower costs associated with satellite launches, and those cost reductions will in turn translate into cost reductions for end-consumers.
Those emerging markets are also demanding reliable top-notch broadband access, and supply tends to gravitate towards the markets where demand exists.
To tap these new markets, Juniper Research indicates that service providers will need to create and nurture partnerships with operators of mobile networks, providers of internet services and other related service providers so that those local entities can resell the broadband services to their existing client base.
Alex Webb, the research firm’s senior analyst, states that as satellite providers strengthen their partnerships with providers of communication services, they will speed up their expansion into the new markets by expanding the channels through which their solutions are distributed. This rapid expansion will be possible since the satellite providers will ride on the relationships of trust that local providers of communication services have built with the customers that they serve.
Additionally, those partnerships will also make use of the existing billing structures and systems, thereby removing the need to introduce new systems in the markets being targeted.
This rapid growth in the revenues generated through satellite broadband connectivity is likely to increase the market opportunities of companies like Broadcom Inc. (NASDAQ: AVGO) that specialize in providing infrastructure software and semiconductor solutions to the broadband market around the world.
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