Research And Markets Research And Markets

Maritime Telecom Solutions by Satellite: Global Market Analysis & Forecasts

  • ID: 3675144
  • September 2015
  • Region: Global
  • Euroconsult
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Global Maritime Satellite Communications Market Value to Double Over the Next Decade, with a CAGR of 6% in Terminals and 8% in Revenue over the Period

Maritime Telecom Solutions by Satellite, Global Market Analysis & Forecasts provides an in-depth view of the sector dynamics, analysis and forecasts for the maritime satcom market. Eight comprehensive sections give a detailed analysis of trends and prospects within the major addressable maritime market segments.

Highlights from the report:

The value of the global maritime satellite communications market will double over the next decade, with a CAGR of 6% in terminals and 8% in revenue over the 10-year period. Ever-increasing data communications needs and the massive launch of new generation High Throughput Satellite (HTS) systems are expected to drive both the growth in the market and consolidation in the value chain.

Even though the economic environment is unfavorable due to oversupply in merchant capacity and falling oil prices, the maritime satcom market has maintained its high growth in the last 12 months. Driven by both fast-increasing communications requirements per vessel and aggressive marketing initiatives by service providers, the maritime VSAT market grew by 15% in terminals and 9% in revenues in the last year. The global maritime satcom market reached an unprecedented level of 368,000 terminals, $816 million in revenue at the satellite operator level and close to $1.6 billion in revenue at the service provider level. A total of 7 Gbps of C- and Ku-band capacity was used for maritime VSAT business, compared to less than 2 Gbps in 2010.

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1. Strategic Issues And Forecasts

9% revenue growth for satellite operators in 2014

- MSS stands for 96% terminal counts and 65% in revenue share
- VSAT growing at 23% CAGR in revenue since 2011

High throughput will reshape the maritime communication industry

- Only 3% of regular shipping routes are not yet covered by Ku-band satellites
- Large number of Ku- and Ka-band HTS capacity will come online

Four types of applications to drive satcom usage in the future

About 660,000 satellite communication terminals in service in 2024

- VSAT to account for 63% of the maritime communication market in 2024
- FSS capacity demand will grow to 90 GBPS in 2024

2. Market Dynamics And Value Chain

MSS and VSAT are fighting for market share

- MSS still controls the majority of vessels
- Despite challenges, Inmarsat is still the market leader
- Maritime is the key growth area by FSS operators-

Service providers play a key role in the value chain

A dynamic equipment manufacturing sector

- Intellian and Cobham as established market leaders
- Highly price-sensitive market

Regulation playing an increasingly important role in maritime communications

- Jurisdiction of the states depends on the distance from the shore
- International regulatory authorities in charge of safety at sea
- Increasing traffic in the arctic region will drive satellite usage
- Main regulatory barriers related to former monopoly of Inmarsat
- Regulation acting both as a driver and an inhibitor
- VSAT usage regulated by both ITU and national authorities
- New regulatory applications foster a competitive market environment

3. Merchant Shipping Market

The largest maritime satcom addressable market

- Close to 70,000 merchant vessels in operation
- Trends in merchant shipping: key market segments
- The global merchant fleet is becoming younger
- “Smart” vessels will require more satcom service

Emerging countries dominate the market

- Asia and Europe have the largest merchant fleet
- Filipinos represent 30% of seafarers worldwide

Main shipping lanes located in Northern Atlantic, Pacific, and Indian ocean

- Over 70% traffic is concentrated in the Atlantic, Pacific and Indian Oceans
- Different traffic patterns for different types of vessels

Merchant shipping is the largest maritime satcom market

- VSAT installation growing at 15% CAGR since 2010
- $405 million MSS wholesale revenue in 2014
- Satcom helps to improve ship operation efficiency
- Crew communication pulling the bandwidth demand
- Opportunities ahead for MSS in small and medium vessels

Safety communications stands for large parts of terminal count

- Nearly all merchant ships affected by regulatory requirements

More than 467,000 terminals expected by 2024

- A $1,082 billion market by 2024
- MSS to remain the dominant technology
- VSAT growth rate superior to 16% through 2024

4. Passenger Ships

6,500 passenger ships worldwide Cruise ships and ferries as the main satcom users

- Increasing onboard spending per passenger
- Trend toward more onboard entertainment rather than bigger ships
- A majority of U.S. cruise operators in the market

The Caribbean, the Mediterranean and Europe as top destinations

- North America as the largest market
- Europe accounts for close to one third of the cruise capacity
- Strong potential for the Asian market

Vigorous safety regulations for cruise ships

- Safety conventions regulating the safety of cruise passengers
- Passenger safety impacted by Flags of convenience

Passengers entertainment requiring satcom services

- Web browsing & e-mailing have become standard
- More text messages for onboard telephony
- Trend toward more onboard live TV channels
- Onboard commerce requires credit transactions

Cruise ships satcom consumption keeps increasing

- More and more onboard value-added services
- A highly concentrated service providers market

Market forecasts to 2024 for the passenger ships market

More than 15,000 terminals by 2024

- Broadband and LDR / M2M to drive the MSS market
- VSAT to represent more than 93% of capacity revenues

5. Leisure Vessels

Superyachts: A premium leisure market

- The superyacht fleet continues to grow
- Recovery time for shipyards expected in the coming years

A highly regional leisure market

- European shipyards dominate the market
- Europeans as the most important superyacht owners
- More and more chartered superyachts

Very limited regulations for leisure activities

Extremely demanding customers with high data consumption

- Business-level applications and flexibility required on board superyachts
- A highly seasonal market

More than 43,000 satcom terminals by 2024

- Satcom terminals to grow in the next decade
- MSS terminals to grow to around 30,000 units by 2024
- VSAT terminals are highly competitive

6. Offshore Market

Rigs, supporting vessels and floating production, storage and offloading vessels as key satcom addressable markets

A decreasing operational rig fleet in 2015

- The global rig fleet mainly composed of mobile rigs
- North America as the most important region
- A highly concentrated rig operators market
- Mobile platforms also subject to regulations

Offshore survey and supply vessels as key satcom markets

Production units for long-term operations

- Seven different types of offshore production platforms
- World offshore oil production to grow over the next decade

Satcom at the heart of offshore communications

Steady competition for offshore satcom providers

A highly concentrated service provider market

- Expanding regions of operation
- Satcom’s strong competition from other technologies
- MSS used for multiple purposes
- VSAT completely fits the offshore community’s requirements

Satcom application trends in the offshore market

- Increasing monitoring and real time communications
- Growth of deep-water platforms to drive satcom demand

More than 39,000 satcom terminals in the offshore sector by 2024

- Continuous growth over the next decade
- MSS terminals are expected to reach more than 35,000 units by 2024
- VSAT terminals to pursue a growth rate of 14% through 2024

7. Fishing Market

The fishing industry is characterized by a large number of small fishing vessels

- Most fishing vessels are based in Asia
- The Pacific Ocean remains the major fishing area
- Asia is home to most fishers worldwide

Industrialized vessels are major satcom users

Medium and large vessels as key satcom market

- Limited fishing quotas lead to stringent regulations
- Regulations regarding fishing quotas
- VMS: a national rule
- Regional fleet differences necessitate different regulations

The fishing market remains dominated by MSS solutions

- VMS application using MSS services
- More adapted VSAT solutions to the fishing market

Regulations as a driver for satcom deployment

- Regulations requiring dedicated terminals
- Terminals certification as a major market barrier

Growth to be driven by crew communications and regulations

- More and more data to be regulated
- Operational applications to drive data consumption
- The fishery ecosystem need more VMS-equipped vessels

Forecasts for the fishing market to 2024

- Strong growth in satcom terminals
- MSS to remain dominant in the market in the next decade
- More VSAT installations expected in the future

8. Government Market

Government and military

- Military vessels as the core government market
- A trend toward fewer crew members
- The bulk of the world military fleet is based in Asia
- Budget cuts continues to slow down naval programs
- Global military fleet will slowly continue to expand
- A massive U.S. Coast Guard fleet

Crucial satellite communications for government and military vessels

- Satellite communication has been crucial for naval forces since the 1980s
- Commercial satellite capacity complements proprietary systems
- Government as a niche market for service providers

Major government maritime satcom users

- U.S. Navy
- U.S. Coast Guard
- Rest of the World

Key trends and drivers

- More managed end-to-end service contracts
- The migration from legacy services to higher-frequency bands that allow broadband connectivity
- Proprietary milsatcom and commercial systems to find the right balance
- A potential for hosted payloads
- New applications for specific government requirements
- More tracking and monitoring for better asset management
- Government maritime, a $60 million market for satellite operators by 2024
- A clear trend toward VSAT in upcoming years

Listing of Tables & Graphs

1. Strategic Issues & Forecasts
- The Maritime Satellite Communications Market In 2014
- Number Of Active Maritime Satellite Terminals By Technology (2010-2024)
- Number Of Active Maritime Satellite Terminals By Segment (2010-2024)
- Maritime Satellite Capacity Revenues By Technology (2010-2024)
- Maritime Satellite Capacity Revenues By Segment (2010-2024)
- Number Of Active Maritime VSAT Terminals By Frequency Band (2010-2024)
- Maritime FSS Capacity Revenues For Vsat By Frequency Band (2010-2024)
- Total FSS Capacity Requirements By Frequency Band (2010-2024)
- Maritime FSS Capacity Requirements By Region (2010-2024)
- Number Of Active Maritime MSS Terminals By Application (2010-2024)
- Maritime MSS Wholesale Revenues By Application (2010-2024)

2. Market Dynamics & Value Chain
- Maritime Satcom Industry Value Chain 2015
- MSS Operators Maritime Market Share In Terminals (2014)
- MSS Operators’ Market Share Of $534.7 Million Wholesale Maritime Revenues In 2014
- Growth Of Satellite Capacity Available In Maritime Regions
- Maritime VSAT Service Providers’ Market Share In 2014

3. Merchant Shipping
- Indices For World GDP (2001-2014)
- Evolution Of World Merchant Fleet Between 2008 And 2014 (Over 100 GT)
- World Merchant Fleet Age Groups In Percentage In 2014 (Over 100 GT)
- World Merchant Fleet Age Groups In Number Of Vessels In 2014 (Over 100 GT)
- Merchant Shipping Traffic Worldwide
- World Merchant Shipping Fleet By Ownership (>1,000 Gt Ships)
- World Merchant Vessel Traffic
- Satellite Terminals By Technology - Merchant Shipping (2010-2024)
- Satellite Capacity Revenues By Technology - Merchant Shipping (2010-2024)

4. Passenger Ship
- World Passenger Ships Fleet (Over 100 GT)
- World Active Cruise Fleet (Over 1,000 GT)
- Cruise Ship First Destinations
- Satellite Terminals By Technology - Passenger Ships (2010-2024)
- Satellite Capacity Revenues By Technology - Passenger Ships (2010-2024)

5. Leisure Vessels
- Superyachts Fleet Worldwide
- World Superyachts Fleet By Size
- World Superyachts Fleet By Type
- Leisure Yachts First Destinations
- Leisure Yachts Seasonality
- Satellite Terminals By Technology - Leisure Vessels (2010-2024)
- Satellite Capacity Revenues By Technology - Leisure Vessels (2010-2024)

6. Offshore Market
- World Fleet Of Active Offshore Rigs
- Geographic Distribution Of Active Rigs
- Offshore Oil Production & Forecast
- Active Rig Fleet Distribution Worldwide
- Satellite Terminals By Technology - Offshore (2010-2024)
- Satellite Capacity Revenues By Technology - Offshore (2010-2024)

7. Fishing Market
- Distribution Of Engine-Powered Fishing Vessels (2008-2014)
- Fish Regional Catching Distribution
- World Distribution Of Fishers
- Number Of Industrialized Vessels (Over 100 GT)
- Geographic Distribution Of World’S Industrialized Vessels
- Regional Distribution Of Global Fish Catches
- Industrialized Fishing Vessels Distribution
- Satellite Terminals By Technology - Fishing (2010-2024)
- Satellite Capacity Revenues By Technology - Fishing (2010-2024)

8. Government Market
- World Naval Vessels In Active Service
- Reported Naval Terminals By Frequency Band
- U.S. Navy Satcom Throughput By Category
- Satellite Terminals By Technology - Government (2010-2024)
- Satellite Capacity Revenues By Technology - Government (2010-2024)

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