Maritime Telecom Solutions by Satellite, Global Market Analysis & Forecasts (2012 Edition)

  • ID: 2372800
  • March 2012
  • Region: Global
  • 160 Pages
  • Euroconsult
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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 (Merchant Shipping, Fishing, Passenger Ships, Leisure Vessels, Offshore, Government).

- Complete overview of the maritime market dynamics & outlook

- Comprehensive review of entire value chain describing the actors & value created at each level

- Refined market research on related MSS issues with detailed maritime specifics

- Forecasts on mobile VSAT including terminals by frequency band & segment

- Addressable maritime markets analysis includes MSS terminals by application, VSAT terminals by frequency band, capacity revenues, equipment sales, and total revenues for tier-one service providers.

A must read for:

- MSS & FSS Operators
- MSS & VSAT Maritime Services Providers
- Satellite Equipment Manufacturers
- Satellite Manufacturers & Launchers
- Investors & Financial Institutions
- Government Agencies

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Part 1: Strategic Issues & Forecasts

A $1.4 billion maritime satellite communications market in 2011

- MSS holding 97% terminal count while just 60% in revenue share
- VSAT growing at 15% CAGR in terminals since 2008
- A pie shaped by operators, service providers and equipment manufacturers Changes in usage patterns driving the growth

Data standing for the future of maritime communications

- Ku-band VSAT and MSS broadband witnessing fast growth Ka-band to reshape the maritime communications industry
- Inmarsat’s Global Xpress to be the only global Ka-band system
More Ka-band systems expected in the future Almost 622,000 satellite communications terminals in service in 2021

- VSAT to account for 55% of the maritime communications market in 2021
- 43% CAGR in Ka-band deployment between 2016 and 2021
- Close to $1.7 billion in satellite service provider revenues in 2021
Part 2: Market Dynamics & Value Chain

MSS defends the ground from the VSAT attack

- MSS dominating the maritime market
- Inmarsat as the MSS market leader
- VSAT remaining as a fraction of FSS operators’ business
- FSS operators are investing in the maritime market

Service providers playing a key role in the value chain

- Concentrated MSS service provision market
- MSS resale margin is decreasing
- Fragmented VSAT service provision market
- More transactions and consolidations ahead in the VSAT market
A dynamic equipment manufacturing sector

- Thrane & Thrane as the established market leader for MSS equipment
- Emerging manufacturers starting with low end MSS products
- A fast growing VSAT equipment market
- iDirect as the leading network provider
- Highly price-sensitive market
- Moving to Ka-band era
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
- 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

Part 3: Merchant Shipping

5% growth for world merchant shipping fleet in 2011

- Close to 70,000 merchant vessels in operation in early 2012
- The Filipinos representing 30% of the 1.4 million seafarers worldwide

50,000 vessels as the backbone of the shipping industry
New ship deliveries still to grow for the coming years

- Global merchant fleet is becoming younger
- “Smart” vessels with less crew onboard
Seaborne trade being increasingly dominated by emerging countries

- Main shipping lanes located in Northern Atlantic and Pacific
- Asia and Europe own the largest merchant fleet
Piracy threatening the merchant shipping industry Merchant shipping as the largest maritime satcom market

- Almost 220,000 MSS terminals in operation at year end 2011
- VSAT installation growing at 17% CAGR since 2008
Room remains for future growth

- Communication as a fraction of operating cost
- Opportunities ahead for MSS in small and medium vessels

Broadband as the key growth driver

- Crew communication pulling the bandwidth demand
- Operational communication needs as the decision making factor
- Tankers requiring the highest bandwidth
- Broadband systems enabling new applications

Safety communications stands for large part of terminal count

- Almost all merchant ships affected by regulatory requirements
- AIS as an emergency application
- ECDIS to drive satcom usage

Over 441,000 terminals expected by 2021

- A $973 million market by 2021
- MSS to remain the dominant technology
- VSAT growth rate superior to 10% through 2021

Part 4: Fishing

Small vessels dominating the fishing industry

- Asia has the largest fishing fleet
- Pacific Ocean as the main fishing area
- 35 million fishermen worldwide, mainly in Asia
Industrialized vessels stand for the core satellite market

Medium and large vessels as key satcom market Regulation focusing on fishing quotas

- Regulatory rules implemented at a national level
- Regional regulatory environments are different

MSS as predominant solution

- A variety of MSS services - VSAT solutions in growth
Regulations play a key role in satcom deployment

- Dedicated terminals for regulatory usage
- Certification of the terminals still a major hurdle
Regulation and crew communications to drive the growth

- Large VMS demand to control illegal fishing
- Increase in the information to be reported provides for growth in the total volume of data
- Welfare communication and productivity improvement to drive data consumption
Forecasts for the fishing market to 2021

- Strong growth in satcom terminals
- MSS to have better penetration in the next decade
- More VSAT installations expected in the future

Part 5: Passenger Ships

About 6,500 passenger ships worldwide

Cruise ships stand for half of the world passenger ship capacity

- 100% utilization rate with high revenue per passenger
- A growing cruise ship fleet
- U.S. cruise operators dominate in the market

The Caribbean, Alaska, and Europe as top destinations

- North America as the largest market
- Europe with 30% cruise capacity
- Emerging market in Asia

Cruise ships historically being the main target of safety-related conventions

- Strong regulatory requirements for the safety of passengers
- Flags of convenience, a real issue for passenger safety

A variety of applications requiring satcom services

- Web browsing & emailing are most used applications
- Onboard telephony via satellite
- Satellite TV becoming popular
- Credit transactions a must-have for onboard commerce

Cruise ships as heavy satcom users

- Up to 25 Mbps required to guarantee a comfortable voyage
- A full range of telecommunications services onboard

VSAT as the communications backbone

Growth in addressable markets to foster satellite capacity demand 14,500 terminals by 2021

- Broadband and LDR to drive the MSS market
- VSAT to boost satcom market

Part 6: Leisure Vessels
Superyachts as the premium leisure market

- 7% CAGR for superyacht fleet
- 320 superyachts built per year

Europe as the first destination for leisure vessels

- Italy remains the first manufacturer
- The Americans as the most important superyacht owners
- 1,000 superyachts chartered in 2011

Leisure activities generally not regulated by international conventions

- Non-commercial activities are not the primary target of regulations
- Safety equipment installed on a voluntary basis

Small vessels with large bandwidth demand

- Always-on communications as a common practice
- Applications ranging from emailing to telemedicine
- Strong regional focus and strong seasonality

Almost 29,000 terminals by 2021

- Satcom terminals to grow in the next decade
- MSS terminals to grow to 27,000 units by 2021
- VSAT terminals are highly competitive

Part 7: Offshore

Rigs, supporting vessels and FPSOs as key satcom addressable market

More than 750 operational rigs in the world

- Mobile rigs represent more than 75% of the global fleet
- North Sea as the most important region
- Transocean as the leading drilling contractor
- Mobile platforms apply the same regulations as ships

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 for the next decade

Satellite communications as the backbone connection

A highly competitive market for satcom providers

- Consolidations led to a concentrated market
- The market is expanding into emerging regions
- Different telecommunications technologies competing with satcom
- MSS widely used offshore for broadband connectivity and asset tracking
- VSAT satcom widely accepted by the offshore community

Trends of satcom application in the offshore market

- More bandwidth for more communication in real time
- The growth of deepwater platforms to drive satcom demand

Offshore rigs and vessels accounting for around 37,000 terminals in 2021

- Continuous growth in the next decade
- MSS terminals expected to reach 35,000 units by 2021
- VSAT terminals to pursue a growth of 6% through 2021

Part 8: Government

More than 9,000 government vessels in operation in 2011

- Military vessels as the core government market
- Fewer crew members onboard FLVs in the future
- The U.S. Navy stands for 30% of the world military fleet
- Budget cuts may hurt naval programs
- Global military fleet still to expand
- The U.S. has the largest Coast Guard fleet

Major government maritime satcom users

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

Key trends and drivers

- Managed end-to-end service contracts instead of pure capacity leases
- Inmarsat is losing ground in maritime government markets
- A move to higher bands to allow broadband connectivity
- Trends toward increasing use of proprietary milsatcom systems
- Hosted payloads to enhance and complement government systems
- Interoperability of systems
- New applications
- Tracking and monitoring

More than 11,000 satcom terminals expected aboard government vessels by 2021

- Government maritime a $143 million market for commercial satcom by 2021
- A clear trend toward VSAT over the next years
- VSAT growth rate superior to 10% through 2021

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Sector dynamics, analysis and forecasts for the maritime satcom market The global maritime satellite communications market achieved about 317,000 active terminals and more that $1.4 billion at the service provider level in 2011. Established MSS services and especially the emerging VSAT business contributed to the overall growth of the maritime satellite communications market. Since 2008, the global market has been growing at 7% compound annual growth rate (CAGR) in terminals, 9% CAGR in satellite capacity revenues, and more than 10% CAGR in equipment business. Despite the fact that legacy MSS services are being phased out, MSS broadband and Ku-band VSAT services are maintaining strong growth momentum. In addition, a large part of the maritime community is not yet well addressed by the satellite communications industry, and opportunities are still ahead in underdeveloped vertical segments and emerging geographic markets. The upcoming Ka-band services are also expected to contribute to market growth in the next decade.

Note: Product cover images may vary from those shown
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