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Aeronautical Telecom Solutions by Satellite, Global Market Analysis & Forecasts (2011 Edition)

  • ID: 2372815
  • Report
  • March 2011
  • Region: Global
  • 147 Pages
  • Euroconsult
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This in-depth view of the sector dynamics, analysis and forecasts for the aeronautical satcom market includes four comprehensive sections that provide a detailed analysis of trends and prospects in the major addressable aeronautical market segments (Business Aviation, Commercial Airlines, Government, Helicopter & General Aviation).

- Complete overview of the aero 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 specifics on the aeronautical market
- Ku-band satellite capacity demand per region

Includes current data & forecasts to 2020 for:

- MSS terminals by application
- VSAT terminals by frequency band
- Capacity revenues
- Equipment sales
- Total revenues for tier-one service providers
A must read for:

- MSS & FSS Operators
- Specialised Services Providers
- Satellite Equipment Manufacturers
- Satellite Manufacturers
- Investors & Financial Institutions
- Government Agencies
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Part 1: Strategic Issues and Forecasts
A $1.3 billion market in 2010

- A nascent market recording 25% growth in 2010
- MSS still dominating the aero satcom market
- Increasing interest for FSs satellite operators

Key trends in the value chain
Key aero applications driving satcom demand

- Cockpit communication and IFE to drive the satcom usage
- Satellite gaining acceptance as reliable and proven technology
Increasing competition between MSS and VSAT

- Different use and positioning of the two technologies
- …But increasing convergence and overlap in the market
Key drivers and inhibitors for future development
- Both supply and demand side to push the market forward
- …Still some market barriers inhibiting satcom growth in aero markets
Trends to higher bandwidth with changing usage pattern
- Increase in service offerings with growing broadband demand
- Trends toward higher frequency bands offering higher data rates
- Future aero regulation driving drastically satcom usage
- Satcom solution to leverage the black box capacity
- Cost as a key element in competition
Aeronautical satcom market forecast to 2020
- 94,000 terminals anticipated in 2020

Part 2: Market Dynamics & Value Chain
Satellite Operators
Satellite operators experiencing takeoff growth Inmarsat has been offering aero solutions since the 1990s
- Climbing Inmarsat aero revenues
- Inmarsat Classic service highly used for air safety
- Launch of SwiftBroadband boosting market offer
- Ka-band services to expand MSS operator’s portfolio

Iridium to expand footprint with aero OpenPort
- The takeoff of Iridium aeronautical terminals

New entrants expected in the near future

Aeronautical market remains a fraction of FSS operators’ business
- Aeronautical VSAT still at early stage
- Fast growth in the VSAT market to attract more FSS assets

Service provision market landscape
- Lessons learned from the failure of Boeing
- Service provider developing end-to-end solutions
- Service providers expanding service footprint by reseller network
- Service providers eyeing Ka-band offering

Increasing number of market consolidations and partnerships

Service Providers

Equipment manufacturers as an essential part of the value chain
- North American equipment manufacturers dominating the market

MSS Aero satcom solution expanding with increasing market offers
- EMS as the established market leader for MSS equipment
- Low-end MSS products as a growth engine
- Integrated solutions taking part of the market

Challenges ahead for VSAT equipment manufacturers
- Stable, smaller, and lighter systems becoming a factory option
- Multi-channel antennas
- Trends to Ka-band VSAT solution

Equipment Manufacturers
- States hold sovereignty in the airspace over their territories
- Division between safety communications and non-safety communications
- Restrictions on voice communication on board in the US

International regulations focusing on safety communications applications
- The number of satellite ACARS users is growing
- Future regulatory projects should drastically increase satellite usage by 2020
- …However, regulation can also slow down the market dynamic

International Organizations Developing Applicable Regulatory Standard

Annex I: Satellite operator profile – Iridium Communications
Annex II: Equipment manufacturer profile – EMS Satcom
Annex III: Service provider profile – AirCell
Annex IV: End-user profile – Emirates Airline, successful aero satcom adoption

Part 3: Business Aviation Market
Business Aviation

World business aviation fleet growing since 2004

- Value chain for the business aviation industry
- Market under a short term downturn until 2010
- Close to 17,000 operations business jets addressable for satcom in 2010
- Market driven by aircraft replacements and fractional ownership
- Replacement as key market driver
- Fractional ownership pulling the demand
- Increasing recognition attracting larger user group

Mature satcom market with variety of applications

- Established addressable market for service providers
- Multiple satcom usage driving bandwidth demands
- Data rate and bandwidth varying with applications
- Satcom connection to respect regulatory standards
- MSS solution used for both basic safety communication & IFE
- VSAT services to offer high bandwidth capacity for heavy users
- Ka-band connectivity as a future trend

North America is the largest market but emerging markets chasing behind Over 20,000 satellite communication terminals in service by 2020

Part 4: Commercial Airlines Market
Commercial Airlines
Close to 28,600 commercial aircrafts in operation as 2010 ends

- Commercial passenger airlines segmentation
- Value chain for the commercial airline industry
Air traffic liberalization stimulating commercial airlines market

- Air traffic rebound in long term
- Air traffic liberalization and European Open Sky

Both traditional and low-cost carriers pursuing satcom for IFE

- Satcom connection as revenue source for emerging low-cost carriers

Air traffic growth and larger aircrafts expanding satcom market

- Sustainable traffic growth for long-haul routes
- Bigger aircraft needed for intercontinental routes
- Aircraft replacements creating opportunity for satcom industry

Satcom application driven by both safety and in-flight communication

- Drivers and inhibitors for satcom commercial airlines market
- Satcom as an essential tool for cabin and safety communication
- Satcom usage to leverage aircraft’s black box technology
- Significant growth through the desire for IFE
- Data rate and bandwidth requirement vary with applications
- Aircraft manufacturers playing significant role in satcom market
- Passenger satcom service model
- Commercial airlines to attract service providers to enter the market
- Basic satcom application required on cargo planes
- Challenges facing aero satcom suppliers and service providers
- Partnerships as a key strategy to meet the market demand
- Future Ka-band to meet growing bandwidth demand

Nearly 17,000 terminals expected in 2020

- Close to 7,000 operating MSS terminals in 2010
- VSAT terminals growing with emerging IFE of commercial airlines
- Capacity revenues growing strongly with a CAGR of 23.6%

Commercial airlines driven by Asia Pacific and Latin America Over 18,000 satellite communication terminals in service by 2020

Part 5: Government Market
Government Market

Government market composed of military aircraft and UAVs

Around 23,000 satcom-addressable military aircraft in 2010

- The military transport segment as the largest market
- 900 new satcom addressable aircraft in service in the next decade
- Approximately 74,500 operating military aircraft by 2020

Satcom application as secure communication link

- Reliable access for military aircraft operations
- Military bandwidth demand growing with market availability
- Increasing bandwidth offerings with trends to Ka-band in 2014

Military programs boosting aero satcom applications

- US military programs pulling MSS usage
- European government aero satcom programs
- Asia Pacific region standing for largest satcom market

More than 48,000 terminals for government aircraft by 2020

- Capacity revenue to reach $250 million in 2020
- Satcom Addressable Aircraft of US Air Force in 2010
UAV market is boosted by an increasing US defense budget

- Around 320 satcom addressable UAVs operating in 2010
UAV usage driven principally by military demand

- Increasing HALE & MALE UAVs worldwide

US as the biggest UAV operator with increasing interest of Israel and Europe

The UAV as a heavy consumer of satellite capacity

- Satellites supporting Beyond Line Of Sight (BLOS) communication
- Commercial Ku-band capacity as the backbone of UAV datalinks
- High bandwidth demand from HALE & MALE UAVs

New generation sensors to stimulate bandwidth demand

- New UAVs with more powerful sensors boosting bandwidth demand
- US leading the trend in terms of using commercial Ka-band

Value chain of the military satcom market

- Vertical and horizontal partnerships to target the market
- Fragmented equipment manufacturing market

Part 6: Helicopter & General Aviation Market

Close to 35,000 helicopters in operation at year-end 2010 Military and civilian demands pushing the innovation

- Civilian market with increasing international demand
- North America as the largest regional market

World general aviation market consisting of 165,600 aircraft

Rescue and surveillance as main satcom application for helicopters

- Search and rescue, medical transport requiring accurate real-time satcom
- Crews’ lives depending on safety applications
- Video applications requiring high data rates
- Flight automation to increase satcom bandwidth demand

General aviation requiring limited satcom services

- Basic applications focusing on safety
- Additional applications for general aviation

Helicopter and General Aviation 19% CAGR for both helicopter and general aviation markets through 2020

- More than 1,300 active terminals for UAVs by 2020
- Capacity revenue in the UAV segment reaching nearly $200 million in 2020
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The market value of the global aeronautical satellite communications market reached roughly $1.3 billion in total revenues (including MSS & VSAT) at year-end 2010. Driven by the strong increases in communications needs from cockpit and cabin applications, the market grew 12% in number of operating terminals and nearly 25% in total revenues. Going forward, total revenue for the global aero satcom market is expected to reach $2.3 billion in 2020 including revenues generated from airtime, value-added services, equipment sales, and aircraft retrofits/installations.L-band based MSS services currently dominate the aero satcom market and are expected to account for the majority of terminal deployments in the next 10 years. However, with significant technical improvements from FSS operators, high throughput Ku-and Ka-band VSAT services are expected to grow at a double-digit rate in both terminals and revenues over the next decade.
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Note: Product cover images may vary from those shown