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Technavio Anticipates High Demand for FSS Transponders with HDTV and UltraHDTV Users Likely to Increase to 1 Billion by 2020
[October 17, 2016]

Technavio Anticipates High Demand for FSS Transponders with HDTV and UltraHDTV Users Likely to Increase to 1 Billion by 2020


Technavio analysts forecast the global FSS market to grow at a CAGR of close to 6% during the forecast period, according to their latest report.

The research study covers the present scenario and growth prospects of the global FSS market for 2016-2020. Based on service category, the market is segmented into wholesale services and managed services, with the former dominating the market.

The number of households having high-definition television (HDTV) and UltraHDTV is expected to increase rapidly and reach around 1 billion during the forecast period. Due to this increased adoption of HDTV and UltraHDTV, the requirement for transponders will increase, which will create scope for market growth.

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Technavio analysts highlight the following three factors that are contributing to the growth of the global FSS market:

  • Increasing demand for satellite TV and video transponders
  • Increasing broadband and DTH subscriptions
  • Rise in demand for telecom/mobile backhaul

Increasing demand for satellite TV and video transponders

The usage of transponders in the television industry is increasing rapidly. Content providers and broadcasters have employed over 60% of the fixed satellite transponders. However, the demand for FSS transponders has been increasing due to the adoption of HDTV in developed as well as developing countries. The increasing demand for satellite transponders is primarily boosted by the growing demand for HTS that uses many small spot beams distributed across a particular service area to connect the satellite with small aperture earth stations at high data rates.

In addition, the popularity of satellite TV, mostly in developing countries, is increasig the demand for high bandwidth-consuming 3D channels; satellite TV requires 40%-50% higher capacity compared with HDTV channel. The number of HDTV channels is increasing rapidly.



Increasing broadband and DTH subscriptions

"The increase in the number of broadband subscribers in MEA and APAC provide growth opportunities for the FSS Market. This has resulted in intense competition with new satellite launches by existing FSS operators, while many new satellite operators are expecting their first satellite to be launched in the next few years. The large subscriber base in countries such as China and India and the ever changing regulatory and competitive landscape of the market has increased the demand for FSS solutions in APAC," says Abhishek Sharma, a lead analyst at Technavio for research on M2M and connected devices.


In the global consumer sector, the satellite market generated a revenue more than USD 100 billion; the global satellite broadband was valued at around USD 2 billion in 2014. Of about 2.5 million global subscribers, 65% of satellite broadband subscribers were from the US. As the subscribers are gaining confidence on the quality of service of satellite broadband despite the high data rates, operators, service providers, and space agencies like Eutelsat Tooway, HughesNet, Inmarsat Global Xpress, O3B, and ViaSat (News - Alert) Exede are entering the satellite broadband market due to its huge growth opportunities.

Rise in demand for telecom/mobile backhaul

The FSS market is experiencing a significant growth from telecom and mobile backhaul. Mobile backhaul ensures the transportation of data and voice distributed network sites to the network core. Earlier, mobile operators did not entirely embrace satellite technology for backhaul, but with advances in satellite technology, they are now more flexible in its use.

"The need for telecom backhaul has increased with the introduction of 3G and 4G networks, which is expected to support more data traffic by 2020. The high capacity 3G and 4G networks need more backhaul capacity," says Abhishek.

In recent years, there has been a strong demand for telecom/mobile backhauling through satellite across southeast Asia. The anticipated growth will be boosted by HTS. With the increased presence of HTS, the demand for satellite backhaul will rise during the forecast period.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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