Euroconsult published its annual reportProspects for maritime satellite communications”, which shows that despite the prolonged COVID-19 pandemic and its associated impacts, 2021 was still a positive year for the global maritime SATCOM market.
However, according to the report, some segments have weathered pandemic shocks better than others. The merchant sector, which represents the largest connectivity market with more than 240,000 terminals at the end of last year, has helped to keep maritime VSAT service revenues afloat, generating almost half of the 655 million dollars earned last year.
Still under pressure from long restrictions on international travel, ferries and pleasure craft have yet to reach their pre-COVID potential. Nevertheless, large cruise ships, and more than 60% of passenger cruises, managed to resume service last year; a feat that contributed to an increase in the number of active VSATs by 32% to 31,100 terminals compared to 2020. MSS terminals, on the other hand, fell considerably behind with increases of less than 1%.
However, the tide is turning. Demand for new antenna installations remained strong. The same goes for the development of new and upcoming Orbit of non-geostationary satellites (NSO) constellations. Expected to capture half of the leased capacity market by 2031, NGSO is now likely to impact the market in 2022. Expected to be limited to northern latitudes and the fixed/offshore segment after the initial deployment, these constraints are expected to give way to more widespread use as the decade progresses.
Meanwhile, a relatively flat 2020 has given way to increased service provider activity in 2021 as restructuring, as well as mergers and acquisitions have led to a number of consolidations, showing that the business slowly return to normal. Indeed, the past two years have been marked by major corporate events and restructuring actions leading to a significant overhaul of the ecosystem.
Overall, the past year brought positive acclaim to the shipping market after two years of pandemic-induced uncertainty; Data connectivity needs in the maritime market have settled on an accelerating trend driven by greater reliance of end users on data-centric applications, thus opening up new opportunities for the market.
“It’s been a tough few years for the maritime connectivity market, but we’re starting to see an increase in demand for bandwidth, along with an increase in revenue and terminal manufacturing.,” mentioned Vishal Patil, Consultant at Euroconsult and editor of the report. “There is still a long way to go to reach pre-pandemic levels, but with increased competition, the beginnings of new NGO constellations and service providers remaining actively invested in developing value-added services , the global shipping market outlook is positive.”
of Euroconsult”Prospects for maritime satellite communicationscovers five sub-segments of the maritime market and details the forecast to 2031 by region and technology. The report contains updates on the ongoing impacts of COVID-19, as well as a review of NGSO Constellations, Harmonization of Addressable Market Sources, and a review of the MSS Market. This report is available now and can be ordered from the Euroconsult Shop.