Revenue takes off: Greater demand for inflight internet access supports industry growth

Despite sporadic satellite development investment trends, the Satellite Telecommunications Activities industry has grown. Satcom companies operate satellite infrastructure and associated networks, providing system access to downstream telecommunications firms, commercial businesses and the government. While the bulk of revenue is derived from broadcasting activities, the balance is generated from communications (e.g. data and telephone services) and earth observation. Over the five years through 2018-19, revenue is forecast to grow at a compound annual rate of 11%. Despite limited post-financial crisis public-sector and private equity support, causing volatility in the UK space sector, satcom companies have continued to diversify their service spectrum to drive more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Companies have diversified their service spectrum, which has supported revenue growth
  • Demand for mobile satellite services has grown, which has helped support an increase in revenue
  • Industry operators are expected to focus their efforts on developing nanosatellite technology
  • Industry Report - Industry Products Chapter

    Satellites are classified depending on the altitude at which they orbit the Earth. The majority of satellites are placed in low Earth orbits (LEOs), moving between 200 and 1,200 kilometres above the Earth. On average, they make one revolution of Earth every 90 minutes. Medium Earth orbit satellites travel at an altitude between 1,200 and 35,790 kilometres. Geostationary Earth orbit (GEO) satellites perform a circular orbit of the Earth at an altitude of 35,790 kilometres while remaining above a single point on the Earth's surface. Satellite services can also be classified as either fixed satellite services (FSS) or mobile satellite services (MSS), depending on the type of Earth station used to receive the signal. Ope...purchase to read more.

    Additional Insights for the Satellite Telecommunications Activities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Satellite Telecommunications Activities Industry are

  • Access to highly skilled workforce
  • Economies of scale
  • Optimum capacity utilisation
  • IBISWorld analysts also discuss how external factors such as IT and telecommunications adoption and Business confidence index in the Satellite Telecommunications Activities industry impact industry performance..

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    What's in this report

    What is the Satellite Telecommunications Activities Industry?

    Industry participants operate, maintain and provide access to satellite infrastructure to transmit voice, data, text, sound and video. Industry operators may also transmit visual, aural or textual programming to consumers via direct-to-home satellite systems. The industry excludes telecommunications resellers (see IBISWorld report J61.900).

    Industry Products
  • Broadcasting
  • Communications
  • Earth observation and other services
  • Industry Activities
  • Providing fixed satellite services
  • Providing mobile satellite services
  • Providing internet access using satellite infrastructure
  • Providing satellite support services, including tracking and telemetry
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • IT and telecommunications adoption
  • Business confidence index
  • Government spending on defence
  • Demand from television programming and broadcasting
  • Demand from scheduled passenger air transport
  • Demand from sea and coastal freight water transport

  • Current Performance
  • Global connectivity
  • Commercial connectivity
  • Agency support
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream connectivity
  • Technological innovation
  • Beyond Galileo
  • Table: Satellite Telecommunications Activities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Satellite Telecommunications Activities Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Radio Broadcasting
  • Television Programming & Broadcasting
  • Internet Service Providers

  • Key Selling Industries
  • Aircraft, Engine & Parts Manufacturing
  • Space Transport

  • Products & Services
  • Broadcasting
  • Communications
  • Earth observation and other services
  • Chart: Satellite Telecommunications Activities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial
  • Government
  • Consumers
  • Chart: Major Market Segmentation for the Satellite Telecommunications Activities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesDepreciationPurchasesAncillary servicesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Satellite Telecommunications Activities

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Satellite Telecommunications Activities Industry

  • Industry Globalization
    Airbus Defence and Space Ltd, SES SA, Arqiva Ltd,
  • Table: Airbus Defence and Space Ltd - financial performance
  • Table: SES SA - financial performance
  • Table: Arqiva Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Satellite Telecommunications Activities Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Satellite Telecommunications Activities Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fixed Satellite Services (Fss)
  • Satellite transmission that uses a fixed terrestrial antenna.
  • Geostationary Satellite
  • A satellite, placed 35,790 kilometres above the equator, which stays above a fixed point on Earth by orbiting at the planet's rotational velocity.
  • M2m
  • Machine-to-machine is a broad label used to describe any technology that enables networked devices to exchange information and perform actions without manual assistance of humans.
  • Mobile Satellite Services (Mss)
  • Satellite transmission that uses a mobile terrestrial antenna.
  • Nanosatellite
  • A small satellite weighing between one and 10 kilograms.
  • Satcom Companies
  • Companies that are involved in designing, constructing, and operating satellites or engaged in other satellite-related activities.
  • Teleport
  • A ground-based hub that connects satellites to terrestrial information networks.
  • Wireless Backhaul
  • Act of transferring data from an end user to a mobile network.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Satellite Telecommunications Activities market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Satellite Telecommunications Activities:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Satellite Telecommunications Activities market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Satellite Telecommunications Activities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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