PRN: New High-Bandwidth and Necessity in Remote Areas Drives Growth in the Global Satellite Transponder Market

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New High-Bandwidth and Necessity in Remote Areas Drives Growth in the Global Satellite Transponder Market


Lengthy contracts and ongoing political tensions worldwide will ensure continued US government and military spend, finds Frost & Sullivan's Digital Transformation team

SANTA CLARA, California, Aug. 1, 2017 /PRNewswire/ -- The global satellite transponder market is experiencing modest but steady growth. An increase in adoption in remote areas, need for back-up and emergency technology, new high bandwidth, and growth areas like in-flight communications, maritime communication, as well as certain military applications are factors propelling growth. To succeed in a mature and competitive ecosystem, players must harness opportunities in high-growth regions and solve complex integration challenges.

Frost & Sullivan recent analysis, Global Satellite Transponder Market, Forecast to 2023, reveals the market is projected to grow at a compound annual growth rate (CAGR) of 2.9 percent from 2016 to 2023. Even with a low growth rate, the market will account for $2.71 billion more in 2023 than in 2016, therefore causing market competition to remain strong.

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"The majority of growth in the satellite transponder market is expected to come from new high-bandwidth, Ka-Band and Ku-Band transponder/bandwidth leasing," says Frost & Sullivan Satellite Communications Industry Analyst Peter Finalle. "Ka-Band satellite technology offers premium performance and a higher quality of service than terrestrial networks. These capabilities are driving deployment and adoption rates in regions with robust landline and cellular networks."

From a regional perspective:

  • China, India, and much of Latin America (LATAM) will continue driving satellite transponder leasing adoption rates due to booming economies and need for additional network connectivity;
  • Africa and most of Asia-Pacific (APAC) do not have robust landline or cellular coverage and would benefit from large-scale satellite adoption for use as cellular backhaul or to connect schools, hospitals, emergency response teams, and local government agencies; and
  • Growth of satellite backhaul remains low in Europe, North America, and the Middle East because of existing network infrastructures in populated locations. North America and Europe, in particular, have substantial cellular coverage, with most countries in these regions reaching a point of presence (POP) coverage of 99 percent.

"The modernization of the US Air Force and Navy will require satellite transponder leasing for a more technologically equipped military," noted Finalle. "Lengthy contracts and ongoing political tensions worldwide will ensure continued spending."

Global Satellite Transponder Market, Forecast to 2023, is a part of Frost & Sullivan's Digital Media Growth Partnership Service program.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion

Global Satellite Transponder Market, Forecast to 2023


Clarissa Castaneda
Corporate Communications â€�“ North America
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