In its 10th year, NSR’s landmark Land Mobile via Satellite (LMvS10) report finds a significant revenue migration underway from narrowband to broadband applications. Though currently dominated by narrowband services, connected vehicles and High Throughput Satellite (HTS) Comms on the Pause (COTP) services are positioned as the fastest growing satellite land mobile sector markets through the decade.
In the short-term, COTP growth takes the lead through Aid, NGO, disaster relief and energy market developments. In the longer-term, demand accelerates for connected vehicles - including cars, RVs, trucks, trains, buses and first responders.
With cumulative revenues reaching $1.2 Billion and a 43.9% CAGR over the decade, connected vehicles are the strongest net growth opportunity with trucking the highest revenue driver. Services remain mostly an aftermarket solution, increasing installation costs, especially if diagnostics and telematics are requirements to be bundled in along with broadband connectivity.
In contrast, average Mobile Satellite Services (MSS) narrowband revenues grow at 1.6%, despite continuing and strong sales by some sub-segments. Churn on MSS narrowband remains much higher than what is expected for connected vehicles and COTP devices.
“Traditional handhelds are now past their revenue peak despite continuing to bring in solid revenues, shifting interest to the connected vehicle opportunity as the one to watch,” notes NSR report author Alan Crisp. “However, capturing the connected vehicle market won’t be easy; this will be a high risk, high reward play compared to other opportunities.”
Crisp concludes, “Overall, having first mover advantage in the broadband space will bring outsized benefits to those that succeed – now is the time to invest in R&D and solutions, to be ready for upcoming growth acceleration.”