Euroconsult, a leading market intelligence firm, predicts that the maritime connectivity sector has mostly recovered from the COVID-19 pandemic’s impact on supply chains and vessel activity by the end of 2022. Maritime satellite communication operators are expected to generate over $1.1 billion in revenue by 2032, growing at a CAGR of 7% over the decade. While some service providers may experience a decrease in their average revenue per unit, the total service revenues are expected to grow at a similar CAGR, reaching nearly $3 billion by 2032.
Maritime NGSO services
Euroconsult’s “Prospects for Maritime Satellite Communications” report cautions that low-bandwidth services for small merchant and fishing vessels have been affected by inflation, resulting in an increase in data plan pricing. The report also notes the impact of the war in Ukraine on the offshore oil and gas sector, leading to an increase in support vessel deployment. High-bandwidth prices have adhered to expected downward trends, with the entrance of NGSO constellation services, such as Starlink and SES’s O3b mPOWER. The report suggests that smaller vessels are cautious about adopting these services, opting to try multiple options before choosing the most suitable. Euroconsult estimates that the launch of maritime NGSO services is driving the adoption of VSATs, with 37,000 VSAT-equipped vessels at the end of 2022, led by 23,000 crafts in the merchant shipping segment.
New communication technologies
Euroconsult forecasts that the passenger segment will follow the offshore and leisure verticals in adopting new communication technologies, with Starlink receiving a positive response in other segments as well. The firm expects a total of 90,000 VSAT-equipped vessels by 2032, with the associated bandwidth usage growing twentyfold from 65 Gbps in 2022 to 1.3 Tbps in 10 years, driven by the adoption of VSATs and the availability of NGSO services. The report predicts that the cost of capacity will continue to fall due to increased supply, pressurizing existing capacity providers to lower prices. Euroconsult’s report provides a review of key metrics in the Maritime Connectivity market, with a focus on satellite technologies, NGSO constellations, smart ships, and autonomous vessel concepts.
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Source: SAT News
