World Commercial Satellite Manufacturing Markets and Technology

The global commercial satellite market is looking up after hitting an all time low in 2002. The over-supply of transponders is being gradually absorbed and the high definition TV (HDTV) has just begun to generate interest. However, there are still certain challenges that need to be addressed. For instance, the capacity of individual commercial satellites has risen above the demand for commercial satellite services. On account of this and the long design lives, the number of orders for the replacements is yet to see a growth.

This Frost & Sullivan research service provides a comprehensive analysis of the commercial communication satellites manufacturing market. It provides insights into the key factors that drive growth and the challenges that need to be overcome to remain competitive in a dynamic market. The study also highlights technological trends, satellite operator preferences and future trends in the market.

Tapping New Markets Essential to Increase Revenues

Although the revenue per satellite has increased, the number of satellites has seen a considerable reduction, resulting in a flat revenue profile of the commercial satellite industry over the last few years. New applications hold the key for growth of the commercial communication satellites market. "There is no reason to believe that the number of satellites required is likely to increase significantly on the basis of current applications," notes the analyst of this research. "Manufacturers need to sustain revenues through new and not just expanded markets."

Vendors are primarily optimistic about broadband and HDTV distribution and broadcasting. The successful entry of these applications is likely to create a demand for more bandwidth, and thus additional satellites.

Satellites Offering Flexibility are Set to Boost the Market

In the late 1990s, the satellite manufacturers took initiatives to upgrade their satellites by building new factories and embarking on new expansion programs. Since then, satellite technology has seen a marked development in terms of flexibility apart from reduced weight and better design life. These flexible satellites use more adaptable antennas, on-board processing, multiple spot beams, and a number of other technologies to better tailor their coverage and serve a more diverse user set.

"At present, certain satellites are made to reconfigure their coverage and perform efficiently wherever their frequency is allowed," says the analyst. "These changes reflect efforts to increase spacecraft power while making satellites smarter and more flexible, and receiving antennas smaller and less expensive." In short, the industry is poised to capitalize on any increase in demand that is expected to occur with the entry of services such as the HDTV or broadband services.