The global satellite transponder market to grow at a CAGR of 8.63% during the period 2016-2020.
The report covers the present scenario and the growth prospects of the global satellite transponder market for 2016-2020. The market size estimation in the report is based on the total number of transponder units deployed in the satellites and on the utilization rates of the deployed transponders. The revenue calculations include the sales of the transponders as well as the cost of leasing the transponders. The forecast has been made on the basis of the number of satellites to be launched by the satellite operators during the forecast period.
A trend which is influencing market growth is the trade-off between performance and coverage. As the satellite industry is maturing and the operators are targeting a more dynamic and flexible market, the design complexities of the satellites are increasing. For instance, the Ka-band transponder is affected by the performance/coverage trade-off, where the link is highly susceptible to propagation impairments caused by rain and other atmospheric disturbances. An important factor in communication is the size of the antenna, which is inversely scalable to the square of the frequency. Various factors like antenna size, coverage, frequency band of the transponder, and power affect the performance of a satellite.
According to the report, a key growth driver is the rising demand for HTS. The HTS uses many small spot beams distributed across a particular service area. These beams help the satellite to link to small aperture earth stations at high data rates. Attenuation from rain has been a major challenge for many satellite links including the HTS. However, such satellites have developed sufficient rain fade margins to provide a good quality link. The transponders used in HTS can be of Ku and Ka bands. On an average, a typical HTS satellite should have many ultra-wideband transponders distributed along the beams with a bandwidth of 100Mhz.
Further, the report states that one challenge that could derail market growth is the fast evolution of the telecommunication network. In satellite communication, the average price of leasing satellite adds up the TCO. The GSM infrastructure cost is profitable compared to the average wholesale cost of $1.2 million per 36 MHz transponder on an annual basis.