NSR Study: Cloud Service Delivery via Satellite to Generate $3 Bn by 2031

Mangata Networks - satellites

Cloud Service Delivery through Satellite, according to NSR’s newly released research, cloud hosting via Satellite, 3rd Edition (CCvS3), is expected to create $32 billion in revenue by 2031, with 240+ exabytes of traffic. The upcoming wave of LEO, MEO, and GEO-HTS satcom and data services is expected to improve long-term cloud adoption and increase market involvement potential dramatically.

Cloud will play an increasingly important role in bridging the gap between conventional upstream aerospace/satellite firms focused on producing spacecraft and sending them into orbit and downstream end users and intermediate layer organizations, where demand is generated.

“With the need to address user-specific requirements across verticals, cloud solutions adoption is expected to increase,” said Shivaprakash Muruganandham, co-author of the NSR report. “Cloud-hosted applications, cloud storage/processing by geospatial analytics providers, and direct cloud connectivity for satcom will all further growth in this market, evolving business models development.”

Growth Opportunities

As satellite operators compete to capture untapped addressable markets across verticals, from communications to data downlink and geospatial analytics, new collaborations and service rollouts would offer market capture and growth opportunity.

“The market for data downlink onto cloud servers towards EO applications is growing significantly,” said report co-author Prachi Kawade. “Driven by an increasing number of constellations and increasingly rich information driving toward higher volumes, particularly with HR and VHR data, be it SAR, hyperspectral or sub-meter resolution optical imagery, opportunity is set to broaden.”

While satcom cloud services account for 98 percent of data traffic, the volume of data traffic for Earth Observation, Situational Awareness, and science applications is increasing as large cloud and IT players make deeper inroads into the traditional satellite industry, shaking up the market ecosystem.

“Cloud adoption is lowering the barriers to entry for space-derived data services, especially on the downstream side of the market,” concluded Muruganandham. “With greater opportunities available to them than in the past, today’s start-ups born in the cloud are shaping the future of the satellite industry.”