2013 Final State of the Satellite Industry Report · Global satellite industry revenues have nearly...
Transcript of 2013 Final State of the Satellite Industry Report · Global satellite industry revenues have nearly...
State of the Satellite Industry Report June 2013
Sponsored by the
Prepared by
The Satellite Industry Association: 18 Years as the Voice of the U.S. Satellite Industry
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SIA MEMBER COMPANIES
Study Overview
• This is SIA’s 16th annual comprehensive study of satellite industry data
• Performed by The Tauri Group • Over 80 key companies were surveyed worldwide, including all
SIA members, augmented by market analysis and financial reporting
• Based on year-end 2012 data from major players, representing four satellite industry segments
• All data reflect global revenues, unless otherwise noted • Based on unclassified sources • Revenue is expressed as then-year U.S. dollars (not adjusted for
inflation)
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Satellite Services
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Ground Equipment
Satellite Industry Segments Surveyed
Launch Industry
Satellite Manufacturing
Global Satellite Industry Revenues
• Global satellite industry grew 7% in 2012, outpacing both worldwide economic growth rate (2.3%) and U.S. growth (2.2%)
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7%
2011 – 2012 Global Growth
$121.7 $144.4
$160.8 $168.0 $177.4 $189.5
$0
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2007 2008 2009 2010 2011 2012
Billio
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Global Satellite Industry Revenue ($ Billions)
Growth rate 15% 19% 11% 5% 6% 7%
The Satellite Industry in Context
• The global satellite industry is a subset of both the global telecommunications and space industries » Satellite industry = 62% of space
revenues (remainder primarily governmental space budgets)
» Satellite industry = 4% of telecommunications revenues
• Satellite industry growth tracks with both the telecommunications and space industries in 2012 » Telecommunications revenue growth
= 14% » Space revenue = 5% » Satellite industry = 7%
6 Sources: SIA “State of the Satellite Industry Report 2013”; Telecommunications Industry Association “2013 Playbook”; Space Foundation “The Space Report 2012.” All industry revenue figures are for 2012.
Telecommunications Industry
$4.9 Trillion
R&D 9%
Space Science
9%
Navigation 7%
Meteorology 3%
Military Surveillance
8% Remote Sensing
10%
Commercial Communications
38%
Government Communications
16%
The Satellite Network in Context
Operational Satellites by Function (as of 2012)
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• Over 1,000 operating satellites as of year-end 2012
» More than half are communications satellites
» More than one third are commercial communications satellites
• More than 50 countries operate at least one satellite (some as part of regional consortia)
Source: Tauri Group database of spacecraft and launch activities.
Top-Level Global Satellite Industry Findings
• Satellite industry revenue was $189.5 billion in 2012 » Growth of 7% worldwide in 2012, surpassing 6% in 2011
• All four satellite industry segments surveyed posted growth in 2012
» Satellite services, the largest segment, grew by 5%
» Satellite manufacturing revenues grew by 23%
» Launch industry revenues rose by 35% in 2012
» Ground equipment revenues increased by 4% in 2012
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Satellite Manufacturing
8% Launch Industry
3%
Satellite Services 60%
Ground Equipment
29%
World Satellite Industry Revenues By Segment: Long-Term Review
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Satellite Manufacturing
15% Launch Industry
5%
Satellite Services
50%
Ground Equipment
30% 2001
$64.4B
Global satellite industry revenues have nearly tripled since 2001, with an average 10% growth per year
3X
2001 – 2012 Global Industry
Growth
2012 $189.5B
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Satellite Industry Segments
Satellite Services • Consumer Services
» Satellite Television » Satellite Radio » Satellite Broadband
• Fixed Satellite Services » Transponder
Agreements » Managed Network Services
(including spaceflight management services)
• Mobile Satellite Services » Mobile Data » Mobile Voice
• Remote Sensing/Imaging Services
Global Satellite Services Revenue
11 Notes: Numbers may not sum exactly due to rounding. 1. Includes capacity for DTH satellite TV platforms. 2. Includes VSAT networks; Space Flight Management services included in Managed Services beginning in 2010
5%
2011 – 2012 Global Growth
2007 2008 2009 2010 2011 2012
TOTAL $72.6 $84.0 $92.9 $101.3 $107.8 $113.5 Consumer $57.9 $68.1 $75.3 $83.1 $88.6 $93.3
Satellite TV (DBS/DTH) $55.4 $64.9 $71.8 $79.1 $84.4 $88.4 Satellite Radio (DARS) $2.1 $2.5 $2.5 $2.8 $3.0 $3.4 Satellite Broadband $0.4 $0.8 $1.1 $1.2 $1.2 $1.5
Fixed $12.2 $13.0 $14.5 $15.0 $15.7 $16.4 Transponder Agreements (1) $9.6 $10.2 $11.1 $11.1 $11.4 $11.8 Managed Services (2) $2.6 $2.8 $3.4 $3.9 $4.3 $4.6
Mobile $2.1 $2.2 $2.2 $2.3 $2.4 $2.4 Voice $0.9 $0.9 $0.7 $0.7 $0.7 $0.7 Data $1.2 $1.3 $1.5 $1.6 $1.7 $1.8
Remote Sensing $0.4 $0.7 $1.0 $1.0 $1.1 $1.3
$0
$20
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$60
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$ billi
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Remote Sensing Mobile Fixed Consumer
Satellite Services Findings: Consumer Services Highlights
• Satellite services revenues grew 5% worldwide in 2012 (slightly lower than the 6% growth in 2011) to $93.3 billion U.S. dollars
• The consumer services segment was the largest contributor to overall satellite services revenues and consists of satellite television, radio, and broadband
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» Satellite television services (DBS/DTH) account for more than 80% of all satellite services revenues, and 95% of consumer revenues
» Satellite pay TV subscribers up 4%, driven by growth in emerging markets
» Over 160 million subscribers worldwide
» 40% of global revenues attributed to the U.S.
Satellite TV $88.4
Satellite Radio $3.4
Broadband $1.5
» Satellite radio (DARS) revenues grew by 13% in 2012
» Satellite radio subscribers grew 9% in 2012 to nearly 24 million
» Primarily U.S. customer base
» Satellite broadband service revenues increased from $1.2 billion in 2011 to $1.5 billion in 2012
» Subscribers grew 10% in 2012, with over 1 million subscribers (mostly in the U.S.)
» Subscriptions grew for established services, and several new services entered operations in 2012
Satellite Services Findings
• Fixed satellite services grew 4% » Transponder agreements revenues grew 3%, continuing the steady trend of recent
years » Managed services revenues grew 7%, slightly slower than last year’s 10% growth
• Mobile satellite services grew 3% » Mobile satellite voice revenues were flat » Mobile satellite data revenues grew 5%
• Remote sensing revenues grew 20% » U.S. government spending drove growth, along with better-than-expected performance
from industry leaders
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Case Study: Impact of HDTV on the Satellite Industry
• Increasing numbers of High Definition Television (HDTV) and cable distribution channels continued to drive revenues for satellite pay TV
• HDTV contributes to retail and wholesale services revenue by increasing transponder agreement revenues and consumer satellite TV revenues
• HDTV also drives ground equipment purchases • Nearly 60% of HDTV channels serve the Americas, with emerging growth in
Europe and Asia
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1,000
2,000
3,000
4,000
5,000
6,000
7,000
May 2008 May 2009 May 2010 May 2011 May 2012 May 2013
Num
ber of HDTV
Cha
nnels
31%
2011 – 2012 Growth
Source: LyngSat database.
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Satellite Industry Segments
Satellite Manufacturing
$4.8 $3.1
$7.6 $5.6 $6.3
$8.2
$6.8
$7.4
$5.8
$5.1 $5.6
$6.4
$0
$2
$4
$6
$8
$10
$12
$14
$16
2007 2008 2009 2010 2011 2012
$ billion
s
Non-United States
United States
Satellite Manufacturing Revenues
16 Note: Satellite manufacturing revenues are recorded by this study in the year the satellite is launched.
23%
2011 – 2012 Global Growth
• Worldwide 2012 revenues totaled $14.6 billion • U.S. market share neared 60% of global revenues
Commercial Communications
30%
Civil/Military Communications
20% R&D 7% Military
Surveillance 6%
Meteorological 4%
Navigation 11%
Remote Sensing 15%
Scientific 7%
Spacecraft Launched by Mission Type (2012)*
Europe, 22%
Russia, 16%
China, 23% Japan, 2%
USA, 32%
All other, 4%
Spacecraft Launched by Country/Region of Manufacturer (2012)
* Does not include government-built, university-built, and/or research satellites
Satellite Manufacturing Findings
• While revenue grew, fewer satellites were launched in 2012 (81) than in 2011 (90)
• Revenue growth was driven by a greater number of higher value satellites
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• U.S. satellite manufacturing revenues increased 31%
• U.S. firms built one third of the spacecraft launched in 2012, and earned nearly 60% of global satellite manufacturing revenues
• 61% of U.S. satellite manufacturing revenues from U.S. government
Based on unclassified sources
Future Indicator: Commercial Satellite Manufacturing Orders
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U.S., 12 (67%)
Europe, 3 (17%)
China, 2 (11%)
Israel, 1 (5%)
2012 GEO orders:
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• Orders for 18 commercial GEO satellites were placed in 2012
• 12 orders were won by U.S. manufacturers
• This represents the largest share of announced orders won by U.S. manufacturers in over a decade
15 10 7
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12 12 6
11
11 12
18
16 9
12
0%
10%
20%
30%
40%
50%
60%
70%
80%
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5
10
15
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25
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35
40
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2006 2007 2008 2009 2010 2011 2012
Num
ber of satellites ordered
U.S. GEO orders
All other GEO orders
U.S. share announced (%)
Case Study: Manufacturing Trends - Innovation in Spacecraft
• High throughput satellites (HTS) combine the use of several technologies for far greater efficiency, including frequency re-use, spot beams, and on-board processing to maximize available spectrum » 22 HTS ordered and/or being manufactured » 18 currently on orbit
• All-electric propulsion provides a significant reduction in satellite weight, but requires more transit time to reach final orbit » For the first time, orders were placed for all-electric propulsion
commercial GEO communications satellites in 2012
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Satellite Industry Segments
Launch Industry • Launch Services • Launch Vehicles
$1.0 $1.1 $2.0
$1.2 $1.4 $2.2
$2.2 $2.8
$2.7 $3.2
$3.4
$4.3
$0
$1
$2
$3
$4
$5
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$7
2007 2008 2009 2010 2011 2012
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U.S
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All Other
United States
Satellite Launch Industry Revenues
• $6.5 billion global revenues in 2012 from commercially-procured launches • U.S. market share was 35% of global revenues; derived almost entirely
from government launches
21 Note: Launch Industry revenues are recorded by this study in the year the launch is conducted.
35%
2011 – 2012 Global Growth
GEO 58%
LEO 34%
MEO 8%
Satellite Launch Industry Findings
• Satellite launch industry revenues increased by 35% globally in 2012, compared with 10% in 2011 » Despite fewer satellite launches in 2012, revenues grew due to more launches of larger
and more expensive vehicles » Government customers remained the major satellite launch revenue driver in 2012,
accounting for 64% of commercially-procured satellite launch revenues » This marked a slight increase from the 59% government share in 2011
• The U.S. had the largest share of all commercially-procured launches, nearly all from launching U.S. government satellites
• The number of commercially-procured launches remained relatively stable. 52 launches occurred in 2012, compared to 56 launches in 2011
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2012 commercially-procured launches by
orbit
Future Indicator: Commercial Launch Orders
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U.S. 8
Europe 11
Russia 2
China 2
Multi 1
India 1
2012 orders:
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• Orders to launch 25 commercial payloads were placed in 2012
• 8 payload launch orders were won by U.S. companies, up from 3 ordered in 2011
• Europe retained the largest share of commercial launch orders
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6 31
15
20
3
8
0%
10%
20%
30%
40%
50%
60%
0
10
20
30
40
50
60
2006 2007 2008 2009 2010 2011 2012
Num
ber of laun
ches ordered
U.S. commercial launch orders
All other commercial launch orders
U.S. announced share (%)
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Ground Equipment • Network Equipment
» Gateways » Control stations » Very small aperture
terminals (VSATs) • Consumer Equipment
» Satellite TV dishes » Satellite radio equipment » Satellite broadband dishes » Satellite phones and mobile satellite
terminals » Satellite navigation stand-alone
hardware
Satellite Industry Segments
World Ground Equipment Revenues
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Includes: Network Equipment — Gateways, Network Operations Centers (NOCs), Satellite News Gathering (SNG) equipment, flyaway antennas, and Very Small Aperture Terminals (VSATs) Consumer Equipment — Satellite TV, radio, and broadband equipment, mobile satellite terminals, and stand-alone satellite navigation devices, not including chipsets used in devices (such as smartphones) whose primary use is not satellite navigation
4%
2011 – 2012 Global Growth
$7.6 $9.9 $11.9 $12.2 $12.2 $12.8
$20.8
$29.4 $31.1 $31.9 $32.2 $32.2
$5.9
$6.7 $6.9 $7.5 $8.4 $9.8
$0
$10
$20
$30
$40
$50
$60
2007 2008 2009 2010 2011 2012
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Network Equipment
Satellite navigation equipment
Satellite TV, radio, broadband, and mobile equipment
Ground Equipment Findings
• Ground equipment revenues increased 4% overall in 2012 • Network equipment revenues grew 17%, driven by VSAT sales • Satellite TV, broadband, radio, and mobile voice and data equipment
revenues grew 5%, and the number of terminals in service grew across all segments in 2012
• Satellite navigation equipment represents nearly 60% of overall ground equipment revenue, with a migration away from stand-alone to embedded chipsets
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Satellite TV 160.2
Broadband 1.4
Satellite Radio 23.9
Mobile Voice and Data 2.6
Term
inal
s in
Ser
vice
(m
illio
ns)
U.S. Employment Estimates (Private Employment Only) • Satellite industry employment in the U.S. decreased by 1% in 2012, compared to a 2% loss
in 2011 • U.S. satellite companies shed a little over 20,000 jobs between 2007 and 2012, an 8% loss • Three of the four satellite industry segments experienced job losses in 2012
» Satellite Services added 5,035 jobs, or +7% (2011: -2.4%) » Satellite Manufacturing employment declined by 1,549 jobs, or -6% (2011: -3%) » Launch Industry employment declined by 1,246 jobs, or -2.2% (2011: -2.2%) » Ground Equipment employment decreased by 3,647 jobs, or -4% (2011: -0.7%)
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0
50,000
100,000
150,000
200,000
250,000
300,000
2007 2008 2009 2010 2011 2012
Num
ber o
f job
s
Satellite Services Satellite Manufacturing Launch Industry Ground Equipment
Source: U.S. Bureau of Labor Statistics (BLS). All figures are preliminary estimates for 2012 based on figures through Q3 2012. Data will be updated for full-year 2012 in Fall 2013.
Consumer $93.3
Fixed $16.4
Mobile $2.4
Remote Sensing, $1.3
2012 Satellite Industry Indicators Summary
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$189.5B 2012 Global Revenues
7%
Growth 2011 – 2012
Satellite Manufacturing
$14.6B
Launch $6.5B
Ground Equipment
$54.9B
Satellite Services $113.5B
5%
23%
4%
35%
Satellite Services $113.5
Ground Equipment
$54.9
Satellite Manufacturing
$14.6
Launch Industry
$6.5 Consumer
(GNSS) $32.2
Consumer (Non-GNSS)
$12.8
Network $9.8
U.S. $8.2
U.S. $2.2
Non-U.S. $4.3
Non-U.S. $6.4
• Satellite industry revenue was $189.5 billion in 2012 » Growth of 7% worldwide in 2012 » Surpassed 6% growth rate in 2011 » The satellite industry fares well with tracking
industries
• All four satellite industry segments surveyed posted growth in 2012 » Satellite services, the largest segment,
grew by 5% - consumer services continues to be a key driver for the overall satellite industry
» Satellite manufacturing revenues grew by 23%, due to proportionally more expensive commercial GEO and government satellites in 2012
» Launch industry revenues rose by 35% in 2012, even with fewer overall launches, but with more commercial launches and more expensive heavy government launches than 2011
» Ground equipment revenues increased by 4% in 2012, with slowing growth in consumer equipment and increasing growth in network equipment
$121.7 $144.4
$160.8 $168.0 $177.4
$189.5
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ons
Global Satellite Industry Revenue ($ Billions)
Top-Level Global Satellite Industry Findings
29 2011 – 2012 Global Growth
7%
Contact
Previous reports are available at www.sia.org
For more information on the satellite industry,
please contact [email protected]
Satellite Industry Association 1200 18th Street, NW
Suite 1001 Washington, DC 20036
202-503-1560
The Tauri Group space.taurigroup.com
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