|19 August, 2019

Energy sector revenues to hit $10bln by 2028: report

With over 80 transponders of FSS Capacity, and 75 Gbps of HTS capacity in GEO and non-GEO projected by 2028, capacity consumption continues to rise

Norwegian-owned Front Altair tanker is anchored offshore of the port of Fujairah in a satellite overview image over the United Arab Emirates, June 17, 2019. Courtesy Satellite image ©2019 Maxar Technologies/Handout via REUTERS.

Norwegian-owned Front Altair tanker is anchored offshore of the port of Fujairah in a satellite overview image over the United Arab Emirates, June 17, 2019. Courtesy Satellite image ©2019 Maxar Technologies/Handout via REUTERS.

Key energy markets, including onshore and offshore oil & gas, midstream pipeline distribution, mining, and electrical utilities, are forecasted to yield nearly $10 billion in cumulative revenues from 2018 – 2028, said a new report.

With growing demand for broadband data connectivity across nearly all segments, growth is right around the corner for the Energy SATCOM Markets, after years of stagnation and declines, added the 8th edition of Energy SATCOM Markets released by NSR, a leading global market research and consulting firm.

With over 80 transponders of FSS Capacity, and 75 Gbps of HTS capacity in GEO and non-GEO projected by 2028, capacity consumption continues to rise. While retail revenue growth remains in the low single-digits growth over the next ten years – the market continues to have bright spots and opportunities for those service providers willing to find them.

“All signs point to some form of a turnaround in the near future,” stated Brad Grady, principal analyst and lead author.

“While some markets such as Mining are showing flat growth, upstream Oil & Gas will account for nearly 50% of the new revenue opportunities in the coming decade. Driven in part by the need for higher throughput connectivity from GEO and Non-GEO, pricing stability over the past few months seems to have encouraged renewed investment into some exploration and production activities. Although not out of the woods yet, market fundamentals show signs of improving.

“Overall, we are starting to see new sites, applications, and requirements out in the market – a positive sign for growth ahead,” he added.

Upstream oil & gas markets remain the core opportunity, nearly $900 million in retail revenues projected by 2028. Utilities will add another $250 million+, and Mining will remain largely flat over the next ten years at just over $100 million in retail revenues.

On a capacity metric, non-GEO HTS and GEO-HTS Ku-band are the ‘growth enablers’ as satellite operators continue to build-out coverage maps, the report said.

FSS Ku-band will not be left out of the mix as a key building block for utility-centric networks. With a growing need for ‘more connectivity’ at all segments/slices of the energy markets, growth is coming in two-fold: more sites, and bigger/faster pipes.

Bottom Line, expect 2020 to be a ‘turnaround year’ for Energy SATCOM players as market stability returns, demand for connectivity continues to increase, and new connectivity choices are brought online over the next 10 years, the report said. – TradeArabia News Service

Copyright 2019 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Energy