Setback for the Maritime VSAT connectivity market due to Covid-19
In its latest research titled, “Prospects for Maritime Satellite Communications,” Euroconsult projects that the previously growing maritime connectivity market will experience a significant setback due to the Covid-19 pandemic. Maritime VSAT connectivity reached an all-time high of 28,200 connected vessels at the end of 2019 but because of the current health crisis, the previous projection of 49,300 terminals by 2023 has been reduced to 40,600 units. In 2019, the Maritime satellite VSAT communications market experienced high growth with the total number of terminals increasing by 17.5 percent year over year, and VSAT services revenue growing by 11 percent to approach $1.3 billion. Increasing demand from passengers, as well as regulatory pressure on communications and crew welfare were major factors pushing maritime operators to install new generation satellite systems on their vessels.
Xavier Lansel, Senior Consultant at Euroconsult and Editor of the “Prospects for Maritime Satellite Communications” research, noted that because of the current limits on international trade and the economic downturn resulting from the pandemic, new ship deliveries and the subsequent VSAT installations they entail are forecast to slow. Despite the presence of fixed contracts, docked vessels will likely result in a lower average revenue per user for connectivity services.
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