Enterprise VSAT market to grow at 12.2 percent CAGR during 2011-2015

Telecom Lead India: TechNavio forecasts that the
enterprise VSAT market to grow at a CAGR of 12.2 percent during 2011-2015. Main
vendors in the enterprise VSAT market include Hughes Network Systems, Gilat
Satellite Networks, ViaSat, and iDirect.

 

Hughes leads global VSAT industry with 50% market share

 

Recently, COMSYS, a research organization on satellite
industry, said Hughes Network Systems leads the global VSAT market with 50
percent market share. Hughes Network is the dominant provider in both
enterprise and consumer industry segments by a wide margin. Hughes’ market
share in the global enterprise terminal market is double its nearest
competitor.

 

According to TechNavio, absence of terrestrial offerings
in many geographical regions across the globe will be one of the key factors
contributing to this market growth.

 

The global enterprise VSAT market has been witnessing
vendors providing products which can connect both to terrestrial and satellite
services. Competition from terrestrial offerings and issues such as jitter,
latency and interruption from radio frequency may pose challenges to the growth
of this market.

 

One of the trends being witnessed in the global
enterprise VSAT market is equipment vendors providing routers with both
terrestrial and satellite capabilities. Enterprises are using terrestrial
services for their day-to-day business functions; however, they use VSAT
services in case of any system outage.

 

The report from TechNavio said advanced routing protocols
such as virtual router redundancy protocol (VRRP) allows two routers to reside
on the same network and provide backup if one fails. Such advanced routing
protocols allow network engineers to incorporate VSATs into their terrestrial
networks, which show network integration between VSAT and terrestrial networks.

 

According to the report, high return on investment provided
by adopting VSAT solutions is one of the key growth drivers in the Global
Enterprise VSAT market. VSAT services are terrain-independent and hence are
cost insensitive to distance, making the calls made on VSAT networks very
cheap.

 

editor@telecomlead.com

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