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Maritime Service Provider Connectivity Rankings in 2017

In Valour Consultancy’s latest maritime connectivity report, “The Future of Maritime Connectivity – 2018 Edition”. It is estimated that, globally, there were over 262,500 active maritime satellite terminals (VSAT and L-band) by the end of 2017. This equated to a satellite connectivity retail market worth over $1.5 billion.

The number of VSAT terminals were estimated to account for just nine per cent of the global subscriber base in 2017, but associated revenues accounted for more than $1 billion, or 68 per cent of total revenues. L-band connectivity services generated $504 million in the same period.

A key question asked by many people in the industry is “How Did the Key Players Perform in 2017?”

Summary of 2017

  • Marlink made significant progress in the maritime connectivity market, winning many of the tenders it participated in. The firm was the largest supplier of retail maritime satellite services in 2017, with associated revenues of $340 million. It is believed 70 per cent of the top 50 merchant shipping companies subscribe to its services.
  • Speedcast completed the purchase of Harris Caprock in 2017 and will likely complete the acquisition of Globecomm before the end of 2018. The firm will become the second largest supplier of retail connectivity in 2018.
  • Inmarsat plays a prominent role in the maritime market and generated more than $564.7 million in the market overall – both through its wholesale and retail offerings in 2017. Valour Consultancy estimates the British satellite firm derived more than $200 million of revenues via direct channels in 2017.
  • Global Eagle continues to make steady progress in the industry, with its primary focus on passenger and leisure vessels. In July 2017, the firm introduced a new luxury brand called PRIVA, which replaces the legacy MTN brand that operated its yacht connectivity business.
  • Navarino had deployed 6,000 of its Infinity boxes (which support L-band and VSAT services) at the end of 2017, 60 per cent of which are served directly by Navarino. The firm also uses third-party maritime service providers for the remainder of its business. The firm held fifth position in the global maritime service provider market and accounted for 6 per cent of market revenues.

Deep-Dive

Marlink was the largest supplier of retail maritime satellite services in 2017, representing 22 per cent of global maritime service revenues. More than 65 per cent of the firm’s revenues were derived from VSAT connectivity services, and the remainder for L-band services; making Marlink the second largest global L-band reseller in the market in 2017.

The firm has enjoyed an enormously successful period in the merchant shipping sector, with more than 50 per cent of its business originating from this sector. Marlink caters connectivity solutions to more than 20,000 terminals. globally. In addition, the group has made several astute company acquisitions over the years, which include Telemar, Palantir, Livewire Connections and OmniAccess, all of which operate under the umbrella Marlink Group.

Inmarsat plays a dual role in the maritime market, one as a service provider serving customers directly and the other as a satellite operator, providing wholesale Ka-band and L-band capacity to service providers, as well as some Ku-band (legacy business). As a direct service provider, Inmarsat generated more than $200 million in 2017, accounting for 13 per cent of total revenues. The majority of the firm’s maritime revenues are derived from its L-band business; with its Fleetbroadband service generating slightly under $350 million in 2017. Its direct retail VSAT business generated more than $55 million in 2017. This will change significantly over the next few years as companies likes Navarino, Speedcast, Marlink and other service providers complete on their pledges to convert their existing L-band and Ku-band vessels to FX. Merchant, energy and fishing were Inmarsat’s largest applications in respective order of revenues.

The rise of Speedcast in the maritime satellite connectivity market over the last few years has been pronounced, particularly after the acquisition of Harris Caprock’s maritime business in 2017. In total, Valour Consultancy estimates Speedcast accounted for 12 per cent of maritime connectivity service revenues in 2017, representing global revenues of $186 million. Readers should note that we excluded a high portion of the firm’s revenues from the energy division due to its services to fixed platforms.

By the end of 2017, Navarino generated, globally, nearly $87 million in maritime connectivity service revenues, $37 million of which were associated with VSAT services. The service provider was actually Inmarsat’s top performing FX partner for all the quarters in 2017, surpassing Marlink and Speedcast’s FX installations. Nearly $50 million of its revenues were from L-band, primarily from Inmarsat’s Fleetbroadband offerings. The firm also provides some of Iridium’s Open Port packages, although this represented only a small number of its L-band deployments. Valour Consultancy estimates Navarino placed third in the L-band maritime connectivity service provider market in 2017, and thus represented 10 per cent of the L-band service provider market revenues.

Valour Consultancy presents the global rankings of the maritime connectivity service provider in 2017

Maritime Service Provider Connectivity Rankings in 2017

For more information about the full report, contact us here.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="4825|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="none" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]http://217.199.187.200/valourconsultancy.com/wp-content/uploads/2018/11/Antenna-1024x494-1.jpg[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text] In Valour Consultancy’s latest maritime connectivity report, “The Future of Maritime Connectivity – 2018 Edition”. It is estimated that, globally, there were over 262,500 active maritime satellite terminals (VSAT and L-band) by the end of 2017. This equated to a satellite connectivity retail market worth over $1.5 billion. The number of VSAT terminals were estimated to account for just nine per cent of the global subscriber base in 2017, but associated revenues accounted for more than $1 billion, or 68 per cent of total revenues. L-band connectivity services generated $504 million in the same period. A key question asked by many people in the industry is “How Did the Key Players Perform in 2017?” Summary of 2017
  • Marlink made significant progress in the maritime connectivity market, winning many of the tenders it participated in. The firm was the largest supplier of retail maritime satellite services in 2017, with associated revenues of $340 million. It is believed 70 per cent of the top 50 merchant shipping companies subscribe to its services.
  • Speedcast completed the purchase of Harris Caprock in 2017 and will likely complete the acquisition of Globecomm before the end of 2018. The firm will become the second largest supplier of retail connectivity in 2018.
  • Inmarsat plays a prominent role in the maritime market and generated more than $564.7 million in the market overall – both through its wholesale and retail offerings in 2017. Valour Consultancy estimates the British satellite firm derived more than $200 million of revenues via direct channels in 2017.
  • Global Eagle continues to make steady progress in the industry, with its primary focus on passenger and leisure vessels. In July 2017, the firm introduced a new luxury brand called PRIVA, which replaces the legacy MTN brand that operated its yacht connectivity business.
  • Navarino had deployed 6,000 of its Infinity boxes (which support L-band and VSAT services) at the end of 2017, 60 per cent of which are served directly by Navarino. The firm also uses third-party maritime service providers for the remainder of its business. The firm held fifth position in the global maritime service provider market and accounted for 6 per cent of market revenues.
Deep-Dive Marlink was the largest supplier of retail maritime satellite services in 2017, representing 22 per cent of global maritime service revenues. More than 65 per cent of the firm’s revenues were derived from VSAT connectivity services, and the remainder for L-band services; making Marlink the second largest global L-band reseller in the market in 2017. The firm has enjoyed an enormously successful period in the merchant shipping sector, with more than 50 per cent of its business originating from this sector. Marlink caters connectivity solutions to more than 20,000 terminals. globally. In addition, the group has made several astute company acquisitions over the years, which include Telemar, Palantir, Livewire Connections and OmniAccess, all of which operate under the umbrella Marlink Group. Inmarsat plays a dual role in the maritime market, one as a service provider serving customers directly and the other as a satellite operator, providing wholesale Ka-band and L-band capacity to service providers, as well as some Ku-band (legacy business). As a direct service provider, Inmarsat generated more than $200 million in 2017, accounting for 13 per cent of total revenues. The majority of the firm’s maritime revenues are derived from its L-band business; with its Fleetbroadband service generating slightly under $350 million in 2017. Its direct retail VSAT business generated more than $55 million in 2017. This will change significantly over the next few years as companies likes Navarino, Speedcast, Marlink and other service providers complete on their pledges to convert their existing L-band and Ku-band vessels to FX. Merchant, energy and fishing were Inmarsat’s largest applications in respective order of revenues. The rise of Speedcast in the maritime satellite connectivity market over the last few years has been pronounced, particularly after the acquisition of Harris Caprock’s maritime business in 2017. In total, Valour Consultancy estimates Speedcast accounted for 12 per cent of maritime connectivity service revenues in 2017, representing global revenues of $186 million. Readers should note that we excluded a high portion of the firm’s revenues from the energy division due to its services to fixed platforms. By the end of 2017, Navarino generated, globally, nearly $87 million in maritime connectivity service revenues, $37 million of which were associated with VSAT services. The service provider was actually Inmarsat’s top performing FX partner for all the quarters in 2017, surpassing Marlink and Speedcast’s FX installations. Nearly $50 million of its revenues were from L-band, primarily from Inmarsat’s Fleetbroadband offerings. The firm also provides some of Iridium’s Open Port packages, although this represented only a small number of its L-band deployments. Valour Consultancy estimates Navarino placed third in the L-band maritime connectivity service provider market in 2017, and thus represented 10 per cent of the L-band service provider market revenues. Valour Consultancy presents the global rankings of the maritime connectivity service provider in 2017 Maritime Service Provider Connectivity Rankings in 2017 For more information about the full report, contact us here. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

The Future of Maritime Connectivity – A Sneak Preview

In October 2018, Valour Consultancy will publish a long-awaited update to its maritime connectivity report. For those that simply cannot wait to get a hold of this information, we thought we’d share a sneak peek of our just-realised preliminary data…

Our statistics show that the global maritime connectivity market will continue to grow strongly in 2018, with annual service revenues projected to reach $1.6 billion by the end of the year. This represents a 5.4 per cent increase from 2017.

The VSAT portion of the market is anticipated to drive future growth, with MSS service revenues declining over the coming years. By the end of 2017, VSAT terminals accounted for only nine per cent of the installed base of vessels with some type of connectivity system installed. This will increase to 10 per cent by the end of 2018 and 18 per cent by 2027.

Revenues from VSAT terminal services represented 68 per cent of the total market (equivalent to some $1 billion) in 2017. Average monthly revenues per terminal for C-, Ku-, and Ka-band services differ considerably, however, and were recorded at $5,750, $3,078, and $2,757, respectively, in 2017. In comparison, average monthly service revenues for L-band terminals were just $169.

The passenger segment is a particularly lucrative market as many cruise and ferry line operators are seeking out greater satellite bandwidth capacities to match an ever-increasing demand from passengers to use Internet-enabled smartphones and tablets. Not only do people want to eat their breakfasts, lunches, and dinners; they wish to take pictures of them and post them on social media pages for all the world to see (or sea, if you pardon the pun).

In other maritime verticals, such as merchant, the desire to improve crew welfare is a major driver for the adoption of VSAT technologies for voice, video and email communications. Spending months away from friends and family without any communications can be sapping on morale and will likely lead to staff reconsidering their career or employment choices.

Another major driver within the shipping industry is the digitalisation of vessel operations and increasing operational efficiencies. One key cost saver is anticipating maintenance or repair work before a piece of machinery on the vessel breaks down out at sea, which is much costlier to fix than a vessel docked at a port.

Furthermore, people’s expectations are changing to the degree that not having the ability to access emails or messages is intolerable no matter where they are in the world, on land, at sea or in the air. This is a very notable trend in the leisure market. Yacht or smaller leisure boat owners want to continue with their normal life and business routines whilst sailing around the world. Access to connectivity is essential for them to achieve this.

The Future of Maritime Connectivity” report projects maritime connectivity service revenues will reach almost $2.1 billion by the end of 2027. The leisure and passenger segments are predicted to be the fastest growing areas. Indeed, ARPU for some of the biggest cruise vessels using VSAT systems is expected to easily surpass $30,000 per month.

Speedcast, the Australian service provider, has been very successful in the passenger market thanks in part to the 2017 acquisition of Harris Caprock and August 2018 purchase of Globecomm.

Within the next ten years, global VSAT terminal deployments will treble to more than 72,000 units. The Ka-band market is projected to record the biggest increase, expanding ten-fold from a small base of around 3,000 terminals at the end of 2017, to greater than 30,000 by 2027. In fact, Inmarsat recently revealed that it expects to carry out the 5,000th ship installation of its Fleet Xpress solution by the end of this month, which gives an idea of just how quickly this particular technology is being adopted.

With the prospects for VSAT in maritime incredibly rosy, it can be easy to overlook the MSS market. As such, the report also delves into the low-speed and no voice MSS segment (GMDSS and asset tracking) of the maritime communications market and provides forecasts for the broadband and voice portion (Fleet Broadband and OpenPort). Although VSAT is steadily cannibalising these markets across different maritime verticals, annual L-band service revenues are projected to decline at a slower rate than some might expect. Demand in the fishing, merchant and leisure sectors will continue to support this limited bandwidth technology.

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[fusion_builder_container hundred_percent="no" equal_height_columns="no" menu_anchor="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" background_color="" background_image="" background_position="center center" background_repeat="no-repeat" fade="no" background_parallax="none" parallax_speed="0.3" video_mp4="" video_webm="" video_ogv="" video_url="" video_aspect_ratio="16:9" video_loop="yes" video_mute="yes" overlay_color="" video_preview_image="" border_size="" border_color="" border_style="solid" padding_top="" padding_bottom="" padding_left="" padding_right=""][fusion_builder_row][fusion_builder_column type="1_1" layout="1_1" background_position="left top" background_color="" border_size="" border_color="" border_style="solid" border_position="all" spacing="yes" background_image="" background_repeat="no-repeat" padding_top="" padding_right="" padding_bottom="" padding_left="" margin_top="0px" margin_bottom="0px" class="" id="" animation_type="" animation_speed="0.3" animation_direction="left" hide_on_mobile="small-visibility,medium-visibility,large-visibility" center_content="no" last="no" min_height="" hover_type="none" link=""][fusion_imageframe image_id="4867|full" max_width="" style_type="" blur="" stylecolor="" hover_type="none" bordersize="" bordercolor="" borderradius="" align="center" lightbox="no" gallery_id="" lightbox_image="" lightbox_image_id="" alt="" link="" linktarget="_self" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]http://217.199.187.200/valourconsultancy.com/wp-content/uploads/2018/09/yacht-3480913_1280-min-1024x682-1.jpg[/fusion_imageframe][fusion_separator style_type="default" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" sep_color="#ffffff" top_margin="20" bottom_margin="20" border_size="" icon="" icon_circle="" icon_circle_color="" width="" alignment="center" /][fusion_text]In October 2018, Valour Consultancy will publish a long-awaited update to its maritime connectivity report. For those that simply cannot wait to get a hold of this information, we thought we’d share a sneak peek of our just-realised preliminary data… Our statistics show that the global maritime connectivity market will continue to grow strongly in 2018, with annual service revenues projected to reach $1.6 billion by the end of the year. This represents a 5.4 per cent increase from 2017. The VSAT portion of the market is anticipated to drive future growth, with MSS service revenues declining over the coming years. By the end of 2017, VSAT terminals accounted for only nine per cent of the installed base of vessels with some type of connectivity system installed. This will increase to 10 per cent by the end of 2018 and 18 per cent by 2027. Revenues from VSAT terminal services represented 68 per cent of the total market (equivalent to some $1 billion) in 2017. Average monthly revenues per terminal for C-, Ku-, and Ka-band services differ considerably, however, and were recorded at $5,750, $3,078, and $2,757, respectively, in 2017. In comparison, average monthly service revenues for L-band terminals were just $169. The passenger segment is a particularly lucrative market as many cruise and ferry line operators are seeking out greater satellite bandwidth capacities to match an ever-increasing demand from passengers to use Internet-enabled smartphones and tablets. Not only do people want to eat their breakfasts, lunches, and dinners; they wish to take pictures of them and post them on social media pages for all the world to see (or sea, if you pardon the pun). In other maritime verticals, such as merchant, the desire to improve crew welfare is a major driver for the adoption of VSAT technologies for voice, video and email communications. Spending months away from friends and family without any communications can be sapping on morale and will likely lead to staff reconsidering their career or employment choices. Another major driver within the shipping industry is the digitalisation of vessel operations and increasing operational efficiencies. One key cost saver is anticipating maintenance or repair work before a piece of machinery on the vessel breaks down out at sea, which is much costlier to fix than a vessel docked at a port. Furthermore, people’s expectations are changing to the degree that not having the ability to access emails or messages is intolerable no matter where they are in the world, on land, at sea or in the air. This is a very notable trend in the leisure market. Yacht or smaller leisure boat owners want to continue with their normal life and business routines whilst sailing around the world. Access to connectivity is essential for them to achieve this. “The Future of Maritime Connectivity” report projects maritime connectivity service revenues will reach almost $2.1 billion by the end of 2027. The leisure and passenger segments are predicted to be the fastest growing areas. Indeed, ARPU for some of the biggest cruise vessels using VSAT systems is expected to easily surpass $30,000 per month. Speedcast, the Australian service provider, has been very successful in the passenger market thanks in part to the 2017 acquisition of Harris Caprock and August 2018 purchase of Globecomm. Within the next ten years, global VSAT terminal deployments will treble to more than 72,000 units. The Ka-band market is projected to record the biggest increase, expanding ten-fold from a small base of around 3,000 terminals at the end of 2017, to greater than 30,000 by 2027. In fact, Inmarsat recently revealed that it expects to carry out the 5,000th ship installation of its Fleet Xpress solution by the end of this month, which gives an idea of just how quickly this particular technology is being adopted. With the prospects for VSAT in maritime incredibly rosy, it can be easy to overlook the MSS market. As such, the report also delves into the low-speed and no voice MSS segment (GMDSS and asset tracking) of the maritime communications market and provides forecasts for the broadband and voice portion (Fleet Broadband and OpenPort). Although VSAT is steadily cannibalising these markets across different maritime verticals, annual L-band service revenues are projected to decline at a slower rate than some might expect. Demand in the fishing, merchant and leisure sectors will continue to support this limited bandwidth technology.[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]