The potential value of the direct-to-cellphone business in the satellite communications market is a major topic of discussion. According to Euroconsult managing director Nathan de Ruiter, the addressable market could be worth over $100 billion. However, there are significant challenges to overcome before the direct-to-cellphone market can fully develop.

One major obstacle is the issue of device compatibility, as well as the availability of spectrum and service affordability. Many individuals who lack terrestrial network connectivity also have limited disposable income. Despite these challenges, de Ruiter believes that the direct-to-cellphone market is one of the key opportunities for the sector as a whole.

Euroconsult anticipates exponential growth in global satellite capacity, with fixed satellite service capacity set to surge sevenfold between 2023 and 2028. This increase in capacity will be largely driven by non-geostationary orbit constellations like Starlink and Oneweb. The expanded supply is expected to result in downward pressure on pricing.

In addition to capacity growth, the satellite services market is also seeing an increase in revenues. Euroconsult projects the global satellite services market to reach a value of $123 billion by 2032, up from $107 billion in 2022. Data services revenues are expected to nearly triple, while video demand is likely to see a slight decrease.

However, Euroconsult acknowledges potential turbulence in the market due to intense competition, a rapidly changing ecosystem, and rising insurance costs. Recent anomalies in geostationary orbit have had a significant impact, leading to concerns about the insurance market.

Overall, the satellite communications market is poised for significant growth and offers promising opportunities in the direct-to-cellphone business. However, challenges and uncertainties remain that will need to be addressed for this market to reach its full potential.