Earth Imaging Journal: Remote Sensing, Satellite Images, Satellite Imagery
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(Photo credit: NASA)

NSR’s Satellite Capacity Pricing Index, 4thEdition (Q1 2018) finds capacity prices falling for a third straight year as operators seek out innovative strategies to arrest the decline.  On average, capacity price declines for the period 2016-2018 ranged from 32-57% across various applications and regions, and the road ahead appears unclear as greater supply enters the scene, demand lags in some markets and competition intensifies.

Operators are now implementing strategies such as vertical-specific market entry partnerships and framework agreements on discounts, but these endeavors haven’t stopped the impact of the widening gap in supply-demand economics. This trend is further accentuated by the competitive sales positioning by operators in each region. NSR’s pricing forecast suggests the decline is not over yet, and despite 2019 expecting to see smaller decreases, the industry must wait longer for prices to bottom out.

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