US Government Will Likely Remain Largest Buyer of Satellite Services

U.S. Capitol building.

[Via Satellite 01-20-2017] The United States government will likely remain the largest purchaser of commercial satellite services as global military tensions rise. With a Compound Annual Growth Rate (CAGR) of 3.6 percent, this market is stable but is expected to average $53.78 million per year through 2022, according to a new report by Research and Markets.

The U.S. government is the single largest purchaser of commercial satellite services in the world, and accounted for $1.34 billion in 2015. Global tensions and military conflicts around the world are driving the need for surveillance and information sharing. Thus, satellite demand fluctuates significantly with global U.S. relations; however, many of these regions, such as the Middle East and Africa, remain consistent, high-demand locations for U.S. military satellite communications. As a result, these contracts are highly competitive, with many organizations custom tailoring new satellites and ground hardware to meet the unique needs of the U.S. government/military.