NSR: Military Satellite Revenues will Double for Cost-Conscious Providers
By Jeffrey Hill | January 17, 2012
The government and military satellite industry will need to provide higher-level solutions for less cost in order to capitalize on a market set to nearly double in the next decade, according to an NSR report issued Dec. 15.
The analyst firm projects government and military satellite communications revenues to grow from an estimated $4.0 billion in 2010 to $9.4 billion by 2020, producing total revenues of $71.9 billion during an 11-year period.
While satellite Intelligence Surveillance Reconnaissance (ISR) services and tactical missions should see the highest boost for satellite providers, NSR warned the industry that increasing budget pressures are at the core of government decisions in choosing its preferred solution mix over the long-term.
“The budget crunch is becoming more pronounced and has taken centre stage in procurement decisions. As such, creative solutions including hosted payloads and public-private partnerships like the Paradigm-U.K. Ministry of Defense model may be some of the ways to move forward to address fiscal constraints,” according NSR Senior Analyst and Report Author Jose Del Rosario.
Del Rosario added his insight on how UAV solutions will factor into the budgetary environment. “Providing less expensive but higher throughput bandwidth for UAV missions and supporting instruments that enable greater accuracy is one of many opportunities the commercial satellite industry can target in cementing its long-term relationship with government and military entities.”