US Government Satcom Spending to Increase at a Steady Rate

[Via Satellite 01-12-2016] ReportLinker has released a new study titled “Analysis of the U.S. Government Commercial Satellite Market.” This study analyses the U.S. government commercial satellite market, providing a look at the trends affecting adoption/use of satellite communications, including regional hot spots of political and military concern.

Although the United States is spending less on military activities, spending on satellite communications continues to increase at a steady rate. This is due to the continued need to retain communications, operate Unmanned Aerial Vehicles (UAVs), and monitor locations on a global level, according to the report. Additionally, the U.S. government continues to use more satellite bandwidth within North America for training and backup purposes.

According to the report, by 2020, the U.S. government will be spending more per year on satcom than in 2014. This will result in major opportunities for leading satellite service providers to experience significant growth over the forecast period, according to the study. Additionally, the Department of Information Systems Agency (DISA) will remain an important component for government spending on satcom.

While military spending on satcom is expected to grow at a rapid place, non-military spending is expected to be largely stagnant. The non-military portion of this market is focused on small applications and emergency backup, and is thus less bandwidth demanding than the military portion of the market. The majority of the North American market is non-military focused, thus, it is subject to less growth than other regions, such as the Middle East and Africa. Regions with the most political tension have the highest likelihood of requiring military satcom from the U.S. government.