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Study: Communications Satellite Market Growing While U.S. Manufacturing Share Slips

By | August 14, 2007

      The global communications satellite market is expected to generate deliveries of nearly 300 satellites in the next 10 years, but the U.S. share of those orders could fall, Forecast International said in a study released Aug. 13.

      While demand for satellite services in growing, an increase in satellite size, power and service life actually has decreased the demand for satellites, according to “Commercial Communications Satellites, 2007-2016.”

      About 218 satellites for geostationary and medium Earth orbit valued at a total of $26 billion will be delivered. Low Earth orbiting market will see production of 69 spacecraft worth about $927 million, mainly generated by fleet replacement plans for Orbcomm and Globalstar.

      The U.S. share of the manufacturing market has eroded by about 30 percent throughout the last three years, Forecast International said. In 2004, 75 percent of all the commercial communications satellites ordered around the globe were awarded to three U.S. companies, while just three orders went to non-U.S. manufacturers.  In 2005, the U.S. share slipped to 63 percent, and in 2006 the number fell to 40 percent.

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