Space Industry to Pass $100 Billion in 2004, Continued Growth Forecast
(Source: International Space Business Council; issued Feb. 4, 2004)
WASHINGTON --- The global space industry continued to grow in 2003, fueled by a significant increase in U.S. military contracts and continued growth in its commercial markets. According to the ‘2004 State of the Space Industry,’ a recently released publication of the International Space Business Council, the industry generated $96.9 billion in revenues in 2003 and is expected to reach $104.6 billion in 2004.

Among its conclusions are that a rebound in commercial orders for satellites and launch vehicles, combined with an increasing U.S. Department of Defense budget for space systems, and a rise in consumer satellite services are driving the industry toward greater growth.

According to Scott Sacknoff, author of the report, “As we begin 2004, there is a sense of optimism when it comes to the space and satellite marketplace. We see that all of its core markets are on the upswing. Government funding for space is on the rise, commercial orders for satellites and launch vehicles have rebounded, and the uptake of consumer services for satellite TV, radio, and broadband are all increasing. Most importantly for the future, we see a number of new ventures, entrepreneurs and small businesses entering the marketplace.”

The report cites that for the industry, 2003 was a mixed year which saw China’s first manned launch, new rovers on the moon, the failure of the Space Shuttle, and the marketplace for commercial satellites and launchers trying to recover from a recent bottom.

The report also highlights that during the past year the market for high-resolution satellite imagery stabilized with the receipt of several high-profile U.S. government contracts for data; the GPS market will see continued growth as Europe’s Galileo navigation system later in the decade will entice the acquisition of dual-system equipment; and the validation of the market for digital satellite radio.

From an infrastructure point-of-view, the key has been an increase in the U.S. military space budget from $15 billion to more than $20 billion. It is estimated to grow to $26-28 billion by 2009 as the military replaces most of its existing space assets.

Financially, during 2003 nine companies saw stock market gains of 100% or better. In addition, there were 40 mergers and acquisitions valued at more than $18 billion and 25 debt and bank transactions that totaled $18 billion.

Published since 1996, the ‘State of the Space Industry’ has been identified as a key source for understanding the business and financial issues and trends facing space and satellite manufactures, suppliers, and service providers. (ends)

Government and Military Sectors to Continue Boost in Revenues for Commercial Satellite Services Market
(Source: Northern Sky Research; issued Feb. 4, 2004)
ORLANDO, Fla. --- Northern Sky Research today released its newest market survey and forecast report: "Government and Military Demand on Commercial Satellites." The report provides an in-depth overview of demand trends for commercial communications and satellite imagery in the globe over a six-year period by tracking government and military needs, as well as trends in governmental program development, to address the shortfall in bandwidth and remote sensing capabilities.

The report concludes that, from an estimated $690 million in revenues for 2003, the market is expected to reach $1.45 billion by 2008, yielding total revenues of $6.53 billion over a six-year period. Revenue growth is driven largely by U.S. Military demand as the Pentagon's bandwidth needs have increased 10-fold from the first Iraq War. The White House has also issued a new policy that will boost the U.S. remote sensing industry as it directed the National Imaging and Mapping Agency (NIMA) to use U.S. commercial satellite imagery as the primary source of data used for government mapping.

"These developments in the United States will impact the industry in many profound ways. Specifically, a trend is already occurring where business units are being spun-off to target the government sector more deliberately and more aggressively. The growing competition for the government and military's business should favor governments over time, including a reduction of equipment and service costs as longer term contracts begin to replace purchases in the short-term or spot market," stated Jose del Rosario, senior analyst of Northern Sky Research and author of the report.

In terms of global (non-U.S.) demand, revenue streams are expected to be healthy as well. However, non-military use, specifically initiatives in satellite communications services to bridge the Digital Divide, will be the main source of revenue streams, which is the reverse of U.S. market trends. In the area of remote sensing, non-military government markets are expected to account for the bulk of revenues as well.

"The bread-and-butter of the global (non-U.S.) remote sensing industry remains in the civil sector of government entities, and this trend is expected to continue over the course of the forecast period. Many private remote sensing operators are expected to continue to rely heavily on tapping government civilian programs as commercial markets continue to develop at a slow pace," said del Rosario.

From a regional comparison, the report forecasts that the United States will continue to dominate the market until 2008. From 77% of all revenues in 2003, the United States is forecasted to account for 69% of overall revenues in 2008 and 73% of cumulative revenues over a six-year period. The relative decline of the U.S. percentage annually will be due largely to the U.S. Military's recognition that it needs to boost its own internal resources and become less reliant on commercial resources in order to more effectively conduct war, peacekeeping efforts and homeland defense initiatives.

Northern Sky Research is an international market research and consulting firm specializing in satellite technology and applications. Northern Sky Research primary areas of expertise include satellite technology, IP applications, and broadcast services. With extensive expertise in all regions and a number of broadband sectors, Northern Sky Research is a leading provider of in-depth market insight and analyses.


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