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 Analysis of the US Government Commercial Satellite Market 

  • December 2015
  • -
  • Frost & Sullivan
  • -
  • 41 pages

Summary

Table of Contents

Analysis of the US Government Commercial Satellite Market : Government Spending Remains Strong Despite Decreased Military Activity

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 UAVs, and monitor locations on a global level. Additionally, the US government continues to use more satellite bandwidth within North America for training and backup purposes. This study analyses the US 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. A market share and competitive analysis identifies key satellite providers and their roles in the market. Market forecasts span 2015 to 2020.

Key Questions This Study Will Answer

-What is the outlook for revenue growth within the US government commercial satellite market?
-What factors are currently influencing the military market and how will they effect spending on satellite communications?
-Which regions are experiencing the most growth for satellite communications by the US government and military?
-What are the current political and military tension hot spots that could potentially increase US military demand for satellite communications?
-How are technology trends in the satellite industry effecting US government and military adoption/use of satellite communications?
-What are the key drivers and restraints influencing this market over the forecast period?



Key Findings

Despite the United States spending less on military activities, the country’s consumption of satellite communications (satcom) is anticipated to maintain a strong % compound annual growth rate (CAGR) on satellite services used for military applications and % CAGR for the entire government.

-By 2020, the US government will be spending $ million 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.

-Additionally, Department of Information Systems Agency (DISA) will remain an important component for government spending on satcom, accounting for slightly over % throughout the forecast period.

-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 US government.

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