Press Release
Contact: John Edwards, Space Systems Analyst
Phone: (203) 426-0800
Fax: (203) 426-4262
Web site: www.forecast1.com
E-mail:
john.edwards@forecast1.com
Forecast International, Inc.
22 Commerce Rd. Newtown, CT 06470 USA
FOR IMMEDIATE RELEASE
Increasing Use of Milsats Expected as Countries Seek
the Ultimate High Ground
NEWTOWN, Conn. [April 12, 2004] —
Using space systems to obtain the ultimate high ground in military
operations has grown exponentially over the past decade and this growth shows
no signs of slowing down in the coming decade. According
to a recently released Forecast International market analysis, "Western
Military Satellites: 2004-2013," approximately 113 dedicated military
satellites will be produced over the next 10 years, having an estimated value
of $42 billion. These satellites range in size and cost from the
relatively small and affordable Israeli Ofeq communications satellite to the
U.S. National Reconnaissance Office's ORCA and Future Imagery Architecture
constellations, with their secretive budgets and designs.
During the recent wars in Iraq and Afghanistan, the U.S.
military leveraged space-based assets to the maximum. No country in the world
depends on space systems as its eyes and ears more than the United States,
which accounts for approximately 90 percent of global military space spending.
"Since the United States has evolved an
asymmetric military advantage in space, it is this factor more than any other
that will truly drive the international military satellite market in the years
to come," said John Edwards, Forecast
International space systems analyst. "However," he added, "competing
in this arena is a costly enterprise, and while the United States moves forward
alone, Europe continues to develop systems through cost-sharing partnerships."
Pooling resources in exchange for shared data or satellite
tasking time allows European countries to expand their satellite capabilities
without increasing their expenses. This approach is especially useful within
the reconnaissance sector, where more satellites means more coverage, more
often. With that goal in mind, Italy, France, and Germany have established a
multilateral agreement by which they will exchange set periods of satellite
tasking rights on each other's reconnaissance satellites: Helios 2 and
eventually Pleiades from France, COSMO-Skymed from Italy, and SAR Lupe from Germany.
In the communications sector, the United Kingdom, France, and Italy are
separately developing their Skynet 5, Syracuse III, and Sicral milsatcoms,
respectively, but have agreed to bundle their services under a joint bid to
supply NATO's Satcom Post-2000 secure military communications network. The proposal
is currently under review with the NATO C3 Agency and, since full on-orbit capacity
is required by the end of 2005, a decision is expected this summer.
The continued consolidation and international cooperation
among the various European military satellite programs will keep production
numbers far below those in the United States during the forecast period. "This
forecast is based on the vast financial requirements anticipated for the transformational
process and the high-priority reconnaissance and defense programs under way
within the United States," Edwards said. The major production efforts in Europe
are expected to yield about 15 military reconnaissance spacecraft and another nine
military communications satellites.
The market for military satellites will remain vigorous and
lucrative over the next decade as nations continue to seek the proliferation of
space programs to augment their military for a tactical and strategic
advantage. In terms of unit production, the market for Western military
satellites may be rather small as compared with the commercial satellite
market, which is geared primarily toward production of communications and
remote sensing satellite constellations. However, the increasingly high
monetary value of these space systems, $377 million per unit on average, is
attractive enough to draw the major aerospace and defense contractors to this
market both in Europe and in the United States for years to come.
Forecast International, Inc., is a leading provider of
Market Intelligence and Analyses in the areas of aerospace, defense, power
systems and military electronics. Based in Newtown, CT, USA, Forecast
International specializes in long-range industry forecasts and innovative
marketing presentations, including regular 10-year forecasts. To arrange an
interview with Forecast International's analysts, please contact Monty Nebinger
(203-426-0800, monty.nebinger@forecast1.com).
