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
U.S. Space
Dominance Drives Military Satellite Market
NEWTOWN, Conn. [April 7, 2005] —Some
118 dedicated military satellites worth $41 billion are earmarked for
production over the next 10 years, according to Forecast International’s “Western
Military Satellites: 2005-2014” report. These systems range in size
and price from the small and affordable French Spirale spacecraft to the large
and expensive U.S. Wideband Gapfiller and Advanced EHF satellites.
The United States enjoys an
asymmetrical advantage in the military space arena that either eliminates or
promises to remove any tactical advantage an adversary might attempt to
employ. This lack of balance in the world military satellite inventory and in
military space capabilities in general will drive the international military
satellite market in the years to come.
“Military satellite contracts are
the lifeblood of manufacturers, as the commercial satellite industry continues
to stagger through the land of no demand,” said John Edwards, Forecast International
Space Systems Analyst. This symbiotic relationship is especially powerful in
the United States, where military space programs enjoy strong and steady streams
of funding. Even Pentagon programs that have experienced substantial cuts over
the past few years are still robustly funded in comparison to European
programs.
In the United States alone,
military contracts scheduled for the next 10 years but not yet awarded total more
than $6 billion. In addition, the massive GPS and Transformational Communications
programs currently under way in the U.S. will provide a comparatively cushy
fiscal pillow for local manufacturers like Boeing, Lockheed Martin and Northrop
Grumman to fall back on during this prolonged commercial downturn.
“This reliance on military
contracts is good for U.S. manufacturers,” Edwards said, “but it does not
portend the same windfall for European manufacturers.” During the forecast
period, European military satellite production is expected to account for 22
spacecraft worth just over $2.4 billion. In terms of this analysis, the $2.4
billion represents just 6 percent of the market share during the forecast
period, while, in terms of production, the 22 spacecraft represent 19 percent
of market share.
The use of space to obtain the
ultimate high ground in military operations continues to grow, as measured not
only in actual production of military space systems but also in the formulation
of counterspace doctrines around the globe. Military satellite communications,
precision GPS-guided munitions, and optical and radar reconnaissance spacecraft
are the new foot soldiers of the 21st century battlespace. Dependence on these
systems has been firmly established in the United States and, to a limited
extent, in Europe as well.
The market for military
satellites will remain vigorous 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 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, $345 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 U.S. for years to
come.