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

 

Civil and Commercial Remote Sensing Market Evolving to Meet Tomorrow’s Needs

 

NEWTOWN, Conn. [April 28, 2005] — According to Forecast International’s “The Market for Civil and Commercial Remote Sensing Satellites,” approximately 123 remote sensing satellites worth an estimated $14 billion are slated for production between 2005 and 2014.

 

“Efforts to protect the Earth’s natural resources are propelling the need for remote sensing satellites and the imagery products that they generate,” said John Edwards, Forecast International Space Systems Analyst.  

Underscoring this point was the devastation wreaked by the South Asia tsunami disaster in December 2004.  Satellite imagery revealed the hardest hit regions, allowing disaster relief organizations to concentrate their efforts within those areas.

“The need for these products is undeniable and is reflected in the state of the market, with nations worldwide busy developing their own systems,” Edwards said.

To meet this need, production lines will be very active in 2005 and will remain so through 2009 – an average of 17 spacecraft per year are expected to be produced over that five-year period.  The vast majority will be low-Earth-orbiting (LEO) satellites, with 12 such systems planned for 2005. The value of annual LEO satellite production within the first half of the forecast period will range between $255 million at the low end and $2.2 billion at the high end. Production of the seven geostationary Earth-orbiting (GEO) spacecraft planned for the same period is valued at approximately $1.3 billion. 

Manufacturing levels for GEO spacecraft will remain low, with only eight satellites currently planned through 2014. According to Edwards, “The majority of these are for civil programs funded by government institutions, and will facilitate the scientific and educational analyses of the Earth.”

On the international front, the Indian Space Research Organization’s IRS program continues to impress.  With five remote sensing satellites already in orbit, India is also planning to launch future IRS-2 and -3 series missions at a rate of about two per year, starting with the first, IRS-2A, in 2005.  The collaboration of China and Brazil on CBERS has also been very successful, and the two countries have vowed to continue cooperation on at least three future CBERS satellites.

“In the United States, the reliance on government contracts to invigorate the commercial remote sensing market could prove to be problematic in the long run,” Edwards said. While the supportive NextView contracts have enabled the procurement of second-generation satellites for DigitalGlobe and Orbimage, they now have approximately seven years to balance their commercial and U.S. government markets.  By this time these two firms will need third-generation satellites, but more importantly they will need non-government help sufficient to support construction of these spacecraft.  “One solution would be to go the route of Europe and use smaller spacecraft in constellations in order to reduce overall costs and increase revisit times,” Edwards said. This approach will serve Europe very well in the next 10 years, and Forecast International expects that the United States will begin to follow this model as well. 

Forecast International, Inc., is a leading provider of Market Intelligence and Analysis 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 market assessments utilized by strategic planners, marketing professionals, military organizations, and governments worldwide.  To arrange an interview with Forecast International’s analysts, please contact Monty Nebinger (203-426-0800, monty.nebinger@forecast1.com).