December 15, 2009 15:20 ET

Government and Military Demand for Commercial Satellites: Mind the Gap

New NSR Report Forecasts Government/Military SatCom Applications to Create $9.2 Billion Commercial Market by 2018

CAMBRIDGE, MA--(Marketwire - December 15, 2009) - According to NSR's newest market research and forecast report, "Government and Military Satellite Communications (GMSC), 6th Edition," users want more capacity and coverage as the gap between demand and transponder supply is growing, which will shift the market towards one of two solutions: proprietary or commercial systems. This gap should propel the commercial GMSC market alone from $3.5 billion in 2008 to $9.3 billion at the end of 2018, driven in large part by land-mobile narrowband units and revenues from unmanned aerial vehicles (UAVs) and communications-on-the-pause (COTP) services.

Revenue does not tell the only story though, as NSR's forecast sees growth in some markets and warning flags in others. "In an economic downturn that readjusted priorities in public spending and tightened the race for dollars, the government and military commercial satellite market has developed a growing following with bright spots related to future demand in key application markets," stated Claude Rousseau, Senior Analyst for NSR and author of the report. "One warning flag concerns commercial satellite transponder bulk leasing, which will compete more heavily against internal military capacity," said Rousseau.

NSR's comprehensive analysis of Government and Military demand trends covers eight regions of the world for equipment and services, as well as demand for bulk transponder leasing, fixed VSATs, communications-on-the-move (COTM), COTP and narrowband mobile services. It finds that replacements for cancelled programs such as TSAT will eventually be found; however, commercial satellites will still be required to partially fill the gap in demand with capacity and new, innovative and flexible solutions.

Global programs and initiatives by institutional customers will have a lasting impact on capacity demand in the GMSC market, and deployment of troops called into action in the short-term will give a reprieve to operators from longer-term negative trends. While applications in the market have a promising future to varying degrees, the overall NSR assessment points to the bottom line for each segment and offers a unique view for those looking for the right angle to address the GMSC market.

The reports examines demand for all commercial frequencies (C-, Ku-, Ka-, L- and X-band) and for all mobile (aeronautical, UAVs, maritime, and land-mobile) and VSAT platforms. Beyond these segmentations, the report's region-by-region analysis of applications and transponder demand, and the high-granularity outlook on future growth in this high barrier-to-entry market, provide information that is second-to-none.

About the Report

"Government and Military Satellite Communications, 6th Edition" is a multi-client report now available from NSR. The report provides extensive forecasts for in-service units, retail and wholesale equipment and service revenues, transponder demand and associated revenues spanning 8 distinct regions, all aimed at providing maximum value to the reader. In order to gather all the subtleties of this multi-dimensional industry, NSR gathered extensive current and historical data on capacity, equipment prices, subscribers and revenues per user, as well as transponder prices for all regions of the globe. For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit or call NSR at 617-576-5771.

About NSR

NSR is an international market research and consulting firm specializing in satellite, wireless and media markets. NSR's primary areas of expertise include emerging technology, IP applications, and broadcast services. With extensive expertise in all regions and a number of broadband sectors, NSR is a leading provider of in-depth market insight and analyses.