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Satnews Daily
January 13th, 2016

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

[Satnews] 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 U.S. government continues to use more satellite bandwidth within North America for training and backup purposes. This study analyzes the U.S. 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. 

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

By 2020, the U.S. government will be spending 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 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 dependent than the military portion of the market.

The majority of the North American market is non-military , 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 U.S. government.

Read the full report: http://www.reportlinker.com/p03552611-summary/view-report.html