NSR Report: Government and Military SATCOM Demand Persists Despite Changing Operational Paradigm
Troop Drawdown in Middle East Just One Factor Influencing Market Outlook
Cambridge, MA November 10th, 2021 – NSR’s newly released Government and Military Satellite Communications, 18th Edition report finds that despite COVID-19, troop drawdowns in the Middle East and ongoing pricing compression, demand for connectivity will continue to grow in the long term. At over $6.6B in revenue in 2020 – the market was at the tail end of its growth phase and is now entering a short-medium term shaped by many factors.
“2021 into 2024 will be a transitional period for Government and Military SATCOM,” states Brad Grady, Consultant at NSR and lead report author. “On the footsteps of ongoing supply-chain challenges, changing security objectives by major countries, and a slow re-architecture of space-based connectivity layers, the market is experiencing a dynamic set of drivers and restraints, all pushing towards a flatter revenue growth curve.
The need for connectivity is clear – however, macro-level factors like fewer boots on the ground vs. eyes in the sky vs. surging satellite capacity supply continue to alter the competitive landscape.” Emerging paradigms such as “Joint”, “Enterprise” and “Unified” are the new catchphrases for commercial industry to get their heads around. Meanwhile, budgets continue to be squeezed, and existing contracts are no longer an automatic renewal. Rounding it out, MILSATCOM vs. COMSATCOM and Bulk Leased vs. Managed Services are still very much factors ‘in-play.’
The next 3-4 years will be challenging for Gov & Mil spending – budgets are already stretched, but requirements for security and resiliency are increasing. This push and pull effect will only exacerbate the challenges facing mil/gov users as more satellite capacity is on the way but spending remains in a state of turbulence. From 2024 onwards, NSR does expect revenue curves to return to growth as the cyclical nature of geopolitics comes back into focus and the market attempts to move more towards a tenuous supply-demand equilibrium.
All told, Gov & Mil end-users will demand over 1 Tbps of throughput by 2030, up from 52 Gbps in 2020. Non-GEO HTS in MEO and LEO will drive the next-phase of satellite connectivity growth for Gov & Mil customers, combined with improved use-cases for narrowband IoT, and emerging requirements for GEO-based services. Combined, changing security and connectivity drivers will propel the market to over $86 Billion in cumulative Retail Revenues from 2020 to 2030.
About the Report
NSR’s Government and Military Satellite Communications, 18th Edition (GMSC18) explores the market opportunities available to the satellite industry. With nearly two decades of insights and analysis, NSR’s longest-running report on the Government & Military satellite communications market provides an in-depth view of the drivers, regional trends, and capacity demand through 2030.
For additional information on this report, including a full table of contents, list of exhibits, and executive summary please visit www.nsr.com or call NSR are +1 617 674-7743.
Companies Mentioned in the Report
Astra, Blue Origin, Eutelsat, Gilat, Hughes, Inmarsat, Intelsat, Iridium, Isotropic Systems, Kepler, L3 Harris, Lockheed Martin, Lynk, Myriota, NATO, Omnispace, OneWeb, Ovzon, Peraton, Rocket Lab, SES, ST Engineering iDirect, SatADSL, SpaceX, Spacecom, Speedcast, Telesat, Thinkom, Turksat, UK MoD, US Space Development Agency, US Space Force, Verizon Comtech Telecommunications Corp, and ViaSat.
NSR is the leading global market research and consulting firm focused on the satellite and space sectors. NSR’s global team, unparalleled coverage, and anticipation of trends with a higher degree of confidence and precision than the competition is the cornerstone of all NSR offerings. First to market coverage and a transparent, dependable approach sets NSR apart as the key provider of critical insight to the satellite and space industries.
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