Military satellite market valued at $168.1B over next decade
- By Defense Systems Staff
- Jan 25, 2013
The total value of the global military satellite market over the next decade is expected to be worth as much as $168.1 billion, according to ASD Reports, a market research firm.
The market is expected to grow at a compound annual growth rate of 3.9 percent over the coming decade from $11.8 billion in 2012 to $17.3 billion by 2022, the research firm said.
The demand for military satellites essentially is driven by the need for enhanced communication capabilities and intelligence, surveillance and reconnaissance requirements that deliver situational awareness to armed forces around the globe, according to the research firm.
As part of new spending strategies to cope with budget cuts, defense departments around the world are exploring alternatives to reduce their costs. For this reason, the military satellite industry is gradually undergoing a transition towards selecting commercial providers against defense agencies for its programs, the research firm said.
The North American and European regions account for an estimated 80 percent of global defense spending, according to the research firm. These countries are among the hardest hit by the global financial crisis. In response, the governments of these nations have put in place stringent measures, which have resulted in reduced defense budgets and the cancellation and delay of various military satellite programs.