Commercial Space Products and Services
The total revenue for commercial satellite services in 2009 is estimated at $## billion, #% more than the $## billion figure in 2008. Commercial satellite services continue to drive growth in the satellite industry due to increasing demand for satellite capacity despite global economic challenges. This calculation does not include GPS-related revenue, which is counted in the ground equipment sector.
The satellite positioning market is extremely large, with estimates of the total revenues from equipment and services ranging as high as $## billion a year, according to a 2008 study from ABI Research. Since there is no direct usage fee for the positioning signal provided by the GPS satellites, these revenues flow from user equipment, software applications, and secondary services related to such applications. The equipment market is discussed with other ground equipment and the associated revenues are included in the ground equipment revenues.
Broadly defined, the Earth observation market includes revenues from applications as varied as weather forecasting, intelligence-gathering, highway inspections, climate change studies, and commercial uses in agriculture, fishing, mining, construction, and public health. Based on BCC Research revenue data, the estimated total global expenditure for this overall satellite-based Earth observation market in 2008 was $## billion, a #% increase from $## billion in 2007. Weather forecasting and intelligence-gathering applications experienced the highest growth rates, approximately #% and #%, respectively.
The key components of FSS revenues are video distribution and data communications, which include both private enterprise networks using VSATs and consumer broadband access. VSAT networks use FSS capacity, and the revenues from those services are captured in the FSS section. VSAT operators also provide hardware and network management services. The newest area of data communications, consumer broadband Internet access, is small but growing in importance. In 2008, the primary market for broadband to the home was in North America, where…
FSS includes the provision of satellite capacity for a range of applications from video distribution to relaying telephone signals, and integrated voice/data services on private networks which often use very small aperture terminals (VSAT networks). Estimated 2008 revenue for FSS is $## billion. This value is based on actual data reported as of January 2009, and past years’ data from SIA.
Total revenue for space products and services in 2008 is estimated at $## billion, ##% more than the $## billion in 2007. This estimate takes into account the transition of GPS revenues to the ground equipment sector, as noted above. Space products and services encompass commercial satellite services and in-space activities such as orbital and suborbital commercial transportation services. The exhibit below shows 2008 revenue estimates for this sector.