New NSR Report: Obama Win Signals Administration Change, but Minimal Impact Expected in Military Demand for Commercial Satellite Services
| Source: NSR
CAMBRIDGE, MA--(Marketwire - November 12, 2008) - NSR today released its newest market survey
and forecast report: "Government and Military Demand on Commercial
Satellites, 5th Edition." The report provides an in-depth assessment of
military and government demand for commercial satellite communications
services from 2003-2018 by tracking application requirements around the
globe.
Many vendors anticipate a decline in U.S. Military demand for commercial
satellite services, and indeed President-elect Barack Obama has promised to
withdraw troops from Iraq within a 16-month period, or by mid-2010. The
impending pullout suggests limited presence and thus a decrease in military
needs for satellite services, at least from outsourcing capabilities to
commercial assets. However, President-elect Obama has likewise indicated
that in Afghanistan, troop levels should actually increase.
Based on these trends, the total mix of troops in Iraq and Afghanistan will
likely remain at, or close to, the same levels over the long term. The U.S.
Military has likewise created a new command, the Africa Command (AFRICOM)
in October 2008, which will have to build up its communications
capabilities very quickly. These trends translate to sustained satellite
bandwidth requirements, including commercial assets to support troops for
peacekeeping missions. It should also be noted that bandwidth per soldier
requirements are expanding, such that a net decrease of soldiers on the
ground is offset by the increase of satellite bandwidth to support current
and emerging application suites.
"But apart from Iraq and Afghanistan where U.S. Military bandwidth assets
have been heavily taxed, the Pentagon has stated that the U.S. Military is
prevented from improving its ability to respond to any new crisis such as
potential outbreaks in North Korea, Iran, Lebanon or China," states Jose
del Rosario, Senior Analyst of NSR and author of the report.
Intelligence gathering and reconnaissance missions are also a growing part
of warfighting and peacekeeping missions. "The automation of war is
augmenting and in some cases replacing ground troops. UAVs and other UAS
solutions are bound to increase substantially over time, and the satellite
bandwidth required to run these assets is massive," states del Rosario.
The single-most important market restraining factor for demand of
commercial satellite bandwidth relates to the U.S. Military's deployment of
its internal assets, specifically the WGS, AEHF and MUOS satellites. Some
decline in commercial bandwidth requirements is expected, but NSR expects
this to be temporary as current and new applications will once again
increase satellite bandwidth needs. Revenue growth will continue to be
driven largely by the U.S. Military, but other countries should account for
higher spending levels as well, as the United States has asked, and in some
cases demanded, its allies to increase their participation in international
peacekeeping efforts, both in terms of engagement and in financial support.
About the Report
"Government and Military Demand on Commercial Satellites, 5th Edition" is a
multi-client report now available from NSR. 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 at 617-576-5771.
About NSR
NSR is an international market research and consulting firm specializing in
satellite and wireless technology and applications. 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.