State of the
Satellite Industry
Report
Prepared by:
Prepared by:
May 2015
Satellite Industry Association:
20 Years as the Voice of the U.S. Satellite Industry
SIA MEMBER COMPANIES
Prepared by:
2
Study Overview
• SIA’s 18th annual study of satellite industry data
• Performed by The Tauri Group
• Reports on 2014 activity derived from unique data
sets, including proprietary surveys, in-depth public
information, and independent analysis
• All data are global, unless otherwise noted
• Prior year revenues are not adjusted for inflation
Prepared by:
3
2014 Satellite Industry Indicators
Summary
Mobile ($3.3B)
Earth Observation Services ($1.6B)
Fixed
$17.1
Ground
Equipment
$58.3
$122.9B
Satellite Services
4%
$203.0B
$5.9
$100.9
2014 Global Revenues
Consumer
$5.9
Launch
Industry
$15.9
Satellite
Manufacturing
4%
Growth
2013 − 2014
Satellite
Services
$122.9
Non-U.S.
$15.9B
Satellite
Manufacturing
Network
$10.0
$9.3
$58.3B
$3.5
5%
$5.9B
Launch
$31.1
Prepared by:
Consumer
(Non-GNSS)
U.S.
Non-U.S.
Ground Equipment
$17.9
1%
Consumer
(GNSS)
$2.4
9%
4
U.S.
Global Satellite Industry Revenues
Global Satellite Industry Revenues ($ Billions)
$250
$ Billions
$200
$150
2.3X
$100
$50
$83
$106
$123
$144
$161
$168
$177
$189
$195
$203
Ten-Year
Global Industry
Growth
$0
Growth Rate
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
-15%
28%
16%
17%
11%
5%
6%
7%
3%
4%
Global satellite industry grew 4% in 2014, slightly above worldwide
economic growth (2.6%) and U.S. growth (2.4%)
Prepared by:
5
U.S. Portion
of Global Satellite Industry Revenues
$250
$200
Total:
$160.8B
Average yearly
U.S. market share
of global
industry
$150
$ Billions
43%
Total:
$168.0B
Total:
$177.4B
$100
$50
$88.3
$94.3
$101.2
Total:
$188.8B
$106.8
Total:
$195.2B
$109.2
Total:
$203.0B
$115.8
$72.4
$73.8
$76.2
$81.9
$85.9
$87.2
2009
2010
2011
2012
2013
2014
Growth Rate
11%
4%
6%
6%
3%
4%
U.S. Growth
12%
2%
3%
7%
5%
2%
Non-U.S. Growth
11%
7%
7%
6%
2%
6%
Non-U.S.
Satellite
Industry
U.S.
Satellite
Industry
$0
Prepared by:
6
The Satellite Industry in Context
Telecommunications
Non-Satellite
Industry
$119.7B
$322.7B
Global Space
Industry
Satellite Services
$122.9B
Earth Observation
Consumer Equipment
Satellite
Industry
(63% of Space
Industry)
• Earth Science
• Space Science
National Security
$15.9B
Satellite Manufacturing
Launch Industry
• Sat TV, radio, and broadband equipment
• GNSS stand-alone units & in-vehicle systems
Prepared by:
$203B
Science
Growth
2013 − 2014
$58.3B
Agriculture
Change Detection
Disaster Mitigation
Meteorology
Resources
•
•
•
•
•
1%
Ground Equipment
Television
Telephone
Broadband
Aviation
Maritime
Road and Rail
•
•
•
•
•
•
Network
Equipment
4%
Core of the Space
Industrial Base
• Gateways
• VSATs
Growth
2013 − 2014
• NOCs
• SNG equipment
Notes: Network operations centers (NOCs), satellite news gathering (SNG), very small aperture terminal
(VSAT) equipment, global navigation satellite systems (GNSS)
7
The Satellite Network in Context
Operational Satellites by Function
(as of December 31, 2014)
Meteorology
Scientific
Military Surveillance
8%
Navigation
R&D
5%
8%
1,261
14%
Prepared by:
38%
» >50% are communications
satellites
» 38% are commercial
communications satellites
• 57 countries operate at
least one satellite (some as
part of regional consortia)
Total Operational
Satellites
11%
Earth Observation
Services
Commercial
Communications
2%
• 1,261 operating satellites as
of year-end 2014
14%
Government
Communications
Source: The Tauri Group. Note: “Earth Observation Services” is new label for what was formerly referred to as
“Remote Sensing” (this is a definitional change only)
8
Global Satellite Services Revenue
$140
Earth
Observation
$120
$ Billions
$100
Mobile
Fixed
4%
$80
$60
$40
Consumer
2013 − 2014
Global
Growth
$20
$0
Growth Rate
Total
Consumer
Satellite TV (DBS/DTH)
Satellite Radio (DARS)
Satellite Broadband (3)
Fixed
Transponder Agreements (1)
Managed Services (2)
Mobile
Voice
Data
Earth Observation
Prepared by:
2009
2010
2011
2012
2013
2014
10%
7%
9%
5%
5%
4%
$92.8
$99.2
$107.8
$113.5
$118.6
$122.9
$75.3
$80.9
$88.6
$93.3
$98.1
$100.9
$71.8
$2.5
$1.0
$76.9
$2.8
$1.2
$84.4
$3.0
$1.2
$88.4
$3.4
$1.5
$92.6
$3.8
$1.7
$95.0
$4.2
$1.8
$14.4
$15.0
$15.7
$16.4
$16.4
$17.1
$11.0
$3.4
$11.1
$3.9
$11.4
$4.3
$11.8
$4.6
$11.8
$4.6
$12.3
$4.8
$0.7
$1.5
$0.7
$1.6
$0.7
$1.7
$0.7
$1.8
$0.8
$1.8
$0.9
$2.3
$1.0
$1.1
$1.3
$1.5
$1.6
$2.2
$1.0
$2.3
$2.4
$2.4
$2.6
$3.3
Notes: Numbers may not sum exactly due to rounding. (1) Includes capacity for DTH satellite
TV platforms. (2) Includes VSAT networks. (3) Improved 2014 data results in understatement
of broadband growth rate from 2013.
The U.S. share of
satellite services
revenue in 2014
was
41%
9
Satellite Services Findings
• Fixed satellite services grew by 4%
» Revenues for transponder agreements grew 4% compared to no growth in 2013
» Revenues for managed services grew 4% compared to no growth in 2013
• Mobile satellite services grew 25%
» Mobile satellite voice revenues grew 19%, compared to 11% in 2013
» Mobile satellite data revenues grew 27%, compared to 5% in 2013
o Data services for aviation major contributor to mobile satellite data growth
• Earth observation services revenues grew 9%
» Continued growth by established satellite remote sensing companies, with
government sales driving demand
» New entrants continued to raise capital, develop satellites, and deploy initial
constellations
Prepared by:
10
Airbus D&S
BlackBridge
Dauria/Elcnor
DigitalGlobe
• New competitors have recently emerged
DMCii
» Typically founded and financed by IT/analytics/tech sector
ImageSat
» Objective to provide real-time or near-real time imagery using
the Internet
MDA
» Smaller satellites, with lower costs of manufacture, launch, and
Planet Labs
operation
Skybox
» Customer base is developing
Spire
» Sophisticated data analytics on the ground
Aquila Space
GeoOptics
• Commercial satellite meteorology on the horizon
HySpecIQ
» Three companies seeking to provide weather data using LEO
satellite-based radio occultation (measuring response of satellite
NorStar
signals traveling through atmosphere)
OmniEarth
» Two companies seeking to provide weather data using imagery
PlanetiQ
Tempus Global
Prepared by:
»
»






Meteorological Focus
Video
Radio Occultation




 


Small Sat (<200kg)
   



   



 

  
   




  
  

GEO 
Radar
Planned
Hyperspectral
Operational
Near Infrared/Infrared
Typically founded and financed by space industry
Objective to provide high resolution imagery
Medium to large satellites with advanced, custom-designed
payloads
Governments as primary customers
Increasing satellite sophistication: on-board data processing and
optical communications for downlink
Multispectral
»
»
»
Panchromatic (B&W)
For many years, global Earth observation services
were offered by small number of operators
High revisit time (<1dy)
•
High Resolution (<1m)
Case Study:
Earth Observation Services

 





 



 

Notes: Multispectral capability provides spectrum for an entire image. Hyperspectral capability adds an additional
layer of information by providing spectrum data for each pixel in an image. List of operators is not comprehensive.
 

 

11
Satellite Industry Segments
Satellite Manufacturing
Prepared by:
12
Satellite Manufacturing Findings
•
•
•
208 satellites launched in 2014, almost double the 107
launched in 2013
130 CubeSats launched represented 63% of total
Most CubeSats were used for Earth observation
•
•
•
10%
Scientific (1%)
5%
208
Satellites
Launched
in 2014
Earth
Observation
Services
Meteorology (2%)
Meteorology (2%)
Navigation
Military Surveillance
Commercial
Communications
Navigation
16%
15%
9%
6%
Civil/Military
Communications
51%
Commercial
Communications
25%
208
Satellites
Launched
in 2014
R&D
38%
8%
Civil/Military
Communications
R&D (1%)
9%
Earth Observation Services
Military Surveillance
Scientific (2%)
Number of Spacecraft Launched
by Mission Type (2014)
Prepared by:
Communications satellites represented 33% of total revenues
generated
Military surveillance satellites accounted for 38% of total
revenues generated in 2014, compared to 30% in 2013
CubeSats represented less than 1% of total value
Value of Spacecraft Launched
by Mission Type (2014)
Note: Does not include satellites built by governments or
universities. Data based on unclassified sources.
13
U.S. Satellite Manufacturing Findings
• U.S. satellite manufacturing revenues
decreased 9%, with revenues from both
government and commercial sectors
proportionally lower
• 75% of U.S. satellite manufacturing
revenues were from U.S. government
contracts
• Discounting CubeSats, U.S. firms built 29%
of the satellites launched in 2014 and
earned 62% of the revenues
» Including CubeSats, U.S. firms built about 62% of
the satellites launched in 2014 and earned 63% of
global satellite manufacturing revenues
» 99 of the 130 U.S.-built satellites launched in 2014
were CubeSats
Prepared by:
All Other (4%)
Japan
Russia
China
5%
5%
4%
208
20%
Europe
Satellites
Launched
in 2014
62%
U.S.
Value of Spacecraft Launched by Country/Region
of Manufacturer (2014)
Note: Does not include satellites built by governments or
universities. Data based on unclassified sources.
14
Case Study:
Very Small Satellites
•
•
Continued and growing interest in inexpensive very
small satellites
CubeSats are an established “kit” form of very small
satellite in use for academic, government, and,
increasingly, commercial purposes
»
»
»
»
•
130 CubeSats were launched in 2014, up from 91 in 2013,
with 84 sent into orbit via ISS (28 CubeSats lost in Antares
failure in October)
101 commercial CubeSats launched in 2014 for Earth
observation services and communications, up from 8 in 2013.
The vast majority (93) are built and operated by Planet Labs
Total expenditure to build all CubeSats since 2005 estimated
at less than $100M
Growing concern regarding collisions with CubeSats – NASA
first major operator to say it has moved satellites to avoid
CubeSats
Commercial constellations using customized very
small satellites (under 200 kg) are in development
Skybox: High resolution, multispectral sensors, up to 24 sats
planned, 2 launched to date
» OneWeb: Telecommunications, function more as nodes
compared to traditional comsats, 100s of satellites planned,
zero launched to date
Prepared by:
»
Number of CubeSats Launched by Year (2005-2014)
140
120
100
80
60
28 lost in launch failure
40
20
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
What is a CubeSat?
• A CubeSat is a cube-shaped satellite bus measuring 10cm on a side, with a
mass of 1-2 kilograms
• Can be stacked together (2U, 3U, 6U) depending on mission
• Costs
» Low Cost: Basic 1U CubeSat bus kits can be purchased for $10,000; with
payload development it will cost roughly $100,000 per unit
» Moderate Cost: Boeing-built CubeSat platforms for NRO are expected to
cost no more than $250,000
» Higher Cost: NASA expects that CubeSats used for planetary science
missions may cost $3-$10 million
15
Satellite Industry Segments
Launch Industry
• Launch Services
• Launch Vehicles
Prepared by:
16
Satellite Launch Industry Revenues
$7
$6
9%
Average: $5.2B
$ Billions
$5
$4
$2.7
$3
$3.2
$3.5
$3.8
$3.0
$2.0
$2.4
$2.4
2013
2014
2013 − 2014
Global
Growth
$3.2
$2
$2.0
$1
$1.2
$1.6
$0
Total
Growth Rate
•
•
Prepared by:
2009
2010
2011
2012
$4.5
17%
$4.4
-2%
$4.8
9%
$5.8
21%
$5.4
-7%
Non-U.S.
United States
$5.9
9%
$5.9B global revenues in 2014 from commercially-procured satellite launches
U.S. share of global launch revenues decreased from 45% in 2013 to 41% in 2014
Note: Launch industry revenues are recorded in the year
the launch was conducted.
17
Satellite Launch Industry Findings
• The number of commercially-procured launches conducted
worldwide in 2014 (73) was up from 2013 (62)
• Revenues increased by about 9% globally in 2014,
compared with a 7% decrease in 2013. The higher revenues
stemmed from more European and U.S. launches of
commercial satellites, including:
Beyond
GEO
MEO
10
» 10 Arianespace launches in 2014 versus 6 in 2013
» 5 launches by U.S. providers Lockheed Martin and SpaceX, versus 2
in 2013
» 4 launches by MHI Launch Services (Japan), versus 1 in 2013
• Government customers worldwide remained the launch
revenue driver, at 72% of commercially-procured satellite
launch revenues, slightly higher than in 2013 (70%)
• By country, the U.S. had the largest share of commerciallyprocured launch revenues (41%), with 34% of global
revenues coming from launching U.S. government satellites
Prepared by:
1
GEO
24
Total
73
LEO
38
2014 Commercially-Procured
Satellite Launches by Orbit
18
Future Indicator: Commercial
Satellite Launch Orders
Russia: 1 (5%)
U.S.
10
(45%)
2014
Orders
22
11
(50%)
Number of Launches Ordered
Europe
• Orders to launch 22 satellites were placed in 2014,
down from 32 in 2013
• 11 (50%) satellite launch orders were won by U.S.
companies, up 83% from 2013
• Russian launch providers experienced a dramatic
drop in orders due to reliability issues and Ukraine
conflict
U.S. Commercial
60
60%
50
50%
40
31
15
30
20
5
13
10
0
Prepared by:
40%
8
2008
20
9
14
14
13
2009
8
14
30%
6
3
8
4
4
11
18
6
5
2
4
2010
2011
2012
2013
11
1
10
2014
NOTE: A single launch contract may cover the launch of more than one
satellite (each described as an “order”).
20%
10%
0%
Launch Orders
Russia
Commercial
Launch Orders
Europe
Commercial
Launch Orders
All Other
Commercial Launch
Orders
U.S. Market Share (%)
19
Contact
For more information on the satellite industry,
or for previous SSIR reports, please contact SIA:
Satellite Industry Association
info@sia.org
202-503-1560
www.sia.org
Prepared by:
The Tauri Group
space.taurigroup.com