24 September 2010


Terrestrial military satcom market to grow from $423m to $684m over 2008–2013

Despite long production cycles and relatively few new satellites, the increasing sophistication of the terrestrial portion of satcom networks will lead to slight growth in the radio semiconductor market, according to the recently published Strategy Analytics Advanced Defense Systems (ADS) data model ‘Terrestrial Military Satcom Platforms — Advanced Electronics Component Forecast’. The report projects a strong initial increase peaking in 2014, followed by a declining trend for the terrestrial portion of the military satcom market through 2020.

The report from market research firm Strategy Analytics projects that the total terrestrial portion of the satcom market will grow from $423m in 2008 to as much as $684m in 2013, before falling off to slightly more than $500m in 2020. The analysis also segments the communications systems by radio electronics and semiconductors, predicting that this sector will be $85m by 2020.

“The ability of forces on the ground to use satellite resources will continue to play a significant role in network-centric battle strategies,” notes Asif Anwar, director, Advanced Defense Systems at Strategy Analytics, who is presenting on this topic on 29 September at the European Microwave Week conference in Paris, France next week. “As terrestrial platforms become more sophisticated in response to evolving battlefield requirements, the radios are keeping pace by incorporating multi-band and higher-frequency capabilities” he adds. “Increasingly challenging radio requirements will create attractive opportunities for suppliers, limited primarily by military budget constraints and the resulting small quantity of satellite platforms.”

The Strategy Analytics data model highlights dynamics in market segmentation. It segments total market values by geography, satellite frequency platform, function and device process. Based on this, Strategy Analytics estimates that the USA is the dominant consumer. The firm also predicts that the market value of the EHF (30–300GHz) satellite frequency platform, driven by newer satellites with higher-bandwidth capabilities, will show very strong growth and surpass the SHF (3–30GHz) satellite frequency segment in 2018.

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