Space Products + Services
Space-related systems are experiencing dynamic commercial growth. Low-cost GPS hardware and new geographic reference applications are embedded in cars, phones, homes, and businesses. Land imaging services for commercial and government use have changed the way people travel and spend their leisure time, and have added enormous detail to our understanding of urban and rural landscapes. The worldwide networks enabled by space are altering entertainment habits and improving the experience of viewing sports, gaming, videoconferencing, and Internet browsing.
Operating in a very different environment from the average consumer, unmanned aerial vehicles (UAVs) also rely on numerous capabilities provided by space. Primarily used as military platforms, these aircraft often depend on satellites for communication and control. Civil authorities and businesses alike have realized the applications and benefits of these systems, and there has been considerable interest in non-military UAVs. In the foreseeable future, UAVs will find new missions providing a layer of capabilities between the Earths surface and the satellites in orbit. Their space-based connections and control systems will allow them to survey disaster areas, provide emergency communications, monitor borders, and transport mail and goods.
The Space Economy
Government space budgets increased considerably from 2008, demonstrating an aggregate growth rate of 16 percent. During 2009, governments spent an estimated $86.17 billion, accounting for 33 percent of the space economy. Excluding stimulus funding, U.S. government spending on space totaled $63.19 billion during 2009, a 9 percent increase over the $57.98 billion budget for 2008. An additional $1.23 billion of stimulus spending targeted space activities, which increased 2009 spending by 11 percent over 2008 budget figures. International government budgets that were counted in both 2008 and 2009 increased by 22 percent to reach $19.97 billion. With the addition of international budgets that are counted for the first time this year, this total becomes $21.75 billion.
Meanwhile, two smaller market segments also experienced revenue growth in 2009. Infrastructure support industries and space commercial transportation services were valued at $1.15 billion and $80 million, respectively. With growth in both the commercial sector and government spending, 2009 financial data highlights the merits of investing in space and its future prospects for generating value.
Government spending led growth as emerging space nations sought to develop their programs, and traditional space powers maintained or increased their overall spending levels. While each nation has its own reasons for participating, space is attracting increasing attention from a larger number of countries. This has resulted in higher spending on military space applications and dual-use programs, as well as offensive and defensive capabilities. Military activity in outer space has recently received increased attention but the heart of the space industry remains satellite telecommunications.
Internet access via satellite, for example, will eventually bring the information age to every corner of the planet, dramatically improving the economies of rural areas, underserved communities, and developing nations. Ever-present broadband Internet access may impact patterns of urbanization, the provision of government services, models of education, and the organization and productivity of businesses. Each specific telecommunications service will likely have a different business model, growth path, and degree of geographic success. The variety of emerging applications highlights the health of the industry, its market stability, and its ability to drive future revenue and economic expansion.
This healthy marketplace is also demonstrated in the Space Foundation Indexes. After falling with the rest of the stock market in the recession of 2008, the Space Foundation Indexes began a strong recovery in 2009 with gains ranging from 14 percent to 56 percent for the year. The Indexes track the breadth and depth of the overall space industry as well as space infrastructure and services segments in U.S. public markets. In another promising sign of resilience in the space markets, two private space companies went public. DigitalGlobe had an initial public offering and Iridium Communications went public by virtue of its purchase by GHL Acquisition. Mergers and acquisitions activity in 2009 also increased over the previous year, registering a high volume of small but important transactions.
Space Infrastructure
The manufacture and launch of satellites during 2009 represents a dynamic level of space activity not seen since the turn of the millennium. During the year, there were 78 orbital launches compared to 69 in 2008, continuing a four-year trend of growth. Several countries demonstrated first-time launch capabilities. Iran successfully launched its first satellite and both South and North Korea made orbital launch attempts. Other countries, such as Brazil, are working to develop new launch platforms. Entrepreneurs are testing human-rated suborbital systems and several space companies are developing new launch vehicles that may dramatically reduce the cost of accessing space.
Despite the passionate responses to NASAs new direction, both in favor and against, most space activity remains focused on satellite communications. With more than 900 active satellites in orbit in 2009 providing a wide range of applications, commercial communications satellite providers have enjoyed success in recent years thanks to increased demand for HDTV, satellite Internet, and military usage of commercial satellite communications. In fact, telecommunications satellites represent more than 45 percent of all satellites. Satellite-based positioning, navigation, and timing systems are another field of intense interest. Several countries, including Russia, China, and Europe, are developing and expanding systems similar to the existing U.S. Global Positioning System. With ambitious government programs underway, strong demand for satellite services, and increased reliance on commercial providers for space station supply activity, the outlook for space manufacturers and launch providers looks brighter than ever.
Economic Impacts, Workforce + Education
The Space Report 2010 also contains new information on military space professionals and their training. The U.S. military is developing a formal space workforce program tying mission requirements to training and certification that crosses all services, including active duty, guard, and reserve personnel, and its civilian workforce. Today, the U.S. military has nearly 14,500 positions for military space professionals, designated by their training, skill, military rank, and service requirements. In the future, other militaries may look to the United States as a benchmark for similar national military space training programs.
Outlook
As the second half century of the space age gets under way, the future of global space activities looks as diverse as it does bright. This generation of space activity will solidify the role of commercial space while expanding the global reach of the industry. More nations than ever realize the strategic and economic value of space, leading to the creation of new international organizations, national space agencies, and investment in an ever-broader set of programs.
Nations will need to decide to place more or less emphasis and reliance on traditional military and civil space programs in favor of leveraging international, regional, interagency, and commercial capabilities. The growing number of spacefaring states working cooperatively and competitively, coupled with the rapid development of capabilities, creates an environment in which innovation can flourish and be rewarded.
The rising tempo of space activity has brought greater awareness that orbital space is getting crowded. Driven in part by concerns of orbital debris, governments and commercial operators are increasingly looking for global solutions through international collaboration. Existing relationships in the fields of disaster management, emergency response, and Earth observation have led to cooperative agreements for space situational awareness. It is advantageous for everyone who relies on space to prevent collisions by improving monitoring and predictive capabilities.
Human space exploration appears likely to occupy a less prominent role in national space programs in the next few years, but this shift is being offset to some extent by greater activity and focus on entrepreneurial opportunities, Earth sciences, and Earth-oriented commercial capabilities. In addition, the importance of military space will continue to grow as more countries develop offensive and defensive space systems. Military space in the United States will increasingly rely on interagency coordination, hosted payloads, and commercial sourcing of communications, imaging, and other services.
Assuming governments change their means of operating, businesses will adapt by creating new models that will change the underlying industry economics. The result, as in the case of military space, will be public-private partnerships and increased reliance on commercial services. Pure commercial space activity, as opposed to government-supported commercial space activity, will continue to broaden and grow. Most space activity remains tied to terrestrial business, but the variety and number of activities will likely grow, as space products and services are integrated deeply into consumer electronics and daily necessities.
The Space Report 2010 Data
The Space Report 2010 is the result of extensive research by the Space Foundation and an array of independent research organizations and individuals with expertise in space, policy, financial markets, science, education, and technology. This combined effort involves identifying, gathering, analyzing, and synthesizing publicly available sources including government and corporate reports, congressional records, and data provided by trade associations and private research firms. The report also draws upon articles in news, business, and industry publications. Illuminating the text of The Space Report 2010 are scores of exhibits tracking industry sector activity, major sources of industry revenue, trends in education and training, employment, government investment in space, and market performance of space industries.
About The Space Foundation
In 1983, a small group of visionary leaders in Colorado Springs saw a need to establish an organization that could, in a non-partisan, objective and fair manner, bring together the various sectors of Americas developing space community and serve as a credible source of information for a broad audience from space professionals to the general public. The Space Foundation was founded in March 21, 1983, as an IRS 501 (c)(3) organization to foster, develop and promote, among the citizens of the United States of America and among other people of the world ... a greater understanding and awareness ... of the practical and theoretical utilization of space ... for the benefit of civilization and the fostering of peaceful and prosperous world. The Space Foundation embraces all facets of space commercial (including telecommunications and other satellite-based services), civil, and national security. In fact, the Foundation is one of few space-related organizations that embraces the totality of this community rather than focusing on a narrowly defined niche. In the 27 years since its founding, the Space Foundation has become one of the worlds premier nonprofit organizations supporting space activities, space professionals and education. The Foundations education programs have touched teachers in all 50 U.S. states and Germany. It conducts the premier event for space professionals anywhere in the world today: the National Space Symposium. More information is available at... http://www.spacefoundation.org/
To order the report... http://www.thespacereport.org