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Last Updated: Apr 25, 2025 | Study Period: 2024-2030
Military Satellites are an important tool for gathering important tactical information. Out of more than 4,000 artificial satellites orbiting the earth, more than 40% of them are used for Military applications.
Military satellites are used for various purposes like surveillance, remote sensing, Reconnaissance, weather conditions. They are also used to track weapons development, military deployments, missile launches, and assess damage done by weapons.
In recent years, development in camera technology and processor miniaturization have allowed companies to do radar observations using comparatively smaller satellites.
Many nations have been in space for many decades now but no one came close in challenging the dominance of US. But now China and Russia have opened new frontiers in Military space technology to the extent that the US had setup a new division called Space force in 2019
Post-Gulf War in 1990s, military personnel have grown accustomed to satellite communications (SATCOM) applications, from fixed to new mobility applications. As network-centric warfare have gone up bandwidth consumed per 5,000 military members now exceeds more than 350 Mbits/sec in 2020.
War fighters are more than ever reliant on higher data rates for communications on the move where they can stay connected with Audio and video information while navigating the battlefield.
Unmanned Aerial vehicles are also another important application segment where SATCOM usage has been growing. The SATCOM terminal modem and antenna must work together to transmit geographic location, beam quality, satellite handoff, and other important data-sets
US Military is assessing using constellations of LEO satellites for communications, advanced missile defense or an alternative navigation system to GPS. But Military Low Earth Orbit satellite fleets might not be created right away, as one of the militaryâs future constellation plans still calls for a fleet of geosynchronous-based satellites
Also, the US Defense Departmentâs Missile Defense Agency are looking at creating hypersonic and ballistic tracking space sensor that could include a constellation of small LEO satellites probably by 2025.
Feb 2021-BAE Systems received a $247 million contract from the U.S. Space Forceâs Space and Missile Systems Center to design and manufacture an advanced military GPS receiver and next-generation semiconductor.
Jan 2021- L3 Harris to build prototype satellite to track Hypersonic weapons under a contract by MDA worth $121M.
Jan 2021-Lockheed Martin was today awarded $4.9 billion to build three Next Generation Geosynchronous (NGG) Earth orbiting space vehicles (SV).
August 2020-Japan's Mitsubishi Electric has won a major contract worth $103.5M for the Horizon 2 Air Surveillance Radar system acquisition project from Phillipines.
June 2020-British MoD shortlists Airbus Defence & Space, Babcock Integrated Technology, BT and Serco for its multibillion-dollar (~$7.6B) Skynet satellite program.
June 2020- GomSpace, manufacturer of nanosatellites signed a $2.06 Million contract to develop and deliver a nanosatellite to the Norwegian Defence Research Establishment (FFI). The launch is planned for Q3-2021
June 2020â U.S. Space Force Commercial Satellite Communications Office (CSCO) awarded Peraton, a $56 Million contract to provide commercial satellite communications services for the U.S. Central Command
June 2020â Northrop Grumman Corporation won a ~$2.3 Billion contract for Phase 1 of the Next-Generation Overhead Persistent Infrared (Next-Gen OPIR) Polar program from the USSF
May 2020â Kratos Defense & Security Solutions won a $4.9 Million contract to modernize the infrastructure and systems that interconnect the Air Force Satellite Control Network (AFSCN) sites. The contactor will provide the WANIF units to interconnect AFSCN sites.
US remains world`s biggest and leading market in Military Satellite Market.US created a new Space force in Dec 2019 by Trump administration to focus on national security and preserving the satellites and vehicles dedicated to international communications and observation.
The AEHF constellation has been built by Lockheed Martin consisting of six secure military communications satellites is aimed at replacing the aging Milstar constellation. On 26th March 2020, AEHF-6(weighing 13,600 pounds) the final satellite in the AEHF constellation was launched to provide jam-proof communication (also including real-time video) between U.S. top level leadership and deployed military forces.
Among other countries, Iran launched its first ever military satellite (April 2020) in the orbit after multiple failed attempts. Nour, the satellite is currently circling Earth at an altitude of 264 miles (425 kms).
British militaryâs space campaign picks up steam with âSkynetâ upgrade.
Space Development Agency, US plans to launch several demonstration satellites this year, which will be later used to track hypersonic weapons.
International Space Station Tests Boeingâs Anti-COVID Surface Coating
The global Military Satellite Market size is estimated at $XX Billion in 2023, growing at â% CAGR till 2030. In the next 6 years the market for Military satellites could be as big as $27 Billion worldwide with US having more than 45% market share.
With increasing demand in efficacy of technology to provide positioning, navigation and timing (PNT) capabilities and race towards a space force, Global Military Satellite Market is expected to grow in the forecast period.
There are more than 15 players in the Global Military Satellite Market. US based Lockheed Martin and Airbus cumulatively had ~46% market share in 2019 and the remaining 54% was held by numerous other companies.
There are multiple regional leaders in this market owing to secrecy and growing protectionism. For example, France based Airbus is the market leader in Europe whereas Boeing and Lockheed Martin are the leaders in the US market.
U.S. Space Force is still in its early days, but leaders are already considering adding a new mission for Guardians: providing tactical satellite imagery for beyond-line-of-sight targeting.
Viasat is upgrading Skynet satellite communications capabilities to enable the British military to comply with the latest integrated waveform requirement known as IW Phase 2.
L3Harris leaped from tracking weather to tracking missiles, cracking a competitive field.
L3Harris Demos Antenna Technology for U.S. Space Force SatCom.
Thales Alenia Space to Demonstrate In-Orbit Servicing of Satellites by 2026.
Aevum Builds Worldâs First Autonomous Satellite Launch Vehicle.
North America
The North American market, particularly the USA, will be one of the prime markets for (Military Satellite) due to the nature of industrial automation in the region, high consumer spending compared to other regions, and the growth of various industries, mainly AI, along with constant technological advancements. The GDP of the USA is one of the largest in the world, and it is home to various industries such as Pharmaceuticals, Aerospace, and Technology. The average consumer spending in the region was $72K in 2023, and this is set to increase over the forecast period. Industries are focused on industrial automation and increasing efficiency in the region. This will be facilitated by the growth in IoT and AI across the board. Due to tensions in geopolitics, much manufacturing is set to shift towards the USA and Mexico, away from China. This shift will include industries such as semiconductors and automotive.
Europe
The European market, particularly Western Europe, is another prime market for (Military Satellite) due to the strong economic conditions in the region, bolstered by robust systems that support sustained growth. This includes research and development of new technologies, constant innovation, and developments across various industries that promote regional growth. Investments are being made to develop and improve existing infrastructure, enabling various industries to thrive. In Western Europe, the margins for (Military Satellite) are higher than in other parts of the world due to regional supply and demand dynamics. Average consumer spending in the region was lower than in the USA in 2023, but it is expected to increase over the forecast period.
Eastern Europe is anticipated to experience a higher growth rate compared to Western Europe, as significant shifts in manufacturing and development are taking place in countries like Poland and Hungary. However, the Russia-Ukraine war is currently disrupting growth in this region, with the lack of an immediate resolution negatively impacting growth and creating instability in neighboring areas. Despite these challenges, technological hubs are emerging in Eastern Europe, driven by lower labor costs and a strong supply of technological capabilities compared to Western Europe.
There is a significant boom in manufacturing within Europe, especially in the semiconductor industry, which is expected to influence other industries. Major improvements in the development of sectors such as renewable energy, industrial automation, automotive manufacturing, battery manufacturing and recycling, and AI are poised to promote the growth of (Military Satellite) in the region.
Asia
Asia will continue to be the global manufacturing hub for (Military Satellite Market) over the forecast period with China dominating the manufacturing. However, there will be a shift in manufacturing towards other Asian countries such as India and Vietnam. The technological developments will come from China, Japan, South Korea, and India for the region. There is a trend to improve the efficiency as well as the quality of goods and services to keep up with the standards that are present internationally as well as win the fight in terms of pricing in this region. The demand in this region will also be driven by infrastructural developments that will take place over the forecast period to improve the output for various industries in different countries.
There will be higher growth in the Middle East as investments fall into place to improve their standing in various industries away from petroleum. Plans such as Saudi Arabia Vision 2030, Qatar Vision 2030, and Abu Dhabi 2030 will cause developments across multiple industries in the region. There is a focus on improving the manufacturing sector as well as the knowledge-based services to cater to the needs of the region and the rest of the world. Due to the shifting nature of fossil fuels, the region will be ready with multiple other revenue sources by the time comes, though fossil fuels are not going away any time soon.
Africa
Africa is expected to see the largest growth in (Military Satellite Market) over the forecast period, as the region prepares to advance across multiple fronts. This growth aligns with the surge of investments targeting key sectors such as agriculture, mining, financial services, manufacturing, logistics, automotive, and healthcare. These investments are poised to stimulate overall regional growth, creating ripple effects across other industries as consumer spending increases, access to products improves, and product offerings expand. This development is supported by both established companies and startups in the region, with assistance from various charitable organizations. Additionally, the presence of a young workforce will address various existing regional challenges. There has been an improvement in political stability, which has attracted and will continue to attract more foreign investments. Initiatives like the African Continental Free Trade Area (AfCFTA) are set to facilitate the easier movement of goods and services within the region, further enhancing the economic landscape.
RoW
Latin America and the Oceania region will showcase growth over the forecast period in (Military Satellite Market). In Latin America, the focus in the forecast period will be to improve their manufacturing capabilities which is supported by foreign investments in the region. This will be across industries mainly automotive and medical devices. There will also be an increase in mining activities over the forecast period in this region. The area is ripe for industrial automation to enable improvements in manufacturing across different industries and efficiency improvements. This will lead to growth of other industries in the region.
| Margin Comparison (Highest to lowest) | Region | Remarks |
| 1 | Europe | The supply chain demands and the purchasing power in the region enable suppliers to extradite a larger margin from this region than other regions. This is for both locally manufactured as well as imported goods and services in the region. |
| 2 | North America | Due to the high spending power in this region, the margins are higher compared to the rest of the world, but they are lower than Europe as there is higher competition in this region. All the suppliers of goods and services target USA as a main market thereby decreasing their margins compared to Europe |
| 3 | Asia | Lower purchasing power, coupled with higher accessibility of services in this regions doesnât enable suppliers to charge a high margin making it lower than Europe and North America. The quality of goods and services are also affected due to this aspect in the region |
| 4 | Africa and ROW | The margins are the lowest in this region, except for Australia and New Zealand as the countries in this region donât have much spending power and a large portion of the products and services from this area is exported to other parts of the world |
USAâ $210 billion is allocated to federal R&D with main focus on health research, clean energy, semiconductor manufacturing, sustainable textiles, clean energy, and advanced manufacturing. Investments by private players are mainly focused on technological development including 5G infrastructure and AI in the region.
Europeâ EIC is investing â¬1 billion to innovative companies in sectors like AI, biotechnology, and semiconductors. There is also a focus on developing the ecosystem in the continent as well as improving the infrastructure for developing industries such as electric vehicles and sustainable materials. Private players are targeting data centers, AI, battery plants, and high end technological R&D investments.
Asiaâ There are investments to tackle a range of scientific and technological advancements in this region mainly coming in from China, India, South Korea, and Japan. This will include artificial intelligence, 5G, cloud computing, pharmaceutical, local manufacturing, and financial technologies. Many countries are aiming to be digital hubs including Saudi Arabia.
Africaâ Investments in the region are focused on improving the technological capabilities in the region along with socio-economic development and growth. Private participants of investments in this region is venture capital dominated who are targeting the various growth elements of the region as social stability improves. The major industries are fintech, easier lending, and manufacturing.
Latin America â The focus in the region is for fintech, e-commerce, and mobility sectors. There are also investments in improving manufacturing in the region. Local investments is focused on improving the healthcare, and transportation infrastructure in the region. The region is attracting foreign investments to improve their ability to utilize the natural resources present in the region.
Rest of the Worldâ The investments in this region are focused on clean energy, green metals, and sustainable materials. Funds in Australia are focused on solar energy and battery technologies, along with high end futuristic areas such as quantum computing. The main countries of private investment in ROW will be Australia, Canada, and New Zealand.
| Sl no | Topic |
| 1 | Market Segmentation |
| 2 | Scope of the report |
| 3 | Abbreviations |
| 4 | Research Methodology |
| 5 | Executive Summary |
| 6 | Introduction |
| 7 | Insights from Industry stakeholders |
| 8 | Cost breakdown of Product by sub-components and average profit margin |
| 9 | Disruptive innovation in the Industry |
| 10 | Technology trends in the Industry |
| 11 | Consumer trends in the industry |
| 12 | Recent Production Milestones |
| 13 | Component Manufacturing in US, EU and China |
| 14 | COVID-19 impact on overall market |
| 15 | COVID-19 impact on Production of components |
| 16 | COVID-19 impact on Point of sale |
| 17 | Market Segmentation, Dynamics and Forecast by Geography, 2024-2030 |
| 18 | Market Segmentation, Dynamics and Forecast by Product Type, 2024-2030 |
| 19 | Market Segmentation, Dynamics and Forecast by Application, 2024-2030 |
| 20 | Market Segmentation, Dynamics and Forecast by End use, 2024-2030 |
| 21 | Product installation rate by OEM, 2023 |
| 22 | Incline/Decline in Average B-2-B selling price in past 5 years |
| 23 | Competition from substitute products |
| 24 | Gross margin and average profitability of suppliers |
| 25 | New product development in past 12 months |
| 26 | M&A in past 12 months |
| 27 | Growth strategy of leading players |
| 28 | Market share of vendors, 2023 |
| 29 | Company Profiles |
| 30 | Unmet needs and opportunity for new suppliers |
| 31 | Conclusion |
| 32 | Appendix |
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