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TMCNet:  Frost & Sullivan: Global Space Launch Market to Increasingly Rely on Commercial Companies for its Vehicles and Services

[February 07, 2013]

Frost & Sullivan: Global Space Launch Market to Increasingly Rely on Commercial Companies for its Vehicles and Services

Feb 07, 2013 (M2 PRESSWIRE via COMTEX) -- As government spending decreases worldwide, space launch expenditures within established national programs will steadily decrease with the implementation of cost-cutting measures. Instead, governments will become more reliant on commercial companies to execute space launches. While global space launch expenditures will spike in 2013 and 2014, these will gradually drop as competition between commercial companies for space launch contracts heats up. The global commercial space launch market will transition from the oligopoly of United Launch Alliance (ULA), Arianespace, and International Launch Services (ILS) to a more competitive market with several, smaller companies that manufacture cost-effective launchers.

Frost & Sullivan's Aerospace & Defense (www.frost.defense.com ) practice finds that global spending for space launch activities totaled $6.70 billion in 2011. Space launch spending is forecast to spike to over $9 billion in 2013 and then steadily decrease to $8.36 billion by 2020.

With the proliferation of cellular devices, networks, and direct-to-home (DTH) services, the need for additional bandwidth is the main driver for the space launch market. This is because the large communications satellites required to distribute this bandwidth are the most expensive to build and launch. However, since launch vehicles are so cost prohibitive, governments will be forced to subsidize the market to some degree.

"Due to the extreme costs of space launches, government budgets will always be heavily involved in driving the market," said Frost & Sullivan Senior Industry Analyst Michael Blades. "However, forcing competition should drive costs down." Competing companies could win government business in a couple of ways. First, due to the market's cost barrier, any company looking to enter the market would likely need to partner with an established market competitor. Further, any company that can produce a reliable, reusable launch vehicle (RLV) will gain a distinct advantage in per launch cost. However, while more than one company is currently pursuing this capability, there is market-wide speculation that the technology to complete such a project is several decades away.

"There is considerable debate on whether RLVs for placing payloads into orbit can be designed to not require significant, costly refurbishment upon return from space otherwise the benefit of reusability will be negligible," said Blades.

This fact highlights a submarket the small payload launch that could see significant interest as commercial competition increases. The small payload launch market will be coming into focus as several companies vie to place smaller satellites into orbit using fixed-wing aircraft as a base for launching payload carrying rockets.

If you are interested in more information on this research, please send an email to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska@frost.com , with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Click here to view the video on Frost & Sullivans Analysis of the Global Space Launch Market and gain access to the online community- http://bit.ly/Wsd290 . Analysis of the Global Space Launch Market (NC0F-22) is part of the Aerospace & Defense Growth Partnership Services program, which provides global Mega Trends, information on emerging markets and the latest technology innovations, market, economic, customer, competitive, and best practices research. This CEO 360 degree perspective will enable your company to effectively plan your strategies for growth. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our Growth Partnership supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

*The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.

*The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies Contact Us: Start the discussion Join Us: Join our community Subscribe: Newsletter on "the next big thing" Register: Gain access to visionary innovation Contact: Joanna Lewandowska Corporate Communications Europe P: +48 22 481 62 20 E: joanna.lewandowska@frost.com http://www.frost.com Join us on LinkedIn at Frost & Sullivan's Aerospace, Defence & Security Forum ((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.

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