According to NSR's market research and forecast report, 'Government and Military Satellite Communications, 6th Edition,' users want 'more capacity and coverage' as the gap between demand and transponder supply is growing.

The reports examines demand for all commercial frequencies (C-, Ku-, Ka-, L- and X-band) and for all mobile (aeronautical, UAVs, maritime, and land-mobile) and VSAT platforms. The analysis of government and military demand trends covers eight regions of the world for equipment and services, as well as demand for bulk transponder leasing, fixed VSATs, communications-on-the-move, communications-on-the-pause and narrowband mobile services.

NSR is an international market research and consulting firm specializing in satellite, wireless and media markets. NSR's primary areas of expertise include emerging technology, IP applications, and broadcast services.

NSR officials say their research shows this gap will shift the market towards either proprietary or commercial systems: 'This gap should propel the commercial GMSC market alone from $3.5 billion in 2008 to $9.3 billion at the end of 2018, driven in large part by land-mobile narrowband units and revenues from unmanned aerial vehicles and communications-on-the-pause services.'

The research firm's officials caution that 'revenue does not tell the only story.' The NSR forecast sees growth in some markets and warning flags in others. 'In an economic downturn that readjusted priorities in public spending and tightened the race for dollars, the government and military commercial satellite market has developed a growing following with bright spots related to future demand in key application markets,' says Claude Rousseau, Senior Analyst for NSR and author of the report.

The study found that replacements for cancelled programs such as TSAT will eventually be found; however, 'commercial satellites will still be required to partially fill the gap in demand with capacity and new, innovative and flexible solutions.'

Last month TMC (News - Alert) had the news that the NSR report, 'Global Satellite-Based Earth Observation (EO)' found that the EO industry is in the midst of a significant growth phase slated to generate revenues for many segments of the satellite industry.

'With an expected increase in the total number of players (government and commercial), advancements in technology, both in sensors and image processing, and a greater political will by governments to embrace EO, the future holds much promise for this market,' it said.