(Source: International Space Business Council; issued Feb. 4, 2004)

WASHINGTON --- The global space industry continued to grow in 2003, fueled by a significant increase in U.S. military contracts and continued growth in its commercial markets. According to the ‘2004 State of the Space Industry,’ a recently released publication of the International Space Business Council, the industry generated $96.9 billion in revenues in 2003 and is expected to reach $104.6 billion in 2004.

Among its conclusions are that a rebound in commercial orders for satellites and launch vehicles, combined with an increasing U.S. Department of Defense budget for space systems, and a rise in consumer satellite services are driving the industry toward greater growth.

According to Scott Sacknoff, author of the report, “As we begin 2004, there is a sense of optimism when it comes to the space and satellite marketplace. We see that all of its core markets are on the upswing. Government funding for space is on the rise, commercial orders for satellites and launch vehicles have rebounded, and the uptake of consumer services for satellite TV, radio, and broadband are all increasing. Most importantly for the future, we see a number of new ventures, entrepreneurs and small businesses entering the marketplace.”

The report cites that for the industry, 2003 was a mixed year which saw China’s first manned launch, new rovers on the moon, the failure of the Space Shuttle, and the marketplace for commercial satellites and launchers trying to recover from a recent bottom.

The report also highlights that during the past year the market for high-resolution satellite imagery stabilized with the receipt of several high-profile U.S. government contracts for data; the GPS market will see continued growth as Europe’s Galileo navigation system later in the decade will entice the acquisition of dual-system equipment; and the validation of the market for digital satellite radio.

From an infrastructure point-of-view, the key has been an increase in the U.S. military space budget from $15 billion to more than $20 billion. It is estimated to grow to $26-28 billion by 2009 as the military replaces most of its existing space assets.

Financially, during 2003 nine companies saw stock market gains of 100% or better. In addition, there were 40 mergers and acquisitions valued at more than $18 billion and 25 debt and bank transactions that totaled $18 billion.

Published since 1996, the ‘State of the Space Industry’ has been identified as a key source for understanding the business and financial issues and trends facing space and satellite manufactures, suppliers, and service providers.