Government and military budget reductions will impact some markets more than others, according to NSR Senior Analyst and Study Author Claude Rousseau, who added that the market would see the most effects of these challenges in the short- to mid-term.

   “The market performance in the short-term will be overshadowed by the pullout from Afghanistan, but the bottom will certainly not fall out,” Rousseau said in the report. “The total revenues grew by almost 10 percent in 2011 and despite questions today, the market should reach $9.7 billion from 1 million in-service units, while transponder demand is set to increase substantially due to UAVs and ISR missions.”

   NSR said land-mobile units would drive the growth on the equipment side of the military satcom sector. The UAV market, however, will absorb the largest portion of commercial satellite capacity in the coming decade. “As the United States shifts its military strategy towards Asia, there is an expectation that more satellite units and capacity will move to this region,” the report said.