Global Defense Satcom Commercial Service Revenues Positioned to Skyrocket: Report
NGSO Systems Drive Explosive Growth as Satellite Connectivity Becomes Mission-Critical
The first edition of the Novaspace Satellite Communications for Defense and Security report finds there is a dramatic transformation underway in military satcom markets globally as NGSO services become the backbone of sector growth. NGSO service revenues are positioned to see a 25%+ CAGR through the decade, reaching $8.1 billion by 2034.
“Driven by rising global tensions and defense modernization, surging military satellite communications demand now marks a transformative shift in how defense forces connect, operate, and project power.” Santiago Perez, Novaspace
In 2024, government activity (excluding Russia and China) generated a combined satcom demand of approximately 300 Gbps, split between 250 Gbps in commercial bands and over 50 Gbps in military bands. This demand was supported by both GEO and NGSO systems, with total commercial service revenues exceeding $2 billion, of which GEO services accounted for $1.5 billion. NGSO revenues, meanwhile, have surged from $90 million in 2020, signaling a major shift in market dynamics.
“Driven by rising global tensions and defense modernization, surging military satellite communications demand now marks a transformative shift in how defense forces connect, operate, and project power,” says Santiago Perez, Senior Manager at Novaspace. “Satellite connectivity is no longer a support function, it’s becoming a strategic enabler of modern defense operations.”
Looking ahead, Novaspace forecasts a 26% CAGR in defense satcom demand. Service revenues are projected to grow significantly, with commercial revenues surpassing $8.6 billion by 2034 (15% CAGR). NGSO service revenues alone are expected to reach $8.1 billion, growing at 25%+ CAGR, while GEO revenues are forecast to decline to $515 million. GEO demand, however, will remain relatively stable in volume, supporting diverse operations outside the US and Europe, often backed by national operators.
Overall, the United States will continue to dominate the defense satcom market, accounting for over 90% of demand and 93% of revenues by 2034. Industry stakeholder must plan towards this growth however global opportunity is growing. Satellite constellations are fast becoming mission-critical infrastructure for defense forces, transforming how operations are planned, executed, and connected. As demand accelerates and NGSO systems take center stage, industry players have a clear opportunity to rethink their strategies, aligning with new defense priorities, tapping into high-growth segments, and securing a competitive edge in a rapidly evolving communications landscape.