Space manufacturing remains a relatively small sector. According to industry reports, worldwide space manufacturing revenues increased from USD 10.5 billion in 2008 to at least USD 13.5 billion in 2009 (Satellite Industry Association, 2010) (Figure 4.1). This trend continued in 2010, as the main commercial satellite communications operators have been in the process of upgrading their fleet. Almost thirty contracts were signed in 2010 to order geostationary communications satellites. However based on other national and regional industry surveys, revenues generated by the construction of satellites and launchers, and their associated services, are probably larger worldwide. The space industries in India and China for instance provide a large amount of products and services to their growing national space programmes (see Chapter V).

Satellite communications and broadcasting represent the most important space-related commercial market. Revenues of satellite operators are mainly generated by sales of capacity (i.e. leasing of satellite’s transponders: data links and bandwidth) and added value services. The bulk of the satellite communications business comes from television. By early 2010, there were 1.4 billion households with a television around the world, providing roughly five billion people access to TV programmes at home (ITU, 2010). In the OECD, 95% on average of all households have at least one television (OECD, 2009). The number of households around the world with direct-to-home (DTH) satellite dishes rose from 82 million in 2000 to 177 million in 2008 (ITU, 2010). As shown in Figure 5.1 the number of direct broadcast satellite (DBS) subscribers outnumbers the numbers of terrestrial and cable broadcast viewers in 11 countries (particularly Austria, New Zealand, Germany and Ireland)...

Earth observation represents one of the earliest uses of space technologies. It allows the measurements from orbit of a very wide range of geophysical parameters, spanning the whole spectrum of the environment, including the atmosphere, land, oceans, ice and snow. The number of remote sensing satellites had been increasing as countries around the world seek to develop autonomous capabilities. Actors-wise, the United States, Europe, China and India are all important operators of satellite remote sensing fleets (Table 6.2). Out of the 109 operational earth observation missions managed by civilian space agencies, fifty are dedicated to gathering multi-purpose land imagery (CEOS, 2010)...

Although launching satellites appears to be a routine operation to the general public, there are still major risks involved. A branch of the insurance sector specifically covers the commercial space sector’s operations. The main risks covered still tend to be a failure at launch or mechanical troubles for telecommunications satellites (with different types of satellite insurance coverage) (Table 7.1). If losses occur, they tend to happen 83% of the time in the very first phases of the space systems’ lifetime, either because of a malfunction of the rocket during launch or because of a satellite’s breakdown during the first month of operations (Figure 7.2). The space insurance industry generates around USD 750 to USD 800 million a year. After several rocket failures in 1998 and 2001, in recent years space insurers have seen their profits rise and have lowered premium rates. Premium rates paid by satellite operators depend mainly on the reliability over time of the launch vehicles and satellite platforms they use. There are still relatively few satellites insured compared to the mass sent to orbit every year, some 40 per year out of the hundred launched every year (Figure 7.3)...

Not many space products and services are fully commercial, as most are strategic in nature and not freely traded. This section provides a partial overview of existing trade data by examining the exports of one commodity code with significant space components from the International Trade in Commodity Statistics (ITCS) database. Based on available trade data, Table 8.1 and Figure 8.3 show France, the United States, Belgium, Italy and Germany leading the exports of spacecraft (including satellites) and spacecraft launch vehicles. Concerning importers, a diversity of OECD and non-OCDE countries appear, reflecting the emergence of new actors in space activities. France and Luxembourg, homes of large commercial satellites telecommunications operators (Eutelsat and SES Global respectively) show a level of imports corresponding to satellite orders (i.e. commercial communication satellite’s costs represent usually USD 150 to 300 million). Malaysia also shows an import of some USD 189 million in 2009, which could correspond to the launch that year of its first earth observation satellite and associated services.

The space sector has often been considered one of the main frontrunners of technological development. This was evident at the beginning of the space age (1950s) which yielded pioneering space systems. Analysis of patents provides some insight into innovative activities concerning the electrical and mechanical machinery and equipment required for space-based systems (satellites, launchers) as well as the downstream applications, such as telecommunications navigation systems. The number of space-related patents has almost quadrupled in fifteen years when looking at the applications filed under the Patent Co-operation Treaty (PCT) (Figure 9.1). The downturn after 2002 is due to a large degree to time-lag effects described in the “Methodological notes”. The narrow classification B64G: “Cosmonautics; vehicles or equipment thereof” shows a slower increase in the number of patents, meaning that other categories dealing with downstream products and services have gained in importance (Figure 3.6b and 9.2). The countries’ share in space-related patents over the 2000-08 period shows the United States and Europe leading, followed by Korea and Japan (Figure 9.3). Finally, in terms of revealed technological advantage, eight countries demonstrate a level of specialisation in space technologies patenting. The Russian Federation, France, Israel and the United States show a large amount of patenting in space activities, compared to other economic sectors (Figure 9.4).

Ten countries have so far demonstrated independent orbital launch capabilities, and seven countries (i.e. the United States, the Russian Federation, China, Japan, India, Israel and Iran) and the European Space Agency (ESA) have operational launchers. More than 1 100 space launches took place between 1994 and 2010, with the Russian Federation and the United States leading. From a high of 89 in 1994, the rate declined in 2001 to an average of around 60 launches per year. Seventy successful space launches occurred worldwide in 2010 with 119 payloads onboard, although there were four rocket failures (India, Korea and the Russian Federation). The Russian Federation has launched more rockets than any other country every year since 2006 (Figure 10.1) and is planning to launch 50 more satellites in 2011 alone. Countries in Asia led by China (15 launches in 2010, like the United States) are gradually outdistancing Europe in terms of the number of launches and payloads (Figure 10.2)...