Commercial satellite revenues in defence surge as armed forces shift to next-generation NGSO constellations.
Global demand for defence satellite communications is forecast to exceed 7.5 Tbps by 2035, driven primarily by the rapid adoption of next-generation non-geostationary orbit (NGSO) constellations. According to the second edition of the Satellite Communications for Defense and Security report by space consultancy firm Novaspace, satellite communications are becoming an indispensable pillar of modern military architectures.
The report projects that revenues for commercial satellite services in the defence sector will surpass $22.6 billion by 2035. NGSO service revenues alone are expected to reach $21.3 billion over the same period, expanding at a compound annual growth rate (CAGR) of 34 per cent. While geostationary orbit (GEO) capacity demand is forecast to triple—highlighting its ongoing strategic role in multi-orbit networks—GEO revenues are expected to fall from $2.3 billion in 2025 to $1.3 billion by 2035.
Geographically, the United States defence satcom market will continue to dominate, accounting for more than 50 per cent of global demand and 48 per cent of total revenues by 2035. China is projected to be the second-largest market, representing approximately 30 per cent of global demand and revenues.
Santiago Perez, Senior Manager at Novaspace, highlighted that the integration of distributed, multi-orbit satcom architectures is significantly improving military resilience against jamming, kinetic attacks, and signal disruptions. He noted that NGSO constellations will be crucial in delivering the low latency and high capacity required for future operations, describing the shift as a fundamental evolution in how military communications, procurement, and strategic planning are structured.
