State of the Satellite Industry Report

Prepared by: June 2017

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Formerly Tauri Group Space and Technology Satellite Industry Association: 21 Years as the Voice of the U.S. Satellite Industry

SIA MEMBER COMPANIES

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Formerly Tauri Group Space and Technology Study Overview

• SIA’s 20th annual study of satellite industry data • Performed by Bryce Space and Technology • Reports on 2016 activity derived from unique data sets, including proprietary surveys, in-depth public information, and independent analysis • All data are global, unless otherwise noted • Prior year revenues are not adjusted for inflation

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Formerly Tauri Group Space and Technology 2016 Satellite Industry Indicators Summary Mobile ($3.6) Earth Observation Services ($2.0B) Ground Fixed Equipment* $17.4 $127.7B Satellite Services $260.5B 2016 Global Revenues 0.2% $5.0 13% $104.7 $13.9B Satellite Consumer Non-U.S. 2% Satellite Network Manufacturing Services Consumer (Non-GNSS) $8.9 U.S. Growth 2015 − 2016 $113.4B Non-U.S. Ground $3.3 Equipment* $5.5B 7% Launch Launch $2.2 Industry U.S. Satellite GNSS* 2% Manufacturing Prepared by: *Ground equipment revenues include the entire GNSS segment: stand-alone navigation devices and GNSS chipsets supporting location-based services in mobile devices; traffic information systems; aircraft avionics, maritime, surveying, and rail . 4 Formerly Tauri Group Space and Technology Global Satellite Industry Revenues

Global Satellite Industry Revenues ($ Billions) $300

$250

$200

$150 2X $247 $255 $261

$ Billions $231 $100 $210 $168 $177 $144 $161 $122 $50 Ten-Year Global Industry Growth $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Growth Rate 15% 19% 11% 5% 6% 18%* 10% 7% 3% 2%

Global satellite industry grew 2% in 2016, below worldwide economic growth (3.1%) and slightly above the U.S. growth (1.6%) Prepared by: *Beginning with 2012, ground equipment revenues include the entire GNSS segment: stand-alone navigation devices and GNSS chipsets supporting location-based services in mobile devices; traffic information systems; aircraft avionics, 5 maritime, surveying, and rail. Formerly Tauri Group Space and Technology U.S. Portion of Global Satellite Industry Revenues

$300 Total: Total: Total: $254.8B $260.5B Total: $246.6B $250 Total: $230.9B $209.2B Average yearly Non-U.S. $200 U.S. market share Satellite 146.9 150.2 141.5 129.6 Industry 44% $150 118.1 $ Billions $ of global $100 U.S. industry Satellite $110.3 Industry $50 $91.0 $101.3 $105.0 $107.9

$0 2012 2013 2014 2015 2016 Growth Rate 18% 10% 7% 3% 2%

U.S. Growth 19% 11% 4% 3% 2%

Non-U.S. Growth 17% 10% 9% 4% 2% Prepared by:

Formerly Tauri Group Space and Technology The Satellite Industry in Context

Telecommunications • Television Non-Satellite • Telephone Industry • Broadband • Aviation $78.6B • Maritime • Road and Rail $339.1B Satellite Services Earth Observation Global Space $260.5B • Agriculture Economy $127.7B • Change Detection Satellite • Disaster Mitigation Industry • Meteorology (77% of Space 1% • Resources Economy) Growth Science 2015 − 2016 • Earth Science • Space Science

Ground Equipment National Security $113.4B 2% Satellite Manufacturing Core of the Space Growth Launch Industry Industrial Base 2015 − 2016 Consumer Equipment • Sat TV, radio, and broadband equipment Network • Gateways • NOCs • GNSS stand-alone units & in-vehicle systems • VSATs • SNG equipment • GNSS chipsets (beginning with the 2017 report) Equipment Prepared by: Notes: Network operations centers (NOCs), satellite news gathering (SNG), very small aperture terminal (VSAT) equipment, global navigation satellite systems (GNSS) 7

Formerly Tauri Group Space and Technology The Satellite Network in Context

Operational Satellites by Function (as of December 31, 2016) • Number of satellites increased 47% Non-Profit Communications (1%) over 5 years (from 994 in 2012) Meteorology Space observation (1%) » Satellites launched 2012 — 2016 Scientific increased 53% over previous 5 years

Navigation Commercial » Average 144/year Communications » Due mostly to small/very small Military satellites in LEO (<1200 kg) Surveillance » Average operational lives of larger (mostly communications) satellites 1,459 becoming longer, exceeding 15 years; Total Operational 247 active sats launched before 2002 R&D Satellites » 520 satellites in GEO (mostly communications) • 59 countries with operators of at least one satellite (some in regional

Government consortia) Communications Earth Observation • U.S. entities operate 594 satellites Prepared by: 8

Formerly Tauri Group Space and Technology Top-Level Global Satellite Industry Findings • Satellite industry revenue was $260.5 billion in 2016 • Overall industry growth of 2% worldwide • Two of four satellite industry segments posted meaningful growth Satellite services: the largest segment; revenues remained flat 0.2% Consumer services continue to be a key driver for the overall satellite industry

Satellite manufacturing revenues decreased by 13% 13% Fewer satellites launched in 2016, reflecting replacement cycles approaching an end and a bottleneck in immediate availability of launch services Launch industry revenues grew by 2% 2% Several launches deploying government-manufactured payloads contributed to moderate growth Ground equipment revenues grew by 7% 7% Growth in GNSS and network equipment, consumer equipment remaining flat Prepared by:

Formerly Tauri Group Space and Technology Satellite Industry Segments

Satellite Services • Consumer Services » Satellite Television » Satellite Radio » Satellite Broadband • Fixed Satellite Services » Transponder Agreements » Managed Network Services (including in-flight services) • Mobile Satellite Services • Earth Observation Services

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Formerly Tauri Group Space and Technology Global Satellite Services Revenue

$130 $120 Earth $110 Observation $100

$90 Mobile $80 0.2% $70

Fixed $ Billions $60 $50 2015 − 2016 $40 Consumer Global $30 Growth $20 $10 $0 2012 2013 2014 2015 2016 Growth Rate 5% 5% 4% 4% 0.2%

Total $113.5 $118.6 $122.9 $127.4 $127.7 The U.S. share of Consumer $93.3 $98.1 $100.9 $104.3 $104.7 satellite services Satellite TV (DBS/DTH) $88.4 $92.6 $95.0 $97.8 $97.7 revenue in 2016 Satellite Radio (DARS) $3.4 $3.8 $4.2 $4.6 $5.0 was Satellite Broadband $1.5 $1.7 $1.8 $1.9 $2.0 Fixed $16.4 $16.4 $17.1 $17.9 $17.4 Transponder Agreements (1) $11.8 $11.8 $12.3 $12.4 $11.2 40% Managed Services (2) $4.6 $4.6 $4.8 $5.5 $6.2 Mobile $2.4 $2.6 $3.3 $3.4 $3.6 Prepared by: Earth Observation $1.3 $1.5 $1.6 $1.8 $2.0 Notes: Numbers may not sum exactly due to rounding. (1) Includes capacity for DTH satellite TV and some mobility service platforms. (2) Includes VSAT, mobility, and in-flight connectivity. 11 Formerly Tauri Group Space and Technology U.S. Satellite Services Revenue

$60 Earth Observation $50

Mobile $40 2% $30 Fixed $ Billions $20 2015 − 2016 Consumer U.S. $10 Growth

$0 2012 2013 2014 2015 2016 Growth Rate 6% 3% 4% 5% -2%

Total $47.2 $48.7 $50.9 $53.3 $52.1 The U.S. share of Consumer $42.3 $44.0 $46.0 $48.0 $46.4 global satellite Satellite TV (DBS/DTH) $37.5 $38.6 $40.1 $41.7 $39.7 services revenue Satellite Radio (DARS) $3.4 $3.8 $4.2 $4.6 $5.0 in 2016 was Satellite Broadband $1.4 $1.6 $1.7 $1.7 $1.7 Fixed $3.7 $3.7 $3.8 $4.1 $4.4 Transponder Agreements (1) $0.3 $0.3 $0.3 $0.3 $0.3 40% Managed Services (2) $3.4 $3.4 $3.5 $3.8 $4.1 Mobile $0.4 $0.4 $0.4 $0.5 $0.5 Prepared by: Earth Observation $0.8 $0.6 $0.7 $0.7 $0.8 Notes: Numbers may not sum exactly due to rounding. (1) Includes capacity for DTH satellite TV and some mobility service platforms. (2) Includes VSAT, mobility, and in-flight connectivity. 12 Formerly Tauri Group Space and Technology Satellite Services Findings: Consumer Services Highlights Satellite radio and consumer satellite broadband posted 10% and 3% growth respectively in the consumer services segment, while more mature satellite TV stayed flat

Satellite TV Services Satellite Satellite Radio Broadband ($2.0B) • Satellite TV services (DBS/DTH) stayed flat and Radio ($5.0B) • Satellite radio (DARS) revenues accounted for 77% of all satellite services revenues; grew by 10% in 2016 93% of consumer revenues • Satellite radio subscribers grew 6% • Up to 220 million satellite pay-TV subscribers in 2016, to 31.3 million worldwide (plus at least half as many free-to-air satellite TV households), driven by demand in • Primarily U.S. customer base emerging markets $104.7B • 41% of global revenues attributed to U.S. 2016 Consumer Satellite Broadband Services • U.S. growth driven by premium service revenues Revenue • Revenue grew 3% • Production of UHD content drives increasing (but still • About 3% more subscribers, relatively low) # of channels Satellite TV approaching 1.9 million $97.7B • Potential slowdown of demand growth for satellite • Faster growth anticipated with more capacity: compression technologies continue to capacity available on newly launched improve, more consumers opt for IP-based video satellites over the U.S. services • Most subscribers in the U.S. Non- U.S. subscriber growth rate high, Prepared by: though accelerating from lower base

Formerly Tauri Group Space and Technology Satellite Services Findings

• Mobile satellite services grew 5% » Includes some revenue from Ku and Ka-band FSS capacity provided by MSS operators to provide maritime, airborne, and some other mobility services • Fixed satellite services decreased by 3% » Transponder agreement revenues down 10%, compared to 1% growth in 2015 » Revenues for managed services grew 12%, in line with 15% in 2015; driven primarily by HTS capacity on the supply and in-flight services on the demand side » Substantial share of in-flight and other managed services is provided by the same satellite operators that provide consumer satellite broadband services, their HTS capacity divided between the two types of service • Earth observation services revenues grew 11% » Continued growth by established satellite remote sensing companies, with new entrants reporting revenue as they continue to roll out their services Prepared by: » New entrants continued to raise capital, develop satellites, deploy orbital assets 14

Formerly Tauri Group Space and Technology Case Study: Earth Observation (EO) Services

Operational

• For many years, global EO services were Sensor Description (kg) Planned Size (<1dy) System Sat Mass

offered by small number of operators High revisit High Res (<1m) • New competitors and new partnerships have Airbus D&S  Optical and radar 4 1,000 recently emerged DigitalGlobe   Optical 5 2,800 MDA   Radar 1 2,300 • Investment driven by interest in business DMCii  Optical 6 450

intelligence products from satellite imagery Sats Large ImageSat  Optical 3 350 • Industry maturation UrtheCast   Optical and radar 24 1,400 » New systems continue to be announced Astro Digital   Optical 30 20 » Acquisitions and mergers Axelspace   Optical 50 95 BlackBridge (Planet) Optical 5 150 o Airbus – EADS Astrium (2013)   BlackSky Global Optical 60 50 o SPOT Image  Capella Space Radar 30 TBD o InfoTerra  XpressSAR Radar 4 TBD o SSTL/DMCii  GeoOptics Radio occultation 24 115 o UrtheCast – Elecnor/Deimos (2015)  HawkEye360 RF mapping 21+ TBD o Planet – BlackBridge (2015)  Hera Systems  Optical 48 24

ICEYE   Radar 50 <100

Small Satellites (<200 kg) (<200 Small Satellites PlanetiQ  Radio occultation 12 22 • UrtheCast operates cameras aboard ISS and Planetary Resources   Optical 10 TBD acquired assets from Elecnor Deimos, but is also planning to deploy optical and radar Planet  Optical 100+ 3 Prepared by: satellites • exactEarth/Harris features hosted payloads, Satellogic   Optical 25+ 35 rather than dedicated satellites Spire Global Radio occultation 50 3 • Criteria for inclusion are satellites on orbit, announced funding, signed launch Terra Bella (Planet)  Optical 24 120 Formerly Tauri Group Space and Technology contract/agreement, or NOAA license Satellite Industry Segments

Satellite Manufacturing

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Formerly Tauri Group Space and Technology Satellite Manufacturing Revenues

$18 Average: $15.2B $16

$14 $4.8 $6.0 $6.6 $12 $6.4 $5.0 13% $10

$ Billions $ $8 2015 − 2016 Global $6 $10.9 $10.0 $9.4 Growth $4 $8.2 $8.9 $2

$0 Non-U.S. 2012 2013 2014 2015 2016 United States Total $14.6 $15.7 $15.9 $16.0 $13.9 Growth Rate 23% 8% 1% 1% -13% • Worldwide 2016 revenues totaled $13.9 billion • U.S. share of global revenues was 64%, an increase from 59% in 2015 NOTES: Satellite manufacturing revenues are recorded in the year of satellite launch. Do not include satellites built by governments or Prepared by: universities. Data based on unclassified sources.

U.S. 2015 revenues adjusted from $10 to $9.4 billion to reflect updated survey inputs 17

Formerly Tauri Group Space and Technology Satellite Manufacturing Findings

• 126 satellites launched in 2016 • Communications satellites represented 22% of total » Significant drop from 202 in 2015 revenues, compared to 42% in 2015 » Drop largely due to delayed very small satellites • Military surveillance satellites accounted for 44% of revenues, • 46 CubeSats launched, representing 37% of total; most for compared to 36% in 2015 commercial Earth observation • CubeSats represent less than 1% of total value Meteorology (3%) Meteorology (4%) Navigation Commercial Commercial Communications Navigation Communications

Military Civil/Military Surveillance Communications Civil/Military Communications R&D R&D (1%) Scientific 126 $13.9B Satellites Revenue from Launched Satellites Launched Earth in 2016 in 2016 Observation

Military Surveillance Scientific Earth Observation Number of Spacecraft Launched Value of Spacecraft Launched Prepared by: by Mission Type (2016) Estimated by Mission Type (2016)

Formerly Tauri Group Space and Technology U.S. Satellite Manufacturing Findings

Japan • U.S. satellite manufacturing revenues Russia All Other (0.2%) decreased 5%, with commercial sector 7% China higher and government sector 9% lower • 74% of U.S. revenues were from U.S. government contracts Europe • Excluding CubeSats, U.S. firms built 27% of 126 satellites launched in 2016 and earned 63% Satellites Launched of global satellite manufacturing revenues in 2016 U.S. » Including CubeSats, U.S. firms built about 63% of satellites launched in 2016 and earned 64% of revenues » 45 of the 79 U.S.-built satellites launched in 2016 were CubeSats Estimated Value of Spacecraft Launched by Country/Region of Manufacturer (2016)

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Formerly Tauri Group Space and Technology Satellite Manufacturing Revenue Comparison to 2015

• Decline of $2.1B in satellite manufacturing, compared to 2015, due to fewer satellites launched » One European-manufactured commercial satellite launched, compared to 9 in 2015 ($1B revenue decline) » Less expensive U.S. government satellites ($0.65B revenue decline) » Outside the U.S. and Europe, 14 fewer satellites launched ($1.4B revenue decline) o Russia launched 6 satellites, compared to 16 in 2015 o Unlike in 2015, Japan and South Korea not launching expensive reconnaissance satellites o Smaller overall value of satellites launched by China » Fewer (65, compared to 140 in 2015) very small satellites (estimated revenue decline about $200M) • Decrease in revenue partially offset by a larger number of commercial satellites built in the U.S. and government satellites in Europe

Prepared by: 20 Formerly Tauri Group Space and Technology Future Indicator: Commercial Satellite Manufacturing Orders

China 12% • Orders for 17 commercial GEO satellites U.S. announced in 2016 17 • 10 orders won by U.S. manufacturers 2016 29% GEO Satellite 59% • 59% share of orders won by U.S. firms, down Orders from 65% in 2015 Europe

30 80% U.S. GEO Orders 70% 25 60% 20 Europe GEO 16 50% 9 Orders 15 15 12 40% 12 10 11 30% All Other GEO 10 6 6 20% Orders 5 6 3 5 9 5 6 6 10% Number of Satellites Ordered Satellites of Number 3 3 0 2 0% U.S. Satellite 2010 2011 2012 2013 2014 2015 2016 Orders (%) Prepared by:

Formerly Tauri Group Space and Technology Case Study: Very Small Satellites

• Continued and growing interest in Number of Very Small Satellites (≤600 kg) inexpensive, very small satellites, both Launched by Year (2000 — 2016) CubeSats and customized platforms CubeSats » Earth observation: at least 20 announced All other small satellites systems, CubeSat and customized » Telecommunications: at least 4 new announced LEO systems to use very small satellites, ranging from tens to several thousand satellites per constellation; none launched to date • CubeSats are an established “kit” form of very small satellite, an attractive, low-cost option for commercial purposes » 55 CubeSats launched in 2016, down from 108 launched in 2015, with 33 sent into orbit via ISS » Drop in number due in part to Falcon 9 grounding • Commercial constellations are also using or will use following September pad explosion customized very small satellites, larger than CubeSats – » 45 commercial CubeSats launched in 2016 (all for including systems by Airbus/SSTL, SSL, Spaceflight Earth observation services), down from 61 in Industries, York Space Systems, and others 2015. Majority (32) built and operated by Planet » 3U CubeSats represent majority, but other systems starting to employ 6U, 12U, and even Prepared by: larger combinations

Formerly Tauri Group Space and Technology Satellite Industry Segments

Launch Industry • Launch Services • Launch Vehicles

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Formerly Tauri Group Space and Technology Satellite Launch Industry Revenues

Average: $5.6B $6

$5 2%

$4 $3.8

$3.8 $2.9 $3.3 $3.6 $3 2015 − 2016 Global

$ Billions $ Growth $2

$2.4 $2.4 $1 $2.0 $1.8 $2.2 Non-U.S. $0 2012 2013 2014 2015 2016 United States

Total $5.8 $5.4 $5.9 $5.4 $5.5 Growth Rate 21% -7% 9% -9% 2% • $5.5B global revenues in 2016 from commercially-procured satellite launches • U.S. share of global launch revenues increased from 34% in 2015 to 40% in 2016

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Note: Launch industry revenues are recorded in the year the launch was conducted. 24 Formerly Tauri Group Space and Technology Satellite Launch Industry Findings

• Revenues increased by about 2% globally in 2016, compared with a 9% decrease in 2015 • Worldwide commercially-procured launches in 2016 (64) down slightly from 2015 (65) Beyond GEO • U.S. providers conducted 18 commercially-procured satellite MEO launches; SpaceX grounding delayed several scheduled launches 2 GEO to 2017 6 • Strong performance by providers in Europe and China in 2016 • 11 Arianespace satellite launches, same as in 2015 Total 28 • 20 Chinese satellite launches, compared to 19 in 2015 • Weak performance by Russian providers – just two commercially- 64 procured satellite launches by ILS 28 LEO • Government customers worldwide remained the launch revenue driver, at 70%, about the same as in 2015 (69%) • By country, the U.S. had the largest share of commercially- 2016 Commercially-Procured procured launch revenues (40%), with 32% of global revenues Satellite Launches by Orbit from launching U.S. government satellites

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Formerly Tauri Group Space and Technology Future Indicator: Commercial Satellite Launch Orders

Russia • 14 commercial satellite launch orders placed in 2016, down from 33 in 2015 1 • 4 (29%) satellite launch orders won by U.S. companies, down U.S. 4 2016 significantly from 15 (45%) in 2015 Orders • U.S. market dropped from 45% in 2015 to 29% 14 9 • Typical year for Arianespace, though not as robust as previous years • Inmarsat and ViaSat shift satellites from SpaceX to Arianespace Europe • Note: 11 orders for government payloads not counted here

U.S. Commercial 60 60%

Launch Orders 50 50% Russia Commercial 40 20 40% 15 Launch Orders 30 3 6 30% 9 4 15 Europe 20 14 8 8 20% 18 11 1 Commercial 14 14 4 4 Launch Orders

Number Launch of Orders 10 1 10% 13 11 16 1 6 10 9 0 5 2 4 1 0% All Other 2009 2010 2011 2012 2013 2014 2015 2016 Commercial Launch Prepared by: Orders U.S. Market Share (%) NOTE: A single launch contract may cover the launch of more than one 26 Formerly Tauri Group Space and Technology satellite (each described as an “order”). Case Study: Very Small Launch Vehicles

Very Small Launch Vehicles with Announced Investment

• At least 33 very small (LEO capacity Human to Scale ≤500 kg) launch vehicles under development worldwide • Provide schedule control for small payloads and other operational benefits • Price per kg is relatively high compared to large vehicles Electron LauncherOne Vector H Vector R Vector Space Vector Space Company Rocket Lab Virgin Galactic • Not all are funded; high uncertainty Systems Systems and development risk LEO Capacity 150 kg 400 kg 100 kg 60 kg First Flight 2016 2017 2019 2018

Price $4.9M $10M $3M $1.5M Price/kg $32,667 $25,000 $30,000 $25,000 Other systems, proposed or in early development ,not included in chart: ARCA Space Corp. (Haas 2C), Bagaveev (Bagaveev), bSpace (Volant), Celestia Aerospace (Arrow), CONAE (Tronador II), CubeCab (Cab-1A), Exos (SARGE), Firefly Aerospace* (Alpha), Generation Orbit (GOLauncher-2), Horizon Space (Black Arrow 2), InterOrbital Systems (NEPTUNE), Lin Industrial (Taymyr), Mishaal Aerospace (M-OV), Nammo (North Star), OneSpace (OneSpace), Open Space Orbital (Neutrino), Orbital Access (Orbital 500), PLD Space (Arion Prepared by: 2), Rocketcrafters (Intrepid 1), Scoprius (Demi-Sprite), SpaceLS (Prometheus 1), Tranquility Aerospace (Devon Two), UP Aerospace (Spyder), Zero2Infinity (Bloostar) 27 * Formerly Firefly Space Systems – assets purchased by EOS Launcher, Inc. in 2017 Formerly Tauri Group Space and Technology Satellite Industry Segments

Ground Equipment • Network Equipment » Gateways » Control stations » Very Small Aperture Terminals (VSATs) • Consumer Equipment » Satellite TV dishes » Satellite radio equipment » Satellite broadband dishes » Satellite phones and mobile satellite terminals » Satellite navigation stand-alone hardware

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Formerly Tauri Group Space and Technology Global Satellite Ground Equipment Revenues $120

Network $10.3 Equipment $100 $9.6 $9.3 $8.8 7% Consumer $80 Equipment:

$9.9 Satellite Navigation $60 $84.6 2015 − 2016 (GNSS) $74.6 $78.1 Global

$ Billions $66.8 Growth $40 $52.7 Consumer Equipment: Satellite TV, $20 The U.S. share of Radio, ground equipment Broadband, $15.6 $17.9 $18.3 $18.5 revenue in 2016 and Mobile $12.8 was $0 (Non-GNSS) 2012 2013 2014 2015 2016

Total $75.4 $91.2 $101.8 $106.0 $113.4 42% Growth Rate 4%* 21% 12% 4% 7% Network Equipment — gateways, network operations centers (NOCs), satellite news gathering (SNG) equipment, flyaway antennas, very small aperture terminal (VSAT) equipment Consumer Equipment — non-GNSS: satellite TV, radio, and broadband equipment, mobile satellite terminals. Prepared by: GNSS — beginning with 2012, includes the entire GNSS segment: stand-alone navigation devices and GNSS chipsets supporting location- based services in mobile devices; traffic information systems; aircraft avionics, maritime, surveying, and rail. *The 2012 growth number reflects only the stand-alone device portion of the GNSS equipment revenues 29 Formerly Tauri Group Space and Technology Ground Equipment Findings

• Total satellite ground equipment revenues increased 7% in 2016 • Network equipment revenues increased 7%, tracking the growing demand for managed network services (including but not limited to in-flight connectivity services) • Satellite navigation (or GNSS, for global navigation satellite systems) grew 8% and includes » Stand-alone and in-vehicle units ($31 — $32 billion per year in 2012 — 2016) » Chipsets supporting location-based services in mobile devices; traffic information systems; GNSS avionics in aircraft, maritime, surveying, and rail • Consumer equipment for satellite TV, radio, broadband, and mobile satellite terminals (non-GNSS) revenues grew 1% with satellite TV terminals remaining flat or decreasing in some markets, offset by growth in broadband and some mobile equipment sales

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Formerly Tauri Group Space and Technology 2016 U.S. Employment Estimates (Private Sector Employment Only)

• In September 2016 (latest BLS report for the year), satellite industry employment in the U.S. was 211,185 73,393 Ground 72,259 • Slight decrease from same time Equipment Satellite in 2015 (-1%) 211,185 Services Total Satellite Industry • Employment in satellite services Employment increased by 1% between Sep (3Q 2016) 2015 and Sep 2016 48,229 Launch Industry 17,304 Satellite Manufacturing

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Formerly Tauri Group Space and Technology Source: analysis of data from U.S. Bureau of Labor Statistics (BLS). Summary: Top-Level Global Satellite Industry Findings Satellite industry revenue was Two of four satellite industry segments $260.5 billion in 2016 surveyed posted growth » Growth of 2% worldwide in 2016 » Satellite services, the largest segment, stayed flat. Consumer services continues to be the » Decrease from 3% growth rate in 2015 largest segment of the overall satellite industry

Global Satellite Industry Revenue ($ Billions) » Satellite manufacturing revenues decreased by 13%. Fewer satellites launched in 2016, $300 reflecting replacement cycles approaching an $250 end and a bottleneck in immediate availability of launch services $200

$150 » Launch industry revenues increased 2% in $261 $231 $247 $255 2016. A few launches deploying government-

$ Billions $100 $210 manufactured payloads contributed to the $50 moderate growth

$0 2012 2013 2014 2015 2016 » Ground equipment revenues increased 7% in 2016. Growth seen in GNSS and network Prepared by: equipment; consumer equipment revenues 2% stayed flat 2015 – 2016 Global Growth 32 Formerly Tauri Group Space and Technology

Contact

For more information on the satellite industry, or for previous SSIR reports, please contact SIA:

Satellite Industry Association [email protected] 202-503-1560 www.sia.org

Bryce Space and Technology brycetech.com Prepared by:

Formerly Tauri Group Space and Technology