State of the Satellite Industry Report

Prepared by: October 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 150.2 Satellite 141.5 146.9 129.6 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 • Telephone Non-Satellite • Broadband Industry • Aviation $84B • Maritime $344.5B Satellite • Road and Rail Services Earth Observation Global Space $260.5B • Agriculture Economy $127.7B • Change Detection Satellite • Disaster Mitigation Industry 1% • Meteorology (77% of Space • 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 2% Navigation Commercial » Average 144/year 5% Communications » Due mostly to small/very small Military 7% satellites in LEO (<1200 kg) Surveillance » Average operational lives of larger 6% 35% (mostly communications) satellites 1,459 becoming longer, exceeding 15 years; Total Operational 247 active sats launched before 2002 R&D 12% Satellites » 520 satellites in GEO (mostly communications) • 59 countries with operators of at least 14% one satellite (some in regional 19% consortia) Government Communications Earth Observation • U.S. entities operate 594 satellites Prepared by:

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

offered by small number of operators Mass Sat High revisit High Res (<1m) High Res • 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 6450

intelligence products from satellite imagery Large Sats ImageSat  Optical 3350 • Industry maturation Jilin  Optical 60+ 95-420 » New systems continue to be announced UrtheCast  Optical and radar 24 1,400 » Acquisitions and mergers Astro Digital   Optical 30 20 o Airbus – EADS Astrium (2013) Axelspace   Optical 50 95 o SPOT Image BlackBridge (Planet)   Optical 5 150 o InfoTerra BlackSky Global  Optical 60 50 o SSTL/DMCii Capella Space  Radar 30 TBD o UrtheCast – Elecnor/Deimos (2015) XpressSAR  Radar 4TBD o Planet – BlackBridge (2015) GeoOptics  Radio occultation 24 115 o Planet – Terra Bella (2017) Small Satellites (<200 kg) HawkEye360  RF mapping 21+ TBD o MDA – DigitalGlobe (2017) Hera Systems  Optical 48 24 • Operational includes initial deployment through ICEYE Radar 50 <100 full capacity   • UrtheCast operates cameras aboard ISS and PlanetiQ Radio occultation 12 22 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 • Criteria for inclusion are satellites on orbit, Spire Global Radio occultation 50 3 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 $12 $6.6 $6.4 $5.0 13% $10

$8 $ Billions 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

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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 66 20% Orders 5 6 3 5 9 5 6 6 10% Number of Satellites Ordered Number of 33 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 180 Launched by Year (2000 — 2016) 160 CubeSats and customized platforms CubeSats » Earth observation: at least 20 announced 140 All other small satellites

systems, CubeSat and customized 120 » Telecommunications: at least 4 new announced 100 LEO systems to use very small satellites, ranging from tens to several thousand satellites per 80

constellation; none launched to date 60

• CubeSats are an established “kit” form of 40

very small satellite, an attractive, low-cost 20

option for commercial purposes 0 » 55 CubeSats launched in 2016, down from 108 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 launched in 2015, with 33 sent into orbit via ISS • Commercial constellations are also using or will use » Drop in number due in part to Falcon 9 grounding 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% $3.8 $4 $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 4 10 14 1 4 10% Launch Orders Number of Launch Orders Number of 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 Orbit • Not all are funded; high uncertainty Systems Systems and development risk LEO Capacity 150 kg 400 kg 100 kg 60 kg First Orbital Launch 2017 2018 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 2015 − 2016 Navigation $60 $78.1 $84.6 (GNSS) $74.6 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 (Non-GNSS) $0 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 2016, satellite industry employment in the U.S. was 211,457 • Slight decrease from same time 73,746 Ground 72,145 in 2015 (-1%) Equipment Satellite • Employment decreased slightly 211,457 Services Total Satellite Industry from 2015 for satellite Employment manufacturing and ground (2016) equipment 48,130 Launch Industry 17,436 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 Launch industry revenues increased 2% in $150 » $247 $255 $261 2016. A few launches deploying government- $210 $231 $ Billions $100 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