Prof. W. Peeters
OVERVIEW OF THE
SPACE SECTOR
W. Peeters
Faculty, Space Business and Management
International Space University
7 October 2010 – Vilnius, Lithuania
NordicBaltsat, 2010Prof. W. Peeters 2
Space organization : Overview
• SPACE BUSINESS
– Traditional scenario
– The changing environment
– Commercialisation
• THE SPACE INDUSTRY
• SPACE ECONOMICS & GEOPOLITICS
NordicBaltsat, 2010Prof. W. Peeters 3
Space Business Overview
Traditional Financing Scenario
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The Public Space MarketPublic space expenditure (EUROSPACE, ESA)
Country Space budget
(2009 B$)
Subdivision
U.S. 50.0 35 % NASA
EUROPE 9.0 50 % ESA
JAPAN 3.2 65 % JAXA
ROW ~10.0 3 (?) Rus, 4 (?) China, .8 Ind, .3 Ca,
.3 Brasil, .3 S-Korea …
Total 72 39 civilian
Notes: US : 64.4 if classified activities are added (NRO(10), NGA(3),…)
ROW = Rest of the World
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Space Budgets and PPP
PPP = Purchasing Power Parity;
China x 3.5 = 10 B$, India x 4.8 = 4 B$
Space Budget 2009 : PPP
Distribution (%)
50%
2,80%
11,20%
29,20%
2,20%4,50%
USA Japan Europe + Canada BRIC ROW N11
Space Budget 2009 :
Distribution (%)
67%
3,80%
15,70%
10,30%
1,30% 1,90%
USA Japan Europe + Canada BRIC ROW N11
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European Civil vs. Military Space
-
1.000
2.000
3.000
4.000
5.000
6.000
1991 1994 1997 2000 2003 2006 2009
Civil programmes sales
Military programmes salesIn M€
Source : Eurospace, 2010
NordicBaltsat, 2010Prof. W. Peeters 7
Commercial space sector (1)
Problem to have real figures:
• No dedicated statistics (e.g. space vehicles and guided missiles together in ISIC 3530).
• Some figures not known (Russia, China)
• Delimitation, e.g. Telecommunications (2009)
– space segment 3.6 B$
– Satellite capacity 11 B$
– Ground segment 10-20 B$
– Added value 50-80 B$
NordicBaltsat, 2010Prof. W. Peeters 8
Commercial space sector (2)
Turnover 2009 : 160.9 B$
83.0%
5%
11%
2.00%
Telecom
Launchers
Navigation
Earth obs
(Source: SIA/Futron)
Note : Navigation 18% depending on ground terminals inclusion
NordicBaltsat, 2010Prof. W. Peeters 9
Commercial Space Sector Evolution
(Source SIA/Futron, June 2010)
Note: Ground Segment : mobile terminals, dishes,
control stations, handheld equipment…Note: 2009/2008 : +11%
NordicBaltsat, 2010Prof. W. Peeters 10
Global Space Activity 2009
(Source : Space Foundation, 2010)
Note 2009/2008 : + 8%
NordicBaltsat, 2010Prof. W. Peeters 11
Space Commercialization evolution in Europe (in percentage)
0%
20%
40%
60%
80%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 USA
2009
Public funding Commercial funding
(Source: Eurospace, Space Foundation)
NordicBaltsat, 2010Prof. W. Peeters 12
Space organization
• SPACE BUSINESS
– Traditional scenario
– The changing environment
– Commercialisation
• THE SPACE INDUSTRY
• SPACE ECONOMICS & GEOPOLITICS
NordicBaltsat, 2010Prof. W. Peeters 13
Major Changes in Industry
Approach:
• Mergers: 26 U.S. space integration companies in 1980
4 main left in 1997 ! (Lockheed-Martin, Boeing, Raytheon, Northrop-Grumann)
Verticalization (end-to-end, market contact)
Consolidation ( economy of scale, 600 million $ of Boeing in Sea launch…)
• In Europe : Astrium and Thales
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26 companies 4
1993 1994 1995 1996 1997 19981992 1999 2000 2001
De Havilland
McDonnell
Hughes Space
Ford Aerospace
IBM-Federal Sys.
BoeingRockwell A+D
Douglas
GD-Aircraft
Martin MariettaLockheed
Loral
LTV Missiles
Unisys.
Hughes Aircraft
GrummanNorthrop
LTV Aircraft
Litton IndustriesNewport News
BAe Business Jets
WestinghouseLogicon
RaytheonBeech Aircraft
TI-Defense
Alliancesin US from vertical horizontal
(Source: U. Beck, SSP05)
NordicBaltsat, 2010Prof. W. Peeters 15
Similar Process in W. Europe
ITALY
Selenia Alenia
Sapazio Aeritalia ‘90
Finmeccanica
GERMANY ERNO ‘80 MBB MBB
Daimler Benz
Dornier
TST
GREAT BRITAIN British Aerospace GEC Marconi
FRANCE
Matra Espace
Aerospatiale
Alcatel NV Thomson CSF
Dassault Electronique
1980 1990 2000
‘93 Alenia Aerospazio
No space activities ‘89 ‘92 DASA
‘90 ‘94 Matra Marconi Space
‘98 Alcatel Space ‘83 Alcatel Espace
‘99 EADS (Astrium
and EADS
launchers)
Thales
Alenia
Space
NordicBaltsat, 2010Prof. W. Peeters 16
Present distribution in Europe (2009)
EADS
32%
Thales
27%
Finmeccanica
6%
Safran
5%
RUAG
3%
OHB
3%
Others
24%
(Source: Eurospace, 2010)
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Major Space Infrastructure companies
(2009, in B$)
Rank Company Country Space
turnover
1 (1) Lockheed Martin U.S. 10.9
2 (2) Boeing U.S. 7.1
3 (3) EADS Europe 6.9
4 (4) Northrop U.S. 6.0
5 (5) Raytheon U.S. 4.4
6 (6) Thales/Alenia Europe 2.9
23 (22) Mitsubishi El. Ind. (MEI) Japan 0.8
31 (33) MDA Canada 0.4
(Source: Space News, August 2, 2010)
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2009 Top Ten Fixed Service
Global Satellite Operators
Rank Satellite Operator Country
2009
Revenue
Satellites
in Orbit
Satellites
on Order
1(1) Intelsat Bermuda (US) $2.50 billion 52 8
2(2) SES ( + Sirius) Luxemburg $2.44 billion 44 11
3(3) Eutelsat S.A. France $1.41 billion 26 6
4(4) Telesat (+ Loral) Canada $750 million 12 3
5(5) Sky Perfect (JSAT ) Japan $363 million 13 2
6(9) Singtel/Optus Singapore/Aus $237 million 5 0
7(7) Hispasat Spain $216 million 4 3
8(6) RSC Russia $200 million 11 4
9(8) Star One Brazil $193 million 7 1
10(10) Arabsat Saudi Arabia $189 million 4 3
(Source: Space News, July 5, 2010)Notes : 15 (-) : China DBS, $ 117 million
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Employment in the Space Sector
Employment in European Space Activities
World: > 1,000,000 people(248,000 USA; 300,000 Russia; 260,000 China)
SECTOR EMPLOYM.
(2009)
% ESTIMATE
(1983)
Space Companies
(incl. services)35,000 75 -
Institutions
(ESA/national)5,500 13 -
Universities/
laboratories5,000 12 -
Totals 45,500 100 31,000
Source Eurospace/SIA
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Employment in European Space Industry
(Eurospace, 2010): External Personnel on site
-
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
-
1.000
2.000
3.000
4.000
5.000
6.000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Final sales (current e.c. M€)
Employment (FTE)
NordicBaltsat, 2010Prof. W. Peeters 21
Turnover in the European Space sector(Eurospace)
• Aircraft sector : 190 Keuro
• Machinery: 75 Keuro, Furniture: 50 Keuro
0
20
40
60
80
100
120
140
160
180
200
1999 2001 2003 2005 2007 2009
Turnover
(Keuro/empl.)
-
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
-
1.000
2.000
3.000
4.000
5.000
6.000
19
91
19
93
19
95
19
97
19
99
20
01
20
03
20
05
20
07
20
09
Final sales …
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Space organization
• SPACE BUSINESS
– Traditional scenario
– The changing environment
– Commercialisation
• THE SPACE INDUSTRY
• SPACE ECONOMICS & GEOPOLITICS
NordicBaltsat, 2010Prof. W. Peeters 23
Public Space Expenditure and GDP2007 OECD report
Figure 2.1.1b: Public space bugets as a % of national GDP for available OECD and Non-OECD*
countries, 2005
Sources: Budgets: NASA, CSA, ESTP (Europe), JAXA, Other National sources.
GDP: National Accounts of OECD Countries: Vol 1, May 2007.
0.295%
0.100%
0.097%
0.085%
0.084%
0.069%
0.061%
0.058%
0.050%
0.045%
0.033%
0.032%
0.028%
0.025%
0.023%
0.022%
0.020%
0.019%
0.019%
0.016%
0.015%
0.014%
0.011%
0.010%
0.009%
0.006%
0.004%
0.003%
0.002%
0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35%
US
India*
France
Russian Fed*
G-7 Avg
China*(1)
Italy
Belgium
Germany
Japan
Switzerland
Sweden
Norway
Canada
Netherlands
Finland
Austria
Denmark
Spain
Luxembourg
South Korea
United Kingdom
Portugal
Brazil*
Ireland
Greece
Hungary
Poland
Czech republic
(1) Chinese data based on unoff icial estimates
NordicBaltsat, 2010Prof. W. Peeters 24
10
1785
1135
425
175
120Common Agricultural Policy
Civil governmental R&D budgets
Defense expenditures
Public expenditures on Education
Healthcare expenditures
Public Space Budgets
European Space expenditures per capita vs. other public budgets or
household consumption expenditures
Sources: Eurostat yearbook 2006-07 “Europe in Figures”; European Defence Agency, “Defence Expenditures”, December 2006;
OECD GBAORD data base. Endnote 12
European Public Budgets
per capita – 2005
in €
Spendings / common life
per capita – 2005
in €
27481742
1638
1135
1121
838
774
464
451
361
130
130Education
Gambling
Communications
Health
Alcoholic beverages, tobacco
Clothing and footwear
Furnishings, household equipments
Recreation
Restaurants and hotels
Food & non-alcoholic beverages
Transport
Housing, water, electricity, gas
* GBAORD: ”Government Budget Appropriations or Outlays for R&D”
*
Public space budgets 10Public space budgets 10
Healthcare expenditures
Public expenditures on Education
Public space budgets 10
Defence expenditures
* Civil governmental R&D budgets
Common Agricultural Policy
Public Space Expenditure comparison
NordicBaltsat, 2010Prof. W. Peeters 25
Geopolitical Influences
• On 25 May 1961 (6
weeks after 12.4.1961),
US President John F.
Kennedy:
‘I believe that the aim of
this nation should be
to land a man on the
moon and return him
safely to Earth before
the end of the decade.’
• Space Race era started
• Budgetary priority
NordicBaltsat, 2010Prof. W. Peeters 26
NASA budget as % of US GDP
NASA Budget
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
1957 1967 1977 1987 1997 2007
% o
f Fe
de
ral B
ud
get
0
24
6
810
12
14
1618
20
No
min
al B
ud
get
(Bill
ion
USD
)
% of Federal Budget Nominal
Source: Bathat, MSc10, OMB data
NordicBaltsat, 2010Prof. W. Peeters 27
US Public Space budgetsM
illio
n $
(F
Y2
00
3)
Data Source: Prospace, the American Space Program (2007)
NordicBaltsat, 2010Prof. W. Peeters 28
Spin-Off and Spin-In
Space Non-Space
Spin-Off
Spin-In
NordicBaltsat, 2010Prof. W. Peeters 29
Macroeconomic study results
ESA 1980 ESA 1988 Canada 1989
Period 1964-82 1977-91 1979-93
Return 2.9 3.2 3.5
Technical 25% 32% 40%
Commercial 27% 8% 18%
Organisational 19% 6% 18%
Workfactor 29% 54% 24%
Study results are unfortunately becoming outdated!
NordicBaltsat, 2010Prof. W. Peeters 30
1 % approach examples
Resulting Table (examples)
Item Space Source 1% saving
equivalent
Burner
efficiency
Microgravity
combustion
15 B$ yearly
Semiconductor
material
Material
sciences
30 M$ yearly
Osteoporosis Human
spaceflights
2 B$ yearly
(USA and EU)
Skin cancer
detection
Science
(ROSAT-MPI)
100 M$ yearly
NordicBaltsat, 2010Prof. W. Peeters 31
Spin-in Importance
• 1960s – 1980s
Space technology leading (cutting edge)
New management techniques developed in space sector
Major spin-off effect
• 1990 - ?
Budget cuts
Technology life times longer in space
Less globalisation, hence less technology transfer
Export Control
Growth of spin-in
NordicBaltsat, 2010Prof. W. Peeters 32
Space Economy : Key figures (2009)
• World Space = > 250 B$
• 2/3th commercial, 1/3th Public
• Worldwide = 0.25% of GDP
• In Europe : 12 $/capita
• Space employment worldwide > 1 million people
• Return from Space investment > 3
NordicBaltsat, 2010Prof. W. Peeters 33
References (general)
• Web sites (e.g. www.space.com, www.eurospace.org, www.spacefoundation.org, …)
• Specialized reports (e.g. FUTRON, Frost&Sullivan)
• SIA/Futron, SBC, State of the Satellite Industry Report (June 2010),
• Space Foundation, The Space Report 2010
• EUROSPACE, European Space Directory (Sevig Press, Paris, yearly)
• OECD, Space 2030 (OECD, 2005)
• ISU, The Farthest Shore (Apogee, 2010)
• Peeters, W. Space Marketing (Kluwer, 2000)
NordicBaltsat, 2010Prof. W. Peeters 34
References (spin-off)
• ESA, Down to Earth, ESA BR-280, September 2009
• NASA, Spinoff (yearly publication, book and CD)
• Bach, L., Cohendet, P. and Schenk, E., Technological Transfers from the European Space Programs. Journal of Technology Transfer, 27, 321-338, 2002.
• Hertzfeld, H., Technology Transfer in the Space Sector: An International Perspective, Journal of Technology transfer, 27, 307-309, 2002.
• Aubin, Y. (ed), Export Control Law and Regulations Handbook (Kluwer, 2007)