Global government space budgets continues multiyear rebound

Global government space budgets continues multiyear rebound

According to Euroconsult’s Government Space Programs 2019 report,

global government space budgets

totaled $70.9 billion in 2018, posting a five-year compound annual growth rate of 5.75%.

The increase extends the last few years of recovery that global space budgets have experienced since the 2015 low of $62.5 billion, the lowest figure since 2007.

This historic low

was caused principally by major downcycling in U.S. defense spending and significant Russian budget contractions (Russia saw its total budget shrink by nearly 60% in U.S. dollars; the loss was less severe in rubles, at only -22%).

Of 2018’s $70.9 billion government space investments, 63% were spent on civil programs, as military budgets tend to fluctuate on lengthier budget cycles.

Civil programs

are driving the world’s space spending growth, totaling $44.5 billion in 2018, a 4.3% increase over 2017.

The U.S. civil budget, growing at 4% five-year compound annual growth rate (5Y CAGR), propelled by the expansion of its space science, technology, and human spaceflight programs, is a main force behind the global growth.

Civil expenditures of Asia and the Middle East and Africa (ME/A) regions, with 6.5% and 5.6% 5Y CAGRs, respectively, are also contributing factors behind world growth.

In 2018, 24 government civil and defense agencies

launched 138 satellites over 50 kilograms, an 84% increase from 2017’s 75 satellites. The most prolific countries are China (58 satellites), the U.S. (22) and Russia (17).

Of 2018’s 79 civil satellites, 42% are for Earth observation,

followed by satellite communications at 15%; the other 59 spacecraft were defense satellites. Governments are set to launch 1,553 new satellites over the next decade, averaging more than 150 per year.

The U.S., China, Russia, France and Japan represent the top five national space programs. The U.S. budget in 2018 totaled $40.9 billion, 58% of the world total, down from 75% in the early 2000s.

Looking ahead, the civil budget

is likely to grow smoothly, averaging 1.5% over the decade, whereas the defense budget will experience strong growth (5% annual average) in the short term,

SpaceNews.com

https://spacenews.com/op-ed-global-government-space-budgets-continues-multiyear-rebound/