The worldwide market for satellite radio frequency (RF) components will reach $4 billion as early as 2001, according to a new 345-page market study from Silicon Valley research firm Strategies Unlimited.

The report, Communications Components for Satellites —

1998-2007 Market Review and Forecast, projects that demand for

satellite RF payload components, including subassemblies and modules,

will accelerate from $1.4 in 1997 billion to $4 billion in 2001, a

compound annual growth rate of 29%.

RF semiconductor shipments for satellites will grow at an even

stronger rate of 42% annually through 2001, reaching $450 million.

Much of this growth will be driven by Ka-band and Ku-band active array

systems using gallium arsenide (GaAs) monolithic microwave integrated

circuits (MMICs). Demand for silicon RF components will increase as

second-generation intelligent mobile satellite systems with increased

signal processing requirements are launched between 2000 and 2005.

Major satellite operators have made significant strides recently

in their efforts to build extensive new space infrastructure that will

provide a variety of new mobile and fixed satellite services.

Commercial services launched a record 80 satellites in 1997. The

Iridium global mobile personal communications system (GMPCS)

66-satellite phone constellation is now fully deployed, and Iridium

service is on schedule to begin in September 1998.

Globalstar, also a GMPCS constellation, has launched 8

satellites as of August 1998, and plans to have its full 48-satellite

constellation in orbit and operational by the end of 1999. The

progress of these efforts and others bodes well for the 288-satellite

Teledesic project. The recent decision of Iridium creator Motorola to

invest in Teledesic and act as prime contractor gives the project

greater credibility.

Further developments in satellite technology will create a range

of new opportunities for RF/microwave component and semiconductor

suppliers. New active antenna designs include larger percentages of

solid-state active components, printed circuit boards and other

high-volume components. Companies with proven production capabilities

in these areas should benefit as demand grows and as satellite

manufacturers increasingly seek outside sources of supply.

The market study provides an in-depth analysis of satellite

service and manufacturing trends in five market segments and 17

applications. Demand for RF, microwave and millimeter-wave components,

and semiconductors is forecast based on the applications analysis,

a detailed satellite launch forecast and a review of numerous

different satellite communications payload architectures. The study

profiles 11 major satellite suppliers and includes system details on

22 major proposed constellations.

Communications Components for Satellites — 1998-2007 Market

Review and Forecast includes over 173 illustrations and 195 tables and

is available for $4,750.

Strategies Unlimited