Navigating Space
Navigating Space
space
A vision for space in defense
August 2021
home.kpmg/space
Foreword
The space domain is becoming
more congested and contested.
New technologies are rapidly emerging.
Barriers to entry are falling. New players
– both governmental and commercial
– are vying for advantage. At the same
time, humanity’s reliance on space
activity is becoming more ingrained every
day. Once supreme in the space domain,
the defense sector is being forced
to reassess the role they play in this
increasingly critical domain.
NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 3
Megan Wenrich
Manager, DC Operations
Space Foundation
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Throughout this document, “we”, “us” and “our” refers to KPMG and Space Foundation.
NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 4
Into the
constellation
Since the dawn of space exploration,
the military has been on point. The
first satellites were funded by defense
departments. The first astronauts were
air force and navy personnel. Many of
the technologies now driving space
exploration were born in government
labs and research facilities.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 5
From the very beginning, the potential Non-governmental organizations are crowding
into the domain – most notably led by commercial
for conflict has been clear. It started
ventures such as SpaceX. And that is changing the
with the ‘space race’ between the focus for many military players. Whereas in the past,
US and the Soviet Union. government spending tended to focus on things like
new earth observation, space situational awareness
(SSA) and satellite communication capabilities, these
Since then, space assets have been directly involved
are increasingly being offered commercially, as ‘off
in theaters of war – ground stations were attacked
the shelf’ solutions.
during the 1991 Gulf War and in the 2011 conflict in
Libya. A number of countries have developed direct It is not surprising, therefore, that space has
ascent, kinetic capabilities (even though the become an increasingly important domain for
impact on Earth’s orbits are now well understood). defense and national security operations. As one
The jamming of SatCom and GPS networks has of our interviewees aptly stated, the space domain
been reported in numerous regions and theaters is becoming more contested and more congested.
of conflict. Defense departments have long viewed Between 2019 and 2020 the number of spacecraft
space as a key domain of warfare. launched per year more than doubled, with
expectations there will likely be 100,000 satellites
Now, however, the hegemony of a handful of military
in orbit by the end of the decade. And, with more
departments over the space domain is being eroded.
countries and companies now joining the ranks of the
A growing number of countries are realigning their
space-faring, the focus on the domain and the role
defense organizations to recognize the importance
played by the defense sector is growing.
of space. The US has, perhaps, been the most public
with the creation of the Space Force. But many As many of our defense and industry interviewees
others – including Australia, Canada, China, France, noted, we have entered into a period where the
India, Japan, Russia and the UK – are also busy rules of the road must be defined if society would
establishing space commands in order to develop like to ensure the longevity of human habitation
domestic capabilities and enable foreign partnerships and operation in space. Achieving broad consensus
with likeminded nations. around global norms of behavior and policy will likely
be critical to humanity’s ability to achieve benefits
At the same time, there is growing recognition of
from the space domain. And it is more important
the value that investment into space capabilities can
than ever to help stakeholders as they aim to ensure
provide to the military, governments and humanity
humanity’s safety in space and on Earth.
more broadly. Indeed, humanity increasingly views
space as a domain of opportunity and inspiration
– in orbit and on the planet surface. Many of the
capabilities now being developed for space can
deliver broad benefits to civilians (things like assured
communications, the protection of space assets,
manufacturing in space, space tugs, laser and optical
communication, and others as yet unimagined).
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 9
I think we’re going to see the Agility and speed will define
cislunar space become increasingly capability development in the
interesting and regularly populated. future. Traditional approaches to
We’re really focused on new
And there will start to be the defense capability development and
models for our space capability
foundations of real space logistics – procurement are not fast enough or
acquisition. We want more agile,
things like tugs, propellant structures flexible enough to keep up with the
slimmer processes that help
and other technologies that may not pace of innovation and development
companies engage with us without
exist today. in today’s space domain. SpaceX
all the legacy red tape. That being
reportedly builds 6 or 7 StarLink
Mandy Vaughn said, it’s easy to say you want to
satellites every day. Many launch
CEO, GXO Inc and former CEO, ‘fail faster’, but in practice this
new capabilities every three
VOX Space LLC can prove challenging as we are
months. As such, defense leaders
spending public money – the trick
Commercial companies will play are rethinking how they might
will be to implement acquisition
an invaluable role. Already, we are develop new procurement and
processes that are more agile,
seeing a plethora of new commercial development capabilities that would
whilst retaining an acceptable
ventures focused on supporting and help them work with a broader
amount of oversight.
defining capabilities and mission range of smaller providers. Expect
architecture, particularly in the fields to see more Initiatives like the US’s
Air Vice Marshal Harvey Smyth
of Space Situational Awareness Space Development Agency and the CB, OBE, DFC, Director Space,
(SSA) and Earth Observation. UK’s Space Pitch Day in the future. UK Ministry of Defence
In fact, a number of companies
already boast commercial capabilities
that are highly competitive when
viewed against those of many
defense functions. With this data
now being offered ‘as a service’
from commercial players, defense
advantage may increasingly come
down to who has the best analytical
tools to derive useful intelligence
from the data.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 10
Prediction
3
Partnerships will be critical
to long-term success
Existing partnerships will Newer markets to the domain
strengthen and expand. will focus on specific strengths.
Recognizing the value of With more than 100 countries
partnership and collaboration in now boasting satellite programs,
space activities, development there are greater opportunities
and investment, we are seeing for collaboration on defense-
significant efforts to expand specific capabilities. Working with
existing partnerships and alliances. established leaders, the UAE,
NATO, for example, is establishing for example, went from having
a space center to enable better no space program to launching a
coordination around space mission to Mars in just 6 years.
communications and intelligence. That being said, our interviews
The US-led Combined Space suggest that smaller and emerging
Operations Center (CSpOC) aims to market players may find more
improve collaboration between the success in focusing on a smaller
US, Australia, Canada and the UK, number of strengths that can
with support from France, Germany deliver a longer economic and
and New Zealand. In most cases, technological impact.
particular focus is being placed on
encouraging collaboration between
allies and commercial and civil
operations including the use of From a geopolitical, physical and
dual use satellite partnerships with capabilities perspective, Thailand is
civilian and defense payloads. well positioned to lead Southeast
Asia in areas like Space Situational
Awareness and Space Traffic
Management. We are now looking
Many NATO members already at capacity-building through training
have their own space domain and knowledge transfer to help us
capabilities. And it is clear that operate in space activities.
those national entities are here to
stay. What we can do is help them Thagoon Kirdkao
Chief of SSA/STM Education
enhance their collaboration, share
and Network, Advisor to the
ideas and work together. Subcommittee of SSA/STM
Thailand, previously Director of
Lieutenant Colonel Henry Heren Space Affairs Division,
US Space Force,NATO Joint Air Royal Thai Air Force
Power Competence Centre
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 12
Alignment
conflict. Yet there is growing to see existing limitations (such
criticism that the traditional as ongoing export restrictions on
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 13
Organization structure,
workforce and training will be
reimagined. Defense organizations
need to evolve from ‘industrial
age’ organizations into ‘information
age’ ecosystems. And that means
capabilities and decision-making
frameworks need to change.
As social expectations shift and
governments redefine the meaning
of ‘defense’ in a digital era, it is
expected to see a range of new
challenges and potential points of
conflict and partnership to emerge.
And each can manifest differently,
impacting different players
and sectors. To efficiently and
effectively evaluate and address
these rapidly-emerging issues,
therefore, the space domain needs
a framework of norms, policy and
doctrine that is flexible enough and
robust enough to meet a range of
potential situations.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 14
014
Actively work towards Get the policy right Look for dual-purpose
consensus and in the short term. opportunities.
collaboration. Historic players may want to Work with national space
While focusing on existing focus on encouraging iteration; agencies and others to develop
forums and on new capabilities emerging players may want to local industry and emerging
(such as proximity operations), identify areas where they can capabilities. In particular, look for
look for higher-level platforms lead and they are willing to dual-purpose opportunities (there
that may lead to more impactful share. Create demand signals is little difference between the
and timely results. Consider for industry up front so they sensors for monitoring carbon
reducing classifications can invest accordingly. levels and those for missile
and integrating unclassified detection, for example).
intelligence data from
commercial sources.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 15
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 17
Voices
Leaders of Space in Defense
KPMG International and the Space Foundation teamed up
to talk to nearly two dozen industry and defense leaders at
the highest levels of the space domain.
We asked them about their views, opinions and predictions on
the future of the domain over the short, medium and long term.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 18
O N PA RT N E R S H I P S
The space domain is inherently global– it has the ability
to unite global partners like no other domain. That is
why we are putting partnerships front and center.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 19
O N M U LT I L AT E R A L C O O P E R AT I O N
Where people go, conflict inevitably follows.
The problem is that the multilateral forums that
have been created to handle this topic aren’t
making any progress.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 20
ON LEVERAGING
C O M M E R C I A L CA PA B I L I T I ES
There is a massive amount that Defense Space can
learn from the commercial sector, and there are
definitely capabilities in the commercial sector that
Defense could leverage.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 21
ON DEVELOPING
N E W CA PA B I L I T I ES
Our ambition at the French Space Command is
really to maintain our freedom of access and our
activity in, from and to space.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 22
ON DEVELOPING SKILLS
A N D CA PA B I L I T I ES
New Zealand is a fairly new player in the space
domain. If you look at the NZ specific environment,
just looking at the search and rescue region we
are responsible for supporting, it literally goes
from the equator to the south pole, so you can
see the challenge. So part of our focus is really
on upskilling people around the opportunities,
risks and considerations in the fast-moving space
technology sector.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 23
O N I N T E G R AT I N G S P A C E I N T O
THE DEFENCE DOMAIN
In a modern defense force, I don’t think any domain
or any mission can be neatly segregated and put
under the command of only one individual. The
days of owning everything you need to do your job
are largely over. Everyone’s mission is going to be
enabled by everyone else. So I think it’s about being
clear about the accountabilities, responsibilities and
authorities and assigning resources, generating
expertise, and achieving a critical mass so that the
people that are responsible for our outcomes can
drive those outcomes – without having to own every
part of the value chain.
Air Commodore Phil Gordon
Director General Air Defence and Space, And that’s where I think the real sophistication of our
Royal Australian Air Force future approach will be. Not by ensuring there is one
Australian space organization that owns everything
related to space. But rather by ensuring we have
unambiguous leadership with the authorities and
levers in place to take a forward thinking enterprise
view so we can effectively coordinate, shape
the behaviour, drive the standards, influence the
integration and help set the priorities, such that it
all comes together in a way that adds value to the
Australian Defence Force (ADF).
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 24
ON BUILDING
THE ECOSYSTEM
It’s going to take a lot of trust and collaboration
to accelerate innovation in the space domain.
Defense organizations like Space Force will need
to create a North Star vision that makes funds
available by mission area, not by program of
record. The big primes need to be mentoring the
smaller companies, bringing them in as part of
their infrastructure and helping them navigate the
system. The little guys need to be finding those
pockets of good customer interactions – areas like
the SBIR and space works are often good
entry points.
Lieutenant Colonel Henry Heren
We really need to be Sherpas for those companies US Space Force,
NATO Joint Air Power Competence Centre
– whether it is through organizations like GXO,
through the primes or through groups like the
Defense Innovation Unit – we need to be actively
encouraging these pockets of innovation and
helping them join the ecosystem. ON DEVELOPING NORMS
FO R S PAC E
There’s a lot of interest in finding and establishing
international norms for the space domain. But how
those actually get fleshed out will be interesting. Who
signs off on them? What are people willing to sign off
on and what aren’t they willing to sign off on?
Mandy Vaughn
CEO, GXO Inc and former CEO,
VOX Space LLC
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 25
O N T H E I M P O R TA N C E
OF SPECTRUM
There is increasing discussion on the need for
space infrastructure to become more standardized
and modeled more like open architectures where
you can plug in and add the intelligence. We are
likely to see a lot more software defined payloads.
Now, there are laws of physics involved which
will not allow you to just shift through all bands
with an efficient architecture, but how you use the
capacities will be an enabler. I think the one big
gating item that might stand in the way, however, is
the spectrum. It’s a finite resource. So whoever is in
a good spectrum position and can maintain that will
Steve Isakowitz likely have an upper hand in terms of creating value.
President and CEO,
The Aerospace Corporation
ON THE NEED
F O R S TA N D A R D S
One of the big challenges in space today is that
when someone builds something, it is often
so unique that they are the only operators with
that capability. But that makes it very difficult for
potential partners to onramp and offer up new
innovations and ideas. In the future, I expect we
will be building in orbit – putting things together,
repairing them, moving them around and refueling
them, all while in orbit. That will require a certain
level of interchangeability going forward.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 26
Thagoon Kirdkao
Chief of SSA/STM Education and Network, Advisor to
the Subcommittee of SSA/STM Thailand, previously
Director of Space Affairs Division,
Royal Thai Air Force
O N D R I V I N G M I L I TA R Y A N D
CIVILIAN CONNECTIVITY
The relationship between civilian and military space
activities is key, particularly as we try to share
capabilities and experiences between the two.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 27
ON SIMMERING
S P A C E W A R FA R E
Space warfare – in the broad sense – is already
happening. We’ve seen attacks on ground
segments and link segments of space systems.
And while there have not been any confirmed
reports of attacks on the space segment – the
satellites themselves – it is not mere conjecture to
think that an attack could occur there at any time.
Not just the destruction of a satellite, but there
are other methods of attack such as laser and
microwave, electromagnetic pulse and capture and
orbital changes. There are countries that already
Major General José Vagner Vital possess these capabilities.
Executive Vice President,
Brazilian Air Force
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 28
O N T H E N E E D F O R A N AT I V E
S PAC E P R O G R A M
We are seeing more and more markets re-thinking
the question of whether they need satellites when
they can buy the pictures commercially?
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 29
O N G E T T I N G VA L U E F R O M
THECOMMERCIAL SECTOR
The commercial space ecosystem is rapidly
changing. And many defense organizations are
challenged in understanding how to maximize the
value and contribution to mission that they can get
from the commercial sector.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 30
O N P R O C U R I N G I N N O VAT I O N
Procurement and innovation cycle times are out
of synch. China demonstrated they could disable
satellites in 2007, however it wasn’t until 2015
that the US launched the third offset strategy
focused on new technologies and innovation,
resulting in what is now NSDC [National Space
Defense Center].
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 31
Bill Gattle
President,Space Systems, L3 Harris Technologies Inc.
ON KEY ENABLERS
A N D I N N O VAT I O N
Currently, there is a focus on what the key enablers
are going to be for operating in the domain in the
future and I see two key thrusts. To start with, we
need a ubiquitous network to provide zero latency
connection. We then need a proliferated sensing
network for space situational awareness. This will
enable us to protect and defend high value assets,
by knowing what is around them and with the
tracking of hyper-flight vehicles. Ultimately, these
two focus areas are going to enable a proliferated
system well beyond LEO and GEO. The one thing
we must get right in the near term though, is a
standardized infrastructure that everyone can
play with and interconnect through, just like the
terrestrial cellular network.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 32
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 33
ON CONGESTION
If left unchecked, Space congestion – which is a
problem today and will be a bigger problem
in the future – is particularly concerning for
defense organizations.
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NAVIGATING SPACE A VISION FOR SPACE IN DEFENSE 34
ON CONGESTION
Collaboration with our allies and with industry
is essential to protecting our interests in space
and ensuring freedom of action by creating new
capabilities, sharing data and intelligence and
executing coalition operations.
O N AWA R E N ES S
The pandemic made everyone – commercial,
civilian and military – realize how much we rely
on space for information and data. But while
we recognize how critical these assets are to
our entire global ecosystem – everything from
financial data to weather, communications and
sensing – there is a growing realization of just
how fragile our space assets are. If I think about
our position on Earth today, climate change is a
civil space focus, however there’s not a universal
responsibility for the well-being of our planet. I
see an increasing impact from climate change
on National security and as a result a split role
between defense and civil space to gather
information and provide the space tools and
technologies to manage it. Roy Azevedo
President,
Raytheon Intelligence & Space
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Acknowledgements
Nancy Barrett
Emma Cleary
Louise Davidson
Steve Eisenhart
Erez Henig
Keith Kaetzel
Avtar Jalif
Sofia Lanfranconi
Brittany Lovett
David McCourt
Susumu Miyahara
Catherine O’Malley
Neil Rae
Karin Rorke
Peter Schram
Jodi Slattery
Contact us
Grant McDonald
Global Head of Aerospace & Defense
KPMG International
+12464343900
[email protected]
home.kpmg/space
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and
timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such
information without appropriate professional advice after a thorough examination of the particular situation.
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Throughout this document, “we”, “us” and “our” refers to KPMG and Space Foundation.
KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity. KPMG
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AUGUST 2021 [713601660 IGH]