BAE Systems plc BAESY recently announced that it secured a contract from the U.S. Space Force's Space Systems Command to design and demonstrate ultra-compact radio-frequency terminals for a space-based data layer. The contract aims to strengthen resilient satellite communications (SATCOM) capabilities for critical military operations.
Under the agreement, BAE Systems will develop terminals based on its proven family of space-hardened software-defined radios. These systems are designed to maintain reliable communications in challenging environments affected by jamming, electromagnetic interference and space radiation. The terminals will feature military-grade security and undergo space-characterization testing to support operations across multiple orbits, from low Earth orbit (LEO) to geosynchronous Earth orbit (GEO).
BAE Systems will also collaborate with government partners to demonstrate the technology using an Application Programming Interface that enables precise pointing between payloads. The company is preparing for scalable production to meet future military communications requirements.
BAESY's Satellite Communications Expertise
BAE Systems' satellite communications capabilities are backed by more than 50 years of phased array design and manufacturing experience. Its electronically steerable antennas (ESAs) provide secure, high-speed connectivity across multiple satellite networks, frequencies and platforms, supporting government, military and commercial applications.
The company's Ku- and Ka-band SATCOM antennas use fully electronic phased arrays without mechanical moving parts. These antennas support connections across GEO, medium Earth orbit and LEO networks, enabling reliable communications for land, air and maritime platforms.
BAE Systems' software-controlled ESAs can rapidly track satellites and maintain communications during dynamic movements. Their low-profile design, multi-orbit compatibility and 360-degree field of view strengthen connectivity in challenging operating environments.
The company has demonstrated its SATCOM terminals across GEO and LEO networks, including a Ku-band antenna capable of switching between satellite orbits during flight. These capabilities position BAE Systems to support growing military demand for flexible and resilient satellite communications.
Growth Potential for BAESY & Other Defense Stocks
Increasing demand for secure military communications, real-time information exchange and reliable connectivity is driving investments in satellite communications systems. The need to maintain communications despite electronic interference and other emerging threats is encouraging defense organizations to modernize their space-based networks.
The Mordor Intelligence firm predicts that the satellite communication market will witness a CAGR of 6.14% between 2026 and 2031. This outlook bodes well for BAE Systems, which offers advanced satellite communications technologies, including electronically steerable antennas, software-defined radios and space-hardened communication systems.
Given the favorable growth outlook for military satellite communications, other defense contractors such as Northrop Grumman Corporation NOC, Airbus SE EADSY and Lockheed Martin Corporation LMT are also positioned to benefit from increasing investments in secure space-based communications.
Northrop Grumman offers advanced military satellite communications solutions backed by more than four decades of experience. Its portfolio includes protected tactical satellite communications, the Enhanced Polar System-Recapitalization, GEOStar communications satellites and associated ground systems, supporting secure connectivity for military operations.
NOC's Protected Tactical SATCOM Rapid Prototype is designed to maintain real-time communications in environments affected by sophisticated jamming threats. The system uses advanced onboard processing and antenna arrays to automatically detect and counter interference, helping military forces maintain secure and reliable connectivity.
Airbus provides secure military satellite communications solutions, including SATCOMBw, Syracuse IV, SPAINSAT NG and Skynet. Its portfolio encompasses satellites, ground stations and integrated communication services that support military connectivity across land, sea, air and space operations.
Airbus' Skynet system provides secure beyond-line-of-sight communications for the U.K. Armed Forces. Its hardened X-band satellite constellation and ground network enable reliable voice and data transmission across military platforms.
Lockheed Martin develops advanced military satellite communications technologies that provide secure connectivity for mobile forces. Its Mobile User Objective System (“MUOS”) combines satellites and ground relay stations to support reliable communications for military personnel operating across different environments.
LMT's MUOS system operates as a global military cellular network, delivering secure, beyond-line-of-sight Ultra-High Frequency communications. The constellation includes four active satellites and one on-orbit spare, supported by four ground relay stations. It enables simultaneous voice, video and mission-data transmission for more than 67,000 military user terminals worldwide.
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