One must be 'out (there)' to be 'in.'
Note: This updated version includes all world satellites until October 2008, and corrects a pair of errata in the previous version, that of April 6, 2007.
Having a space satellite orbiting the Earth has become, for a nation, in the equivalent of getting to a bar in a limo, escorted by two bimbos by the side. Having a nuclear device, in turn, is to acquire the membership to the exclusive club of the new world order. They come hand in hand.
There was a time when half of all the scientists in the world were employed for the army or the government —a period known today as the Cold War I. And the satellite fleet orbiting the Earth was doing exactly what it does today —only for mor selected clients. When the Iron Curtain falls, many of those scientists face unemployment (Russia), the prospect of working for 'generous clients' (North Korea, Lybia, Iraq,, Syria, Iran), or they face the threat of budget cuts. Therefore, NORAD shifts functions from monitoring possible soviet attacks, to monitoring the entire air traffic in the US; the Russian space program taxis for the super rick; and, among many other examples, satellite use is privatized.
The applications are endless. One can —for a modicum sum— do practically everything: from taking a snapshot of the 'ranch' with a 15 meters per pixel resolution, to providing secure super high frequency channels for governments and military agencies worldwide, in restricted bands, or having lucrative telecomm services, espionage, scientific development —you name it.
Virtually, all of our activities has to do with a satellite, without us ever knowing it: we wake up and turn the TV, which signals could come from a satellite. We drive or take the bus, boat, planes, which use GPS. We use cellphones and a satellites beams a signal for us. We send an email and one copy of it goes to the NSA for its subsequent analysis. We are simply being seted, without doing a thing, and radio signals are constantly bombarding our bodies.
Ok. They are important. So, how many satellites are there orbiting the world and what do they do? Who are the owners? Who is who in this satellite race game?

It is obvious who's the biggest dog out there. Today there are 898 satellites 'officially' orbiting the Earth. The United States has almost as much as the rest of the world combined (439). Following the lead, you have the usual suspects: Russia, in second place, has a modest 87 satellites. Not surprisingly, China, 45; Japan, 37, the UK, 21; India, 19 (and already a lunar mission); Germany, 15. France is in position 10, with 'only' 10 satellites. This leaves the real 'rest of the world,' with 198 satellites.
México has only 3. It should be noted, however, that given its proximity with the US —and its distance with God— that much of its coverage comes from the gringos' satellites, since it is easier to rent their services than to develop one of our own. In the case of Argentina (6) and Brasil 11, 3 in cooperation with China), an austral position compells them to transmit to those latitutes by means of dedicated satellites.

Long live free enterprise. The mayority of the world's satellites is used for commercial purposes. Seven hundred of them only to one, and only one, use: commercial. Not all of them follow that rule. At least 200 of them share two categories: military, government, civilian, or commercial. Following, a detailed list of each category:
Mexico uses all of them for commercial communications (cable, telephony, etc.) and to provide some communication services for the government. Nothing of it for military purposes —which is fine—and none is used for scientific purposes —which is very bad. Cheers for a consumerism-minded country.

The United Sates dominates, by far, posession and use of satellites. They possess as much military satellites than the entire Russian fleet —military or otherwise—, that is, 98 satellites for US military satellites. The same chart, excluding the US:

In this chart, a bit more even, Russia acquires a protagonic role, followed by China and Japan. This detalied view is very significant: while the US, the country of free enterprise and multibillion dollar bailouts, has a high number of commercial satellites (well above the other categories), in the case of other countries, you can tell the nature of their societies by how they use their satellite fleets. For most of them it is a luxury, not a commodity. Russia has more military than commercial satellites, which tells a lot about how their capitalism has not reached the entire society, and shows also de legacy of a preponderant huge-government, soviet style. China and India possess a small, but important number, of their fleets for governmental use. China has a small number of them for commercial purposes, but India has virtually none. Japan has a relatively ample fleet, but none has military purposes —a legacy from the past. Germany, curiosly, had another geopolitical destiny. As a member of NATO, it does posses military satellites. France, on the other side, does not keep satellites for civilian purposes —in a country where 1 in 7 is employed by the government. The UK is like a reflection fo the US, but in a smaller scale.

If satellites were to be summarized in one word, that word woul be communications. Any other use just pales by comparison. Following, by far, is navigation, mainly GPS. Russia and China have their own GPS systems, and they even interface. It is very strange to find that there is a small number of satellites used for reconnaissance and early warning. If we consider that these satellites, so sensitive they can detect the heat of a missile launch in any part of the globe, we ponder on the enourmous changes that have transpired since the disintegration of the Soviet Union.
Today, Russia counts with 4 satllites for early warning, while the US relies on 7.
Global positioning plays a minor role when speaking about satellite fleet number: Russia employs 27 satellites (a third of its fleet) in navigation and positioning. The US employs more, in absolute numbers, 31, but they represent only 7% of their fleet. China, a new actor, has 5 satellites for positioning (11%).

The main orbits in which satellites operate are mainly of two kinds: LEO (Low Earth Orbit), which altitudes does not trespass 2,000 km. Satellites with GEO (Geosynchronous) orbits are operating at 35,000 km (that's 3 times the Earth's diameter). Naturally, launching a GEO is much more complicated that launching a LEO satellite. The orbits for GPS satellites are called MEO (Medium Earth Orbit), and they are located virtually anywhere between 2,000 and 35,000 km.
Curiously Germany does not have those high altitude GEO satellites. They, for sure, have the resources to get one on their own. Why would this be?

France keeps virtually all of its satellites in low orbits. Little money?

India keeps an important number on GEO, and those are all government satellites. The majority of them are used for communications and remote sensing —from Pakistan? It will not come as a surprise than in short notice they start to provide commercial launches. Recently they have achieved a lunar mission and constructed a new launching platform. India is going all for it.

Japan does not possess military satellites. The satellite fleet they possess that is employed on scientific endeavours, are mainly operated by civilians and they keep a low orbit. Commercial satellites, those for communication, are orbiting in GEO.

The United Kingdom has one satellite, the ICO-F2, orbiting MEO. It is the first of a projected fleet of 10 units. Today it is used by the United States.

China has capitalized its services to the countries in the region, for which its commercial sector is important —barely behind the (overreaching) government. They keep one satellite for military purposes in MEO, for navigational purposes.

Russia is a nation that, comparatively, possess more satellites in MEO. All of them are used for positioning and navigation, for military purposes. They keep an important number of them in elliptic orbits, which is explained by Russia's latitude, forcing them to use eccentric orbits.

The US also makes good use of elliptic orbits. All of those in MEO have military purposes. While, comparatively cilian use is dwarfed by commercial, governmental and military applications, in absolute numbers, the civilian sector is quite healthy.
In general GEO orbits work for communications. Lower altitude orbits are destined for meterological observation and Earth studies. Elliptic orbits are used for astrophysics. Russia uses MEO for navigation (the equivalent of GPS), just like the US.

Rockets that could not make it to the top 10 are, for Russia, the Rokot, Tsyklon, and Zenit; India has the PSLV and GSLV; Japan hsa the H2 and M5.
The most popular delivery vehicle —rocket— is the Ariane (in all its incarnations), followed closely by the Delta. The Ariane rocket is mainly a European effort —with France having an important participation, 60%; Germany, 20%; Italy, 10%. Nonetheless, summing up all the rockets from the United States, you obtain a lot more satellites put into orbit, own and foreign alike.
Click in the picture to enlarge.
India, just recently, could not launch more than a satellite per year. Recently it constructed another launching platforma at the Satish Dhawan Space Center, in the island of Sriharikota.
Note: Europe does not launch from its territory. They rather do it from the Guyane, or from the Pacific Ocean, on board the Sea Launch —since 1999. However, for simplicity, I'll consider "Europe" those launches performed on the aforementioned sites. Sea Launch is a sui generis case. Boeing possess 40% of Sea Launch's interests, while Energia —Russian company— keep 25%. Norway has invested 20% and Ukraine 15%.
Not all of these delivery vehicles are designed to be launched in any Space Centre. For example, the Proton and Zenit rockets are so heavy they most be launched only from Baikonur. However, Baikonur presents a new problem for the Russian program: it is no longer on its territory. It still has Plesetsk, which most likely will play a bigger role in future launches.
The majority of the Russian launch centres were once intercontinental missile bases. It comes to no surprise that nuclear tests have been made in those regions as well.

Cape Canaveral (or Cape Kennedy) is the main launching site of satellites in the world. It is followed by Baikonur (which is in Kasakhstan, but leased to Russia until 2050). In third place comes the French Guyane. This 3 places are the main in the world.
If we categorize by country, the US comes on top, given the important number of launches from the West Coast, in Vandenberg, and near the BosWas —Boston to Washington area—, in Wallops Island. IT also launches from Alaska, though in fewer numbers. Again, Russia comes second, and on third place, Europe. China and India are the emerging players, putting in orbit a small number, but still higher than the technological colossus that is Japan.

It must be quite something to see a satellite launch. ¿How often do they launch them? For the sake of an example, let us take Cape Canaveral:

From the data we can see that at least once a year there are launches. Between 1998 and 2000 there were 9 launches. The year 2007 was also a good year to witness a launch.
The following charts show the dates in which different countries have launch the satellites that now orbit the Earth. This means that launches for satellites not operational today are not registered. This charts, are, to put it bluntly, a retrospective view.








Most of the satellites that orbit the Earth today were launched before the dot com bubble, between 1998 and 2000. There has been other peaks since then, and it looks like it was beginning to accelerate just right before the 2008 crisis. The future is uncertain.

While there has been satellites weighting 18 ton, there are also satellites as light as 1 kg, or less. In general, their weight, while on Earth, is 1 to 5 tons (51% of all the satellites orbiting the Earth). Satellites which weight (on take-off) is between 100 kg and 1 ton represent 30% of them all. Considering their functions, they are quite light. It better be worth it: they cost quite a lot of energy to put them in orbit.

While nominally there are few satellites lasting beyond 15 years, some of them are being used having passed more than two decades after their launches. As a general rule, the main 3 categories are, 1 to 5 years, 5 to 10, and between 10 and 15. Distributions are roughly equivalent. There is missing data for an important amount of satellites, but it logical to assume they follow the same tendencies as the published data.

The top 10 contractors take 64% of the market. All of them are well known. Space Sustems/Loral is at the top with 12o satellites launched. In second place is Lockheed Martin, having launched 104 satellites. Half of them were military launches. Not surprisingly, Lockheed is the main defense contractor in the US. Motorola has launched 74 satellites. All of them communications. In fourth place a Russian contractor (in multiple encarnations). Boeing goes next, in 5th, with 57 launches (15 of those military). Orbital Sciences is on place 6. Hughes (several subsidiaries) in place 8, with a good 33 launches. Alcatel and EADS (Frech companies) in 7 and 9 place.

In this market contractors are not very evenly represented: US contractors are 78% of the market. France keeps a surprising 10% vs a 12% Russian. Russia has not done quite good here. They might have put into orbit the world's first satellite, but they are far from being masters of the Space.
There are, nonetheless, other contractors that, while not being very prominent in a global scale, when taken to a regional level they become more protagonist. For example, in Japan, Mitsubishi has launched more satellites than JAXA, the japanese space agency, with 8 against 3.
Northrop Grunman is, surprisingly, missing from the picture. They barely have launched. For a time, there was something called Daimler-Benz Aerospace —now merged into what is today EADS— and General Electric Astro, with at least one launch.
Drilling down to organizations operating a satellite, the top 10 are,

Iridium Satellite LLC, has 75. All of them belong to a US government communications project. The fleet is inmense, with 66 plus 13 as 'spares.' According the information released by the UCS, that fleet has from 15 to 20 control stations, with an HQ in Landsowne, VA, and probably one in Italy. The engineering centre for that project is located in Chandler, AZ. Aparently it went bankrupt in 2000, then it was bailed out by DoD. The purpose of the fleet is to provide communications to 20,000 government employees.
With 55 satellites, the Ministry of Defense, in Russia, is the second most important player. Globalstar follows next, with 43.
The Globalstar case is quite interesting. Its satellites are mainly used for communications, but Globalstar has told that there was extensive damage to most of its fleet. This could jeopardize its position.
Several well-known actors follow: DoD, NASA and the Air Force occupy places 6, 7 and 8, respectively. For themselves, they keep more that 100 satellites. A lot more than most of the rest of the world.
It comes to no surprise that universities play an imporant role in the economy, in terms of R&D.

Twenty three satellites are operated by universities in the United States alone. In descending order, the list is the following:
In this case: CalTech beats MIT.
Japan goes in second place. Tokyo University controls a fleet of 7. Tokyo Institute of Technology controls 2. Nihon University, 1.
Saudi Arabia has 10 satellites, through its space research centre, in Riyadh.
Not in the list is Italy, the Netherlands and the Czech Republic. They all have at least one University with one satellite. For Italy it is the Universidad La Sapienza, in Rome.
These guys are heavy.