Global satellite manufacturing and launch system market is projected to witness a CAGR of 12.01% during the forecast period 2024-2031, growing from USD 25.03 billion in 2023 to USD 62.03 billion in 2031.
Space programs have played an essential role in supporting and transforming economies. As significant communication and navigation networks operate through orbital satellites, nations are investing in satellite manufacturing and launch systems. The recent trend shows a spike in the adoption of minisatellites and cubesatellites due to lower cost and higher mobility. For instance, NASA Ames launched 16 CubeSats in December 2006. Furthermore, the entrance of private players in space exploration and communication technology is expanding the market size. Some players are emerging as an alternative with reusable rockets and launching technology.
Another evolving trend in supplying power to the rocket is using different fuel types. It includes liquid propellants such as liquefied natural gas, methane, and highly refined kerosene (RP-1). For instance, China’s Landscape Technology Corporation launched the world’s first methane-propelled rocket named Zhuque-2 in July 2023, while it delivered three satellites in December. Methane propulsion holds advantages such as lower cost of production, less coking, higher specific impulse, and less complex ignition. The government is setting up research programs to advance satellite manufacturing and promote innovative and efficient launch ideas.
Miniaturization and Nanosatellite to Deliver Opportunities for Space Exploration
The advanced satellite launching technology is powered by small-sized satellites with expanded capacity. Furthermore, compact, lightweight, and cost-effective satellites are in high demand. These satellites are being used for earth imaging and science missions within a quick turn-around time (TAT). Many banking and finance players are setting up their communication satellites for better operations. The advent of nanosatellites or CubeSats has shortened the development and production of satellites. The increased consumption of satellite technology due to increased exploration and observation is transforming the launch system. The utilization of artificial intelligence (AI) and machine learning (ML) has increased space traffic with enhanced data processing technology. These components play a pivotal role in satellite data interpretation.
For instance, space exploration giant SpaceX launched 22 Starlink V2 mini-satellites into orbit. The Falcon 9 rocket carried these mini satellites, which are powerful versions of its earlier Starlink spacecraft. The company has fitted these satellites with hall thruster electric propulsion systems. SpaceX used its reusable Falcon 9 rocket for the launch. Its first-stage booster returned to the Atlantic Ocean.
Another example is the Indian Space Research Organization (ISRO) launching JANUS-1, a software-defined 6U demonstration satellite, in February 2023. The satellite was created entirely on the Antaris software platform within ten months. Furthermore, several payload and subsystem providers around the globe are a part of the mission.
Increased Space Tourism and Advanced Propulsion Tech to Gain Traction in the Market
High-speed global connectivity is thriving upon new communicative measures. New space tourism programs require better space imaging information, so companies structured their payloads and space exploration satellites in various orbits. Space tourism and exploration are expected to push the boundaries of satellite technology and unlock potential around the space ecosystem. The integration of artificial technology, improved space data collection, and increased shelf life are at the center point of satellite manufacturing. From launching systems to sub-systems, the innovation in propulsion is shaping the future satellite launch programs. It allows miniaturized satellites to function in lower orbitals, limiting the overall cost. Furthermore, more powerful satellites and launch systems are driving the satellite manufacturing and launch system market growth.
In December 2023, Blue Origin successfully launched its New Shepard rocket with an uncrewed manifest of 33 NASA scientific payloads. The payloads include components that will study the orbits and deliver better information to help the space exploration program, which will enable humans to travel in space.
Winning the Space Race with Affordable Costs, Greener Fuel, and Successful Satellite Launchers
Cost-effective usage of green fuel and upcoming innovative ideas have enabled governments to invest in the space race. The technologically driven world depends upon satellite communication technology. Emerging economies, such as India and China, are hopping on the space ladder with innovative technology and alternative fuels. The private space sector across the globe is getting investment through governments as they build new launching satellites and launch systems. In May 2023, the government of India announced its space policy in 2023. The objective of the policy is to create a supportive regulatory framework for the promotion of private involvement in all-encompassing space activities. With the implementation of the policy, Indian consumers can purchase space technology or space services, such as communication services, remote sensing services, data launch services, etc., from private or public sources.
Apart from communications and earth observation, governments across the globe use these satellites for defense applications such as surveillance satellites. For instance, China added another surveillance satellite, Yaogan to its orbital fleet in September 2023. The satellite is expected to be a radar reconnaissance satellite with an undisclosed payload.
Improved Internet to Contribute Toward Communication Segment Dominance
Based on application type, the communication application of satellites dominates the market share. The communication satellite segment performs significantly well during the forecast period. Increasing demand for internet services due to high data transmission speeds has led to an increase in the number of communication satellites deployed in low earth orbit (LEO). The military surveillance segment is expected to gain traction throughout the forecast period. The segment is driven by the increasing emphasis on extending satellite networks to enhance military surveillance in developing countries such as China and India.
For instance, in January 2024, ISRO announced its partnership with United States SpaceX to launch its GSAT-20 communication satellite. The satellite weighs 4,700 kg and has been loaded with a Ka-Ka band and a high throughput capacity of 32 beams. ISRO has chosen SpaceX’s Falcon 9 rocket for launch in August 2024. The satellite is expected to cover Pan-India along with the unconnected areas of Jammu and Kashmir and Lakshadweep Island.
Private Partnerships and Government Investments to Flourish the North American Market
North America holds a significant share of the global satellite manufacturing and launch system market. The United States has always been a leader in the space race. The growth is attributed to high investments in privately owned space companies. These companies work on reusable, sustainable, and affordable satellite technologies. For instance, in June 2023, the National Aeronautics and Space Administration declared its partnership with seven United States private companies, including SpaceX, Blue Origin, and Northrop Grumman. The partnership is expected to focus on helping these organizations with low-earth orbit space missions. In May 2023, A Blue Origin-led team won a USD 3.4 billion contracts from NASA to construct a spacecraft to transport and land on the moon. NASA’s selection of Blue Origin is expected to give the company a second chance to send astronauts to the moon under the Artemis program. Developments like these are helping many startups that work for satellite technology and launch systems.
Report Scope
“Satellite Manufacturing and Launch System Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, provides in-depth analysis and qualitative and quantitative assessment of the current state of the global satellite manufacturing and launch system market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
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