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The Satellite Manufacturing and Launch Market size is estimated to increase by USD 3.92 billion, at a CAGR of 3.2% between 2023 and 2028. The growth of the market hinges on several key factors. Firstly, there is a notable reduction in the associative launch cost, driven by advancements in launch vehicle technologies and increased competition among space service providers. This cost reduction enhances accessibility to space and encourages more frequent satellite deployments and missions. Secondly, there is a rising demand for multirole satellites capable of performing diverse functions such as communication, Earth observation, and scientific research, reflecting broader applications and operational efficiencies in space. Thirdly, expanding the scope of space exploration, including missions to explore celestial bodies and study deep space phenomena, drives innovation and investment in space technologies. These trends underscore a dynamic market landscape where affordability, versatility, and exploration drive growth, positioning the space industry for continued advancement and evolution in satellite technology and space exploration capabilities.
Market Forecast 2024-2028
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The market is experiencing significant growth driven by various sectors such as government agencies, defense forces, and satellite manufacturers. The demand for communications satellites and advancements in satellite mission technology are crucial, particularly with the rising importance of satellite intelligence services and GPS for precise navigation and positioning. Government initiatives, including the establishment of the Defense Space Agency (DSA), are enhancing capabilities in space warfare and satellite data transmission. Companies like Airbus Defence and Space are pivotal in satellite manufacturing, catering to needs across low Earth orbit (LEO), geostationary orbit (GEO), and medium Earth orbit (MEO). The market also benefits from innovations in tactical communication systems, SATCOM, and C4ISR integration for military and government applications, including UAV operations and tactical data links. This dynamic environment underscores ongoing advancements in space observation and the integration of satellite technologies into critical infrastructure worldwide. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
As the advancement of technology has drastically changed the nature of wars, the defense agencies of different countries require space capabilities to address the need for operationally responsive forces for various military requirements, such as communication.
Thus there is an increase in demand for nanosatellites due to several advantages, such as high visibility against the tactical operations of enemy forces, rapid access to near-real-time information, and imagery that can be helpful for the aerial reconnaissance augmentation process. Hence such benefits can lead to an increase in demand and thereby drive the market growth and trends growth during the forecast period.
Nanosatellites, or CubeSats, are a significant development in the global market. Typically they weigh less than 500 kilograms, and are characterized by their compact size. The advancements in electronics, sensors, and propulsion systems resulted in the development of highly capable small satellites that can perform complex missions. This has significantly reduced the manufacturing and launch costs associated with development.
As they require less material, fewer resources, and simpler manufacturing processes, they have fewer production costs and thus have significant cost advantages over larger ones. Additionally, the shorter development cycles of small ones allow for faster deployment and quicker adaptation to evolving mission requirements. This makes them the best option for various applications, especially for companies and organizations with limited budgets and time constraints. Thus the growing adoption can significantly drive global market growth during the forecast period.
As the development involves extensive R&D activities, which require significant investments in technology, engineering, and testing, it has become very expensive to manufacture. R&D costs can be substantial, especially for advanced systems with sophisticated capabilities, such as communication, Earth observation, or navigation. Thus the funding and resource allocation required for R&D can pose a major challenge for manufacturers. Some other challenges include complex processes and specialized components that require advanced technologies and expertise for manufacturing. Thus the above factors can significantly hinder the growth of the market during the forecast period.
The communication satellites segment will account for a major share of the market's growth during the forecast period. One of the main functionalities of these is to facilitate various types of communication services, including television broadcasting, telephone networks, internet connectivity, and data transmission.
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The communication satellites segment was valued at USD 12.42 billion in 2018. In terms of the global market, the segment mainly involves the design, manufacturing, and deployment that facilitate long-distance communication across the globe. There is a rise in demand as a result of the increasing need for reliable and high-quality communication services, including voice, data, and multimedia transmissions. Due to the growing global connectivity requirements, particularly in remote or underserved areas, there is a rising demand as they can provide coverage over wide geographical regions. Hence such factors can significantly drive the growth of the segment in the global market during the forecast period.
Based on product, the market has been segmented into satellite launch and launch services. Due to the demand for a plethora of applications ranging from military surveillance, communications, and navigation to earth observation, there is significant growth in the launch segment. As the level of sophistication required for manufacturing is very high, the market is more prominent in technologically advanced nations such as the US, Russia, China, France, and Japan. There is a significant boost in the manufacturing segment due to the advent of small and nano-satellites. For instance, in order to meet aggressive delivery schedules, RUAG Group is adopting technologies from other industries to augment its production capacity. Thus such developments are expected to drive the global market during the forecast period.
North America is estimated to contribute 50% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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As key areas such as US and Canada is home to several prominent players in the sector, there has been significant and thriving growth in the region. North America is one of the prominent regions with an established aerospace industry, advanced technological capabilities, and robust infrastructure, which has extensively contributed to its growth. Factors such as increasing demand, remote sensing applications, and national security requirements are expected to drive the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Airbus SE: The company offers the manufacturing of wind sensing satellite Aeolus and pollution monitoring satellite Sentinel 5P.
Axelspace Corp: The company offers AxelLiner for manufacturing microsatellites.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is thriving with advancements across various domains. Companies specializing in satellite manufacturing are focusing on robust satellite buses and subsystems, integrating advanced propulsion hardware such as gas based and liquid fuel systems. These innovations support the development of diverse satellite applications, including satellite communication, internet services, and weather forecasting. The market is witnessing a surge in demand for internet and telecommunications satellites, driven by global connectivity needs. Enhanced solar array and efficient launch systems enable cost-effective deployment of satellite payload, including nano and microsatellites, into desired orbital launch positions. This sector's growth is propelled by ongoing technological advancements, fostering capabilities in space-based services and expanding the reach of satellite-enabled solutions across industries and geographical regions.
Moreover, satellite manufacturing companies are at the forefront, developing advanced satellite bus and subsystems that incorporate cutting-edge technologies such as gas-based propulsion systems and efficient solar arrays. These advancements cater to diverse needs, including commercial applications like satellite broadcasting and weather forecast, as well as the deployment of nano and microsatellites. Rockets and sophisticated launch assembly systems facilitate the precise positioning of satellite payloads, while telemetry broadcasting ensures seamless communication and monitoring capabilities. As the demand for reliable satellite communication and data services grows, the market continues to evolve, leveraging technological innovations to meet the increasing global demand for space-based solutions across various industries.
Market Scope |
|
Report Coverage |
Details |
Page number |
185 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.2% |
Market Growth 2024-2028 |
USD 3.92 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.06 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 50% |
Key countries |
US, China, Canada, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus SE, Axelspace Corp., Blue Origin Enterprises LP, GeoOptics Inc., Honeywell International Inc., Israel Aerospace Industries Ltd., Leidos Holdings Inc., Lockheed Martin Corp., Maxar Technologies Inc., Mitsubishi Electric Corp., Northrop Grumman Corp., OHB SE, RTX Corp., Rocket Lab USA Inc., RUAG International Holding Ltd., Safran SA, Sierra Nevada Corp., Space Exploration Technologies Corp., Thales Group, and The Boeing Co. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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