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The satellite market size is estimated to grow by USD 14.53 billion, accelerating at a CAGR of 3.31% between 2023 and 2028. In North America, the US dominated the market in 2018 projecting an annual revenue of USD 37.64 billion. The demand ffrom the civil sector has increased in the US, especially for navigation, communications, and location-based services (LBS). The use of satellites in military and civil applications has become very popular in the region. As a result, many small and private technology providers are investing in the development and launch of services that use satellites. Such factors are driving the market growth.
Satellite Market Forecast 2023-2027
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In the realm of space technology, the proliferation of orbital debris poses challenges for the deployment of satellite constellations and access to emerging markets. Spectrum allocation is crucial for managing the increasing demand for bandwidth, but regulatory hurdles often impede progress. Nevertheless, ongoing technological advancements drive innovation in space exploration and satellite technology, enhancing geographical coverage and enabling a variety of satellite types operating at different orbital altitudes. Market analysts play a key role in conducting market growth and forecasting, providing valuable insights into industry trends and opportunities for strategic decision-making based on accurate market forecasting. As space technology continues to evolve, addressing these challenges will be essential for sustainable growth and development in the space sector.
Satellites are primarily used for specific mission profiles, such as surveillance, reconnaissance, and navigation. They can provide continuous coverage of the area and can be used for the early detection of intercontinental ballistic missile launches. Satellites can carry out both strategic and tactical operations. For example, satellites support strategic targeting by not only monitoring the development of weapons by the enemy but also pre-determining the deployment of military assets in strategic vantage points in the event of an armed conflict.
Further, several development projects will create potential market opportunities for command-and-control solutions to monitor these satellites. Hence, the focus on the local development of appropriate command and control systems is increasing. These developments are expected to lead to the growth of the global market during the forecast period.
Market Trends- Growing satellite-based telemetry applications
The need for satellite-based telemetry has grown along with the requirement for dependable telemetry infrastructure. Numerous municipal, economic, governmental, and military uses use satellite telemetry. It is used by researchers to track the movement of animals and birds on the Earth. Such tracking is done through the use of orbiting satellites. The satellite receives radio signals from transmitters attached to the target. The US also uses Space-Based Infrared System (SBIRS) reconnaissance satellites, which provide the US with strategic ballistic missile warning capabilities.
In addition, the US has established its Air Force Satellite Control Network, which oversees the operations of the US Air Force and other Department of Defense satellites, as well as launch and orbit tracking operations for its spacecraft. These systems have also been improved and modernized to ensure their operational readiness for wars. Thus, the growing satellite-based telemetry applications will drive the growth of the global market during the forecast period.
Market Challenge- High cost of satellite hardware and components
Since satellites must withstand the harsh conditions of the space environment, the development and manufacture of satellites present a series of challenges. In addition, there are cost-related challenges that are driven by security and certification requirements. It have become larger, more complex, and more expensive. Building such a complex machine requires a lot of resources and financial support to design, construct, launch, and monitor it. Some factors that drive the cost of satellites are the equipment and materials used to build them.
Moreover, running a satellite at a 36-MHz bandwidth will cost over USD 1.5 million a year. There are also other gadgets and equipment that must be built into the satellite for it to perform its intended function, and these can include computers, computer software, and cameras. Factors such as these will hinder the growth of the global market during the forecast period.
In the satellite industry, achieving extensive geographical coverage is paramount, influencing the choice of satellite type and orbital altitude for optimal performance. Additionally, considering payload capacity and compatibility with various communication bands is crucial in meeting diverse needs across end-user industries. Service providers offer a wide array of service offerings, tailored to specific market segments and demands. Market analysts conduct thorough market growth analysis and market research and growth, providing insights into industry trends and opportunities for strategic decision-making. By leveraging accurate market forecasting, satellite companies can anticipate market demands and position themselves for sustainable growth in an increasingly competitive landscape.
The market share growth of the civil segment will be significant during the forecast period. These are an integral part of any economy for the development of infrastructure for commercial companies, government agencies, and the telecom and space industries. It vary based on their frequency, orbit, and missions.
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The civil segment was the largest and was valued at USD 45.95 billion in 2018. Due to the increasing number of Internet services and mobile users, satellites are used for civilian applications such as communications, weather, and GPS-enabled navigation. Manufacturers of GPS receivers offer it to civilians, especially scientists and surveyors. Scientists eagerly use it's navigation signals for time and position, as GPS receivers give them access to accurate measurements for research and surveying. They are also used for civil aviation, which helps in providing the best possible navigational services overflight information region (FIR). Thus, the increasing demand for their services in the civil segment will drive the growth of the global market during the forecast period.
Based on type, the market has been segmented into large, medium satellite, and small satellite. The large segment will account for the largest share of this segment. The large size segment in the global market refers to the market for large-sized used for various purposes such as communications, Earth observations, weather monitoring, navigation, and scientific research. Government and military groups frequently deploy large satellites for surveillance and defensive objectives. Further, they are utilized for telecommunications, broadcasting, remote sensing, and scientific research by private businesses and organizations. Due to rising demand for communication services, expanding broadcasting networks, and rising demand for weather monitoring and Earth observation data, the global market, especially the large satellite category, is expanding significantly. The development of this segment is also being fueled by technological developments in satellite manufacturing and launch capabilities, which, in turn, will drive the growth of the global market during the forecast period.
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North America is estimated to contribute 38% 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. North America is an important market, with the US, Canada, and Mexico being the primary markets in the region for space programs. These countries have advanced infrastructures and are involved in various space programs. Agencies such as NASA and SpaceX develop new systems to meet the growing demand in the future.
Space agencies in the US have initiated several R&D projects and are investing heavily in the development of advanced military satellites for communication and surveillance. Factors like these will drive the demand, which, in turn, will drive the growth of the market in the region 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 satellite such as Optical Earth observation satellites, and Radar Earth observation satellites.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
AAC Clyde Space AB, Airbus SE, Ball Corp., EnduroSat, Eutelsat SA, Gilat Satellite Networks Ltd., Intelsat US LLC, Kongsberg Gruppen ASA, L3Harris Technologies Inc., Leidos Holdings Inc., Lockheed Martin Corp., Maxar Technologies Inc., Mitsubishi Electric Corp., Northrop Grumman Corp., OHB SE, Raytheon Technologies Corp., Safran SA, Sierra Nevada Corp., Space Exploration Technologies Corp., Terran Orbital Corp., Thales Group, and The Boeing Co.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Satellite Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.31% |
Market Growth 2024-2028 |
USD 14,526.87 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.94 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 38% |
Key countries |
US, China, Japan, Russia, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AAC Clyde Space AB, Airbus SE, Ball Corp., EnduroSat, Eutelsat SA, Gilat Satellite Networks Ltd., Intelsat US LLC, Kongsberg Gruppen ASA, L3Harris Technologies Inc., Leidos Holdings Inc., Lockheed Martin Corp., Maxar Technologies Inc., Mitsubishi Electric Corp., Northrop Grumman Corp., OHB SE, Raytheon Technologies Corp., Safran SA, Sierra Nevada Corp., Space Exploration Technologies Corp., Terran Orbital Corp., Thales Group, and The Boeing Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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