Electric Propulsion Satellite Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Russia, India, Japan - Size and Forecast 2024-2028

Electric Propulsion Satellite Market Size 2024-2028

The electric propulsion satellite market size is forecast to increase by USD 10.88 billion at a CAGR of 9.83% between 2023 and 2028.  The market is experiencing robust growth, driven by the rising preference for hosted payload solutions and cost-effective commercial launch vehicles. Military and defense applications are increasingly adopting electric propulsion satellites due to their efficiency and versatility. This market evolution reflects a shift towards more sustainable and technologically advanced solutions, aligning with the growing demands of modern satellite operations. With electric propulsion technology at its core, this market is poised for significant expansion to meet the evolving needs of the aerospace industry. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.

Market Forecasting and Size

Market  Forecast 2024-2028

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Market Dynamics

In the market, eco-friendly solutions are leading the way for space exploration and Earth observation. With advanced electrothermal, electrostatic, and electromagnetic propulsion systems, satellites are now maneuvering more efficiently in low Earth orbit. Technologies like Short Wave Infrared (SWIR) and laser designation are enhancing precision in environmental studies and astronomy. Equipped with Altitude Control Systems (ACS) and Thermal Control Systems (TCS), these satellites ensure stable performance. Adoption rates are increasing, driven by defense applications, scientific research, and commercial end-users interested in space-based activities. Furthermore, innovations such as reusable launch vehicles and nitrous-oxide-based green propellants are reshaping the industry landscape. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the market's key drivers, trends, and challenges.  

Key Market Driver - Growing preference for hosted payload

In the hosted payload applications, the government or defense agency will place a smaller module on an enterprise satellite that operates independently and shall be given priority to the requirements of the government or defense agencies. However, such payload or module shares the same power supply and transponders that the commercial modules use. These approaches, with the aim of achieving cost savings and eliminating the need to build or put a specific satellite into service, are usually preferred by government agencies.

Moreover, such approaches also reduce the risk of launch delays, inadequate funding, and operational failures. Ensuring that contracts are flexible was the primary aim of these agreements. and rapid means for government agencies to host payloads on commercial satellites. The rising focus of space agencies on accommodating hosted payloads will boost the growth of the market during the forecast period.

Significant Market Trends - Increase in sustainable and green satellite operations

The approach of the satellite industry to operations is being influenced by the growing concern for environmental sustainability. Stakeholders recognize the need to reduce the carbon footprint and minimize the environmental impact of satellite missions. Sustainable and green satellite operations have become a priority to meet these environmental goals. These systems provide higher fuel efficiency compared with conventional chemical propulsion systems, contributing to a sustainable satellite operation. These systems consume less propellant, resulting in reduced emissions of harmful gases and particulate matter during satellite operations.

However, the higher efficiency translates into a smaller environmental footprint and supports the broader goal of reducing greenhouse gas emissions. Renewable energy sources are also used to generate power as part of the shift toward sustainable satellite operations. Satellites equipped with electric systems can integrate solar panels to harness the sun's energy, providing clean and renewable power for onboard systems. Such factors are expected to drive the growth of the global market during the forecast period.

Major Market Challenge - Design and manufacturing constraints

Satellite manufacturers are confronted with various challenges due to the necessity of protecting them from harsh space environments. The design and manufacturing of miniaturized satellites involve further challenges owing to their requirement for size and weight reduction and a high level of performance and reliability. 

However, along with the growth in demand for nano and microsatellites from the military and commercial sectors, these satellites also have to meet the high-reliability standards and longer mission life required for varied applications. Unlike conventional chemical-powered satellites, the introduction of all-electric propulsion cannot ensure an adequate thrust at the early stage. The choice of employing electric propulsion systems is very subjective to the perception of satellite development agencies or operators and may hinder the growth of the global market during the forecast period.

Market Segmentation

This report extensively covers market segmentation by application (military and commercial), type (hybrid and all-electric), and geography (North America, APAC, Europe, South America, and the Middle East and Africa). In the market, applications span various domains. These include Earth observation, vital for environmental studies and astronomy. Satellites in low Earth orbit, particularly small satellites, benefit from propulsion technologies like electrothermal, electrostatic, and electromagnetic propulsion. Systems such as Thermal Control, Electric Power, and Altitude Control are crucial. Maneuvering satellites efficiently ensures effective telemetry tracking and command. Defense applications also leverage these systems. The adoption rate is high, especially with eco-friendly options like nitrous-oxide-based green propellant. The market sees collaboration with entities like the Liquid Propulsion Systems Centre (LPSC), driving advancements in propulsion technology for satellite applications.

By Application 

The military segment will account for a major share of the market's growth during the forecast period. Electric propulsion satellites play a critical role in military surveillance and reconnaissance operations. Such satellites are capable of continuously monitoring critical areas, borders, and potential conflict zones. The extended mission lifetimes provided by electric systems allow for prolonged surveillance, enhancing situational awareness and intelligence-gathering capabilities. 

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The military segment was valued at USD 9.62 billion in 2018. The satellites are capable of providing real-time information exchange and coordination for military personnel, ensuring the reliability and stability of their communication channels. Compared to traditional chemical power systems, electric propulsion satellites offer a longer mission life. This extended endurance allows military forces to maintain persistent surveillance, communication, and reconnaissance capabilities over strategic areas.

Regional Analysis

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APAC is estimated to contribute 42% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Another region offering significant growth opportunities to vendors is North America. It dominates the global demand for satellite services, with the US being the region's major market for space-based programs, owing to its advanced infrastructures. Companies such as NASA and SpaceX operate in the US. These companies will be developing new systems to meet the increasing demand for smaller satellites in the future. Also, the growing demand from the military and defense organizations in the US and the development of low-cost satellites have gained significant importance in the region during the forecast period.

Key Companies & Market Insights

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.

Accion Systems Inc.: The company offers electric propulsion satellites such as tiled ionic liquid electrospray and conventional systems.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

Accion Systems Inc., Ad Astra Rocket Co., Airbus SE, Bellatrix Aerospace Pvt. Ltd., Busek Co. Inc., INVAP S.E., L3Harris Technologies Inc., Lockheed Martin Corp., MIT AeroAstro, Northrop Grumman Corp., OHB System AG, Safran SA, Sitael S.p.A., Thales Group, The Boeing Co., and ThrustMe 

Technavio market forecast the 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.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Application Outlook
  • Military
  • Commercial
• Type Outlook 
  • Hybrid
  • All-electric
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Argentina
    • Brazil

Market Analyst Overview

The market is witnessing significant growth, driven by advancements in space exploration and Earth observation technologies. Utilizing eco-friendly propulsion technologies such as Electrothermal propulsion, electrostatic propulsion, and electromagnetic propulsion, satellites operate efficiently in low Earth orbit. Small satellites equipped with laser designation technology and Short Wave Infrared (SWIR) systems facilitate environmental studies and astronomy with enhanced precision. Essential components like the Thermal Control System (TCS) and Electric Power System (EPS) ensure optimal satellite performance, while Altitude Control System (ACS) and telemetry tracking & command systems enable maneuvering satellites and its control. Flight software plays a crucial role in managing satellite operations, supporting maneuvers and data transmission.

As demand grows for these satellites, the market continues to innovate, offering sustainable solutions for global space exploration and observation endeavors. In the market, the adoption rate of these technologies is on the rise, particularly with advancements in systems developed by institutions like the Liquid Propulsion Systems Centre (LPSC). These systems are designed to operate efficiently even in combustion supporting atmosphere, ensuring optimal performance in various space-based activities. The market is advancing rapidly with innovations from key players like Starfish Space and their Otter Pup satellite, alongside government initiatives like the GEOKOMPSAT-3 satellites by agencies such as ISRO (Indian Space Research Organisation). Research, Development, Test, and Evaluation (RDT&E) efforts focus on enhancing structure & mechanisms and propulsion system for space-based activities like telecommunication, Earth-observation, and scientific research.

Adoption rates of Full Electric propulsion type and hybrid propulsion type, are rising among commercial end user and private players. Increased spending on space programs, coupled with grant for research and investment from organizations like DLR (German Aerospace Center), drives the development of reusable launch vehicles and innovative propulsion system such as solar electric propulsion and nitrous-oxide-based green propellant. Efforts in orbital debris mitigation, space debris tracking, and space traffic management ensure collision avoidance strategies and enhance space situational awareness globally.

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What are the Key Data Covered in this Electric Propulsion Satellite Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the electric propulsion satellite market between 2024 and 2028
• Precise estimation of the size of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across North America, APAC, Europe, South America, and Middle East and Africa
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth analysis of factors that will challenge the growth of market  companies

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