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The electric propulsion satellite market size is estimated to grow at a CAGR of 8.56% between 2022 and 2027 and the size of the market is forecast to increase by USD 8,534.23 million. The market's growth depends on several factors, such as the growing preference for hosted payload, cost-effective commercial launch vehicles, and the increasing use of electric propulsion satellites in military and defense applications.
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). It also includes an in-depth analysis of drivers, trends, and challenges.
Electric Propulsion Satellite Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the market's key drivers, trends, and challenges. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
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 global electric propulsion satellites market during the forecast period.
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. The electric propulsion 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 propulsion 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 electric propulsion satellite market during the forecast period.
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 electric propulsion technology market during the forecast period.
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 propulsion systems allow for prolonged surveillance, enhancing situational awareness and intelligence-gathering capabilities.
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The military segment was valued at USD 8,974.78 million in 2017 and continued to grow until 2021. 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.
Based on type, the market has been segmented into hybrid and all-electric. The hybrid segment will account for the largest share of this segment. Unlike all-electric propulsion, the use of hybrid propulsion is not a new concept. The combination of electric propulsion and chemical propulsion technology has been in use for the last couple of decades. However, with the growing concern over reducing the overall launching cost, it is expected that the adoption of hybrid propulsion technology will become more prominent. The implementation of hybrid propulsion technology will allow satellite launch contractors to launch multiple geostationary satellites using a single launch vehicle. In countries with emerging space stakeholders such as China and India, the use of hybrid propulsion is gaining acceptance. These trends are expected to propel the global hybrid segment of the global electric propulsion satellite market during the forecast period.
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APAC is estimated to contribute 39% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during 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.
In 2020, the electric propulsion satellite market in North America witnessed slow growth owing to the outbreak of COVID-19 which severely affected countries such as the US and Canada. However, in 2021, with social distancing norms in place, the resumption of the launch of satellites has been made possible by vaccination drives conducted by governments across the region., including those equipped with electric propulsion systems, which contribute to the recovery of the market in focus in the region. Such factors are expected to foster the growth of the regional electric propulsion satellite 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.
Accion Systems Inc.: The company offers electric propulsion satellites such as tiled ionic liquid electrospray and conventional electric propulsion systems.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Ad Astra Rocket Co., Aerojet Rocketdyne Holdings Inc., Airbus SE, Bellatrix Aerospace Pvt. Ltd, Busek Co. Inc., INVAP S.E., 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 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 electric propulsion satellite market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Electric Propulsion Satellite Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.56% |
Market growth 2023-2027 |
USD 8,534.23 million |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
8.27 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East, and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, India, Japan, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accion Systems Inc., Ad Astra Rocket Co., Aerojet Rocketdyne Holdings Inc., Airbus SE, Bellatrix Aerospace Pvt. Ltd, Busek Co. Inc., INVAP S.E., Lockheed Martin Corp., MIT AeroAstro, Northrop Grumman Corp., OHB System AG, Safran SA, Sitael S.p.A., Thales Group, The Boeing Co., and ThrustMe |
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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