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The Satellite Manufacturing and Launch Market size is estimated to increase by USD 4,662.26 million between 2022 and 2027, and the size of the market is forecast to grow at a CAGR of 3.87%. The growth of the market depends on several factors, reduction in associative launch cost, rising demand for multirole satellites, and expanding the scope of space exploration.
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 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 global market growth during the forecast period.
Nanosatellites, or CubeSats, are a significant development in the global market. Small satellites, typically weighing less than 500 kilograms, 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 and 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 satellite 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 satellite segment was valued at USD 12,102.20 million in 2017 and continued to grow until 2021. 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 satellite 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 the aggressive delivery schedules for satellites, 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 36% 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.
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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 vendors, 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 involves the construction and launch of rockets and satellites, with telemetry broadcasting as a crucial aspect. Despite restraints analyzed through Porter's five forces analysis, the competitive intensity remains high among market players. Lockdown processes in respective countries have impacted the supply chain, delaying satellite equipment deliveries. However, satellite manufacturing companies are adapting to demand and supply patterns, integrating satellite payloads. Technologically advanced systems from private companies like SpaceX and government space agencies like NASA aim for cost-effective programs, including reusable satellite launch vehicles. New product launches and joint endeavors among aviation and defense players further drive market growth, focusing on commercial applications and research around orbital launches.
In the ever-evolving landscape of the systems, buyers seek reliable suppliers amidst delays in equipment deliveries and occasional suspensions, impacting cash flow. Integration of satellite payloads drives market trends analysis and future projections, influencing defense budgets and the adoption of new-age machinery. Cost-enhancive programs support operations amidst infrastructure costs and airspace restrictions. Lower Earth orbit constellation activities gather crucial data, necessitating efficient launch assembly systems for establishing communication and navigational input activities. Technologically advanced systems undergo evaluation, procurement, and operation and maintenance, with program costs scrutinized. Key players like the European Space Agency, Northrop Grumman Corporation, and Lockheed Martin Corporation collaborate in joint endeavors, leveraging expertise in satellite broadcasting, and nano, and micro-satellite systems. Future estimations highlight investment pockets in this dynamic market.
The 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.
Satellite Manufacturing and Launch Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.87% |
Market growth 2023-2027 |
USD 4,662.26 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.27 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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 Systems Corp., OHB SE, Raytheon Technologies 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, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market growth and trends 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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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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