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The high-altitude pseudo satellites (HAPS) market size is forecast to increase by USD 36.3 million at a CAGR of 9.62% between 2023 and 2028. The escalating demand for high-capacity wireless services, particularly for "last mile" deliveries, presents challenges to telecommunication providers. The extensive deployment of base stations for adequate coverage incurs substantial costs. Satellite-based services face limitations in capacity and performance. High-altitude pseudo satellites (HAPS) have garnered interest for combining terrestrial and satellite advantages. HAPS promise cost-effective broadband services with efficient coverage, offering flexible deployment and emergency communication capabilities. Their potential to replace terrestrial masts and reduce operating costs is expected to drive growth in the global HAPS market.
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The use of renewable energy has become crucial to decrease dependence on fossil fuels, gas, and oil. There is a global need for relatively cheaper and obtainable energy resources to address the growing concerns of climate change. Furthermore, HAPS uses the energy stored in photovoltaic cells to push their electric propulsion units, simultaneously replenishing the charge of the solar arrays that are mounted on their wings, airframe, and stabilizers. These aerial platforms are even equipped with monitoring systems that regulate and monitor the use and temperature of each onboard cell in tandem.
Moreover, modern HAPS, such as the Zephyr, uses electric power from solar panels on its wings to sustain flight during daytime at altitudes above 70,000 feet. At night, the drone uses stored battery power and drops to around 50,000 feet till daybreak. It is still able to operate flawlessly well above clouds and bad weather, unaffected by regular air traffic. Thus, such factors and increasing investments in the R&D of photovoltaic technologies are expected to drive the growth of the market during the forecast period.
The global high-altitude pseudo satellites market players are coming up with new product launches along with new research development. For example, in July 2023, BAE Systems plc completed its first successful flight of its HAPS UAV PHASA-35 solar-powered drone into the stratosphere, reaching an altitude of over 66,000 ft.
Furthermore, in October 2021, Softbank Corp. acquired the HAPS patent from Google Loom. SoftBank Research Institute of Advanced Technology is researching and developing a telecommunication platform called HAPS to provide Internet connectivity from the stratosphere for commercial services. Thus, such developments are expected to drive the growth of the market during the forecast period.
The development cost of a high-altitude balloon for communications costs less in comparison with an airship or a LEO satellite. High-altitude balloons have limited capabilities in terms of platform reusability and coverage area, and they are not ideal for wide-area communications. Additionally, the maintenance cost of such a network has its challenges, driving the operational expenditure higher.
In addition, high-altitude pseudo satellite have had their fair share of mishaps in recent years, and such accidents could dent the reputation and viability of promising high-altitude products. For example, in August 2022, a high-altitude pseudo drone developed and flown by Airbus crashed outside Arizona. Thus, the high development costs may impede the market during the forecast period.
The UAVs segment will account for a major share of the market's growth during the forecast period.?High-altitude UAVs are primarily employed for aerial reconnaissance, battlefield management, and to alert against biological, chemical, and nuclear threats. High-altitude UAVs are very effective in risky missions and are finding increasing use in disaster management, search and rescue, communication, security, monitoring, and attack missions. Due to the operational superiority of high-altitude UAVs, high-altitude pseudo satellites market players are focusing on broadening the applications of this platform.
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The UAVs segment was valued at USD 33.04 million in 2018. One such achievement is the development of solar-powered high-altitude UAVs that can fly uninterruptedly in stratospheric zones. For example, in January 2022, Airbus SE announced its approval from the Spanish government for the Eurodrone program. For Airbus SE (Airbus) and the broader European aerospace industry, the development of Eurodrone is viewed as a "lighthouse" program. Thus, such factors are expected to drive the growth of the UAV segment of the global HAPS market during the forecast period.
Based on application, the market has been segmented into government services and commercial services. The government services segment will account for the largest share of this segment.?HAPS for government services includes military and security operations, environmental monitoring, weather forecasts, and space exploration applications. The Earth observation industry constantly evolves and expects seamless integration of new technologies, acquired modalities, and unconventional data sources. Furthermore, the government services segment is expected to grow at a significant rate due to the continuous need for enhanced military applications such as high-security communications systems and satellite power supplies. Thus, due to such factors, the use of HAPS has raised in the government services segment, which will thereby fuel the growth of the global HAPS market during the forecast period
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North America is estimated to contribute 64% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges expected to shape the high-altitude pseudo satellites market growth analysis during the forecast period. The North American aerospace industry is mature and largely supported by a robust infrastructure base in North America, especially the United States. Various technology start-ups are working closely with government agencies on alternative-powered satellite technologies to meet the growing demand for remote sensing and connectivity in both the defense and commercial sectors. In terms of demand and manufacturing, the US leads the world in the global satellite manufacturing and launch market.
Furthermore, increased surveillance and security applications have also increased the demand for durable high-altitude platforms in military operations. Additionally, significant developments have occurred on his HAPS platform over the past decade, while the Department of Defense (DoD) and the National Aeronautics and Space Administration (NASA) provide significant funding for various projects. Hence, such factors are expected to drive market growth in this 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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
AeroVironment Inc., AUGUR RosAeroSystems, BAE Systems Plc, CNH Industrial NV, CTT doo Beograd, Elbit Systems Ltd., ETL Systems Ltd., ILC Dover LP, NewSpace Research and Technologies Pvt. Ltd., Northrop Grumman Corp., SCEYE INC., SoftBank Corp., Stratospheric Platforms Ltd., Stratosyst s.r.o., TAO Transatmospheric Operations GmbH, Thales Group, The Boeing Co., UAVOS Inc., and Zero 2 Infinity S.L.
Technavio's market research and growth 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 High-Altitude Pseudo Satellites (HAPS) market is witnessing significant growth driven by various applications such as persistent aerial surveillance, communications relay, and atmospheric monitoring. Solar-powered drones offer long-endurance flights and are utilized for geospatial mapping, emergency response, and border security. They play a crucial role in civilian applications including climate research, agricultural surveillance, and wildlife conservation. HAPS also contribute to telecommunications infrastructure by providing connectivity to remote areas, facilitating emergency communications, and aiding disaster recovery efforts. With their persistent surveillance capabilities and wide-area coverage, HAPS serve as vital assets for surveillance operations, ensuring network redundancy and enhancing security measures. This market is propelled by the increasing demand for efficient and versatile unmanned aerial vehicles equipped with solar power generation and advanced persistent surveillance systems.
The market analysis and the report forecast market growth by revenue at global, regional & country levels and analyze the latest trends and growth opportunities from 2018 to 2028.
High-altitude Pseudo Satellites (HAPS) Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.62% |
Market Growth 2024-2028 |
USD 36.3 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.79 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 64% |
Key countries |
US, Japan, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AeroVironment Inc., Airbus SE, AUGUR RosAeroSystems, BAE Systems Plc, CNH Industrial NV, CTT doo Beograd, Elbit Systems Ltd., ETL Systems Ltd., ILC Dover LP, NewSpace Research and Technologies Pvt. Ltd., Northrop Grumman Corp., SCEYE INC., SoftBank Corp., Stratospheric Platforms Ltd., Stratosyst s.r.o., TAO Transatmospheric Operations GmbH, Thales Group, The Boeing Co., UAVOS Inc., and Zero 2 Infinity S.L. |
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, 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. |
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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 Technology
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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