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The Low Earth Orbit satellites market size is projected to increase by USD 9.76 billion at a CAGR of 18.18% between 2023 and 2028. The LEO satellite market is experiencing significant growth, driven by the rising demand for earth observation applications and satellite-based telemetry services. The earth observation sector is witnessing increased adoption due to its ability to provide real-time data for various industries, including agriculture, forestry, and environmental monitoring. Additionally, the growing trend of IoT and M2M communication is fueling the demand for satellite-based telemetry applications, enabling remote monitoring and control of devices and systems. However, the market faces challenges such as stringent government regulations and the high cost of launching and operating Leo satellites. Despite these challenges, the market is expected to continue its growth trajectory, driven by technological advancements and increasing demand for satellite-based services. LEO satellites orbit the Earth at altitudes between 200 and 2,000 kilometers and are used for commercial satellite imaging, surveillance, military reconnaissance, and communication. Market growth is driven by increasing demand for earth observation, cost-effective deployment solutions via micro and nanosatellites, and the swift development and deployment of LEO satellites.
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The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies including Airbus SE, Blue Origin Enterprises LP, GomSpace AS, Honeywell International Inc., Inmarsat Global Ltd., Israel Aerospace Industries Ltd., Kepler Communications Inc., L3Harris Technologies Inc., Lockheed Martin Corp., Maxar Technologies Inc., Northrop Grumman Systems Corp., OHB SE, OneWeb Holdings Ltd., Raytheon Technologies Corp., Sierra Nevada Corp., Space Exploration Technologies Corp., Telesat Corp., Thales, The Boeing Co., and BAE Systems Plc. Additionally, Airbus SE provides a prominent offering in the form of the Arrow S150, a LEO satellite.
The market share growth by the Commercial Use segment will be significant during the forecast period. The small satellite is also called a nanosatellite. Small satellites for commercial applications are used for space observation programs, interplanetary missions, systems testing in orbit, or biomedical research. They also represent a gateway to developing space programs for countries that have not yet joined the space race. Nanosatellites vary in size and cost depending on their use. They can be small enough to fit in the palm.
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The Commercial Use segment was the largest and was valued at USD 2.37 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 enable navigation. Manufacturers of GPS receivers offer it to civilians, especially scientists and surveyors. Scientists eagerly use satellite navigation signals for time and position, as GPS receivers give them access to accurate measurements for research and surveying. Satellites are also used for civil aviation, which helps in providing the best possible navigational services overflight information region (FIR). Such factors are expected to drive the growth of the small satellite segment of the market during the forecast period.
LEO satellites for commercial applications are used for earth observation programs and communication. LEO satellites vary in size and cost depending on the use. The LEO constellation architecture, which was revived five years ago by OneWeb, SpaceX, and a variety of other partners, is helping to reimagine satellite broadband. A lower cost structure and improved performance capability compared with traditional geostationary satellites that operate at far higher altitudes have been the foundation for momentum and LEO satellites market adoption. The global Internet divide, weak broadband in rural parts of higher-income countries, and an unfavourable cost/benefit analysis for land-based network growth all continue to fuel this demand. These two problems may be improved by the LEO constellation strategy. We evaluate the effects on connectivity and the conflicting strategies of retail versus wholesale since commercial launches are soon to occur. Such developments in the communication use of LEO satellites are expected to drive the growth of the market during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the low earth orbit satellites market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. North America is an important market for satellites, 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 for satellites in the future. The demand for satellites from the civil sector has increased in the US, especially for navigation, communications, and location-based services (LBS). The US government civil space sector is led by NASA, which is responsible for maintaining four main activities: aeronautical research, exploration systems, science, and space operations.
In addition, Numerous developments, investments, and satellite programs have resulted in the constant growth of the low earth orbit satellites market in the country. The use of LEO 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. In addition, 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 such as these will drive the demand for LEO satellites in the region during the forecast period.
The market is experiencing robust growth driven by several key drivers and trends. One significant driver is the increasing demand for satellite-based services such as satellite tracking, imaging, and communication, driven by the expanding space industry and the growing need for advanced Earth observation and remote sensing capabilities. The deployment of satellite constellations, facilitated by advancements in satellite manufacturing and propulsion technologies, is another driving force in the market. These constellations offer global coverage and enhanced capabilities for various applications, including satellite internet and space exploration. Furthermore, the need for space debris mitigation and satellite operations optimization is driving innovation in spacecraft design, satellite components, and ground stations. Manufacturers are focusing on developing efficient propulsion systems and satellite payloads to ensure reliable and sustainable operations in space. A prominent trend in the market is the emergence of satellite internet services, which provide high-speed connectivity to remote areas globally. This trend is fueling the deployment of satellite constellations dedicated to broadband internet coverage, driving market growth and competition among satellite operators. Additionally, the increasing focus on Earth observation and remote sensing applications, such as environmental monitoring and disaster management, is driving the demand for advanced satellite imaging and data transmission capabilities. Overall, the LEO Satellites Market is poised for continued growth driven by the convergence of technological innovation, increasing demand for satellite-based services, and the growing significance of space exploration and Earth observation initiatives.
Rising demand for earth observation-related applications is notably driving market growth. The earth observation industry constantly evolves and expects seamless integration of new technologies, acquired modalities, and unconventional data sources. The demand for satellite-based earth monitoring to address problems such as climate change and disasters. The big earth observation data have gradually promoted the development of global industries, research institutions, and application sectors, which has had a profound impact on the study of the Earth system contributing to human activities, environmental monitoring, and climate changes, and provided abundant data resource for the construction of digital Earth.
Moreover, earth observation satellites are being used to tackle 21st-century challenges such as climate change, resource management, and disaster mitigation. Due to such wide applications of earth observation satellites, their use has been increased, thereby, fueling the growth of the market. In January 2020, Virgin Orbit signed an agreement with ImageSat International (ISI) to develop an end-to-end responsive space service focused on national security customers. Such factors are expected to drive the growth of the market during the forecast period.
Growing satellite-based telemetry applications is an emerging trend shaping market growth. With an increase in the demand for reliable telemetry infrastructure, the demand for satellite-based telemetry has also increased. Satellite telemetry is used for various civil, commercial, government, and military applications. It is used by researchers to track the movement of animals and birds on the Earth. Such tracking is done using orbiting satellites. The satellite receives radio signals from transmitters attached to the target. Satellite telemetry is also widely used for defense and military applications. For example, the US uses satellite telemetry to provide satellite tracking, telemetry, and commands to its relevant users through various satellite ground antennas located in various locations around the world.
Additionally, the US established its Air Force Satellite Control Network in 1980, which oversees the operations of the US Air Force and other Department of Defense satellites, as well as satellite launch and orbit tracking operations for its spacecraft. In 2020, AFSCN Network Edge Transport System (ANETS) program winner Kratos Defense and Security Solutions, Inc., a provider of National Security Solutions, said that it had been awarded a USD 4.9 million contract to update the systems and infrastructure that link the AFSCN facilities. These systems have also been improved and modernized to ensure their operational readiness for wars. Such factors are expected to drive the growth of the market during the forecast period.
Stringent government regulations are a significant challenge hindering market growth. Several space laws hinder the growth of the LEO satellites market. The US has the most robust and detailed national space law and regulatory regime addressing the space activities of any nation. Many nations have modeled their laws on those of the US. The US is a party to the four principal UN space treaties: the Outer Space Treaty, the Agreement on the Rescue and Return of Astronauts, the Liability Convention, and the Convention on Registration of Objects Launched into Outer Space. The US is not a signatory or party to the Moon Agreement.
Moreover, space activities of the UK entities are currently governed by the Outer Space Act 1986 (OSA 1986), which requires licenses for an overseas launch of a satellite or operating a satellite in orbit. Since 2018, the new regulatory regime had come into place; the OSA 1986 will continue to regulate the launches and the operation of satellites from facilities outside the UK. Such stringent government regulations are expected to hinder the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
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.
Blue Origin Enterprises LP - The company offers LEO satellite namely FUGRO Spacestar.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market is driven by the increasing demand for LEO satellite systems, known for their versatility, advanced mechanics, and ease of assembly and launch. Satellite data service providers, small sat service providers, and remote sensing service providers leverage these systems for various applications. Technical service providers and investors are keen on the market's growth, particularly due to the efficiency and low-latency telecommunications offered by the Low Earth Orbit (LEO) constellation compared to the Geostationary (GEO) satellite constellation. LEO navigation augmentation enhances Internet of Things (IoT) devices, and the liquid fuel propulsion system ensures optimal mass and propulsion system efficiency. The market's expansion is further supported by advancements in telecommunications and the overall efficiency of LEO satellite systems.
Moreover, the market is experiencing rapid growth due to the mass production and short lifecycles of small satellites, which support a range of applications. Enhanced manufacturing processes and operations ensure that LEO-based services meet the rising satellite broadband capacity demand. Import-export regulations, orders, and delivery schedules are critical for efficient manufacturing operations. LEO constellations, alongside MEO systems, facilitate satellite-enabled communication and enhance defense and surveillance capabilities for armed forces. The market also emphasizes the launch and reentry of satellites, spectrum management, and on-orbit activities like rendezvous and proximity operations. Space Situational Awareness (SSA), RF mapping, and space optical communications using laser beams are vital. Policies and regulations, international community agreements, and programs like the Artemis Program drive advancements, while alternate power-sharing technologies boost satellite type versatility.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.18% |
Market growth 2024-2028 |
USD 9.76 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.64 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 35% |
Key countries |
US, Germany, UK, China, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus SE, BAE Systems Plc, Blue Origin Enterprises LP, GomSpace Group AB, Honeywell International Inc., Inmarsat Global Ltd., Israel Aerospace Industries Ltd., Kepler Communications Inc., L3Harris Technologies Inc., Lockheed Martin Corp., Maxar Technologies Inc., Northrop Grumman Corp., OHB SE, OneWeb Holdings Ltd., RTX Corp., Sierra Nevada Corp., Space Exploration Technologies Corp., Telesat Corp., Thales Group, and The Boeing Co. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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 End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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