Low Earth Orbit (LEO) Satellites Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, Canada, China, Germany, UK - Size and Forecast 2023-2027

Low Earth Orbit (LEO) Satellites Market Forecast 2023-2027

The Low Earth Orbit (LEO) Satellites Market size is projected to increase by USD 7.13 billion, at a CAGR of 15.92% between 2022 and 2027. The market's growth rate hinges on various factors, including increasing demand for earth observation-related applications, cost-effective deployment solutions facilitated by micro and nanosatellites, and the swift development and deployment of Low Earth Orbit (LEO) satellites. LEO satellites, which orbit the Earth at altitudes lower than geosynchronous satellites, typically range between 2,000 and 200 kilometers above the planet's surface. These satellites, often utilized for imaging, surveillance, military reconnaissance, and communication purposes, offer advantages such as quicker orbital cycles and a smaller communication footprint compared to higher-altitude satellites.

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 Low Earth Orbit (LEO) satellite.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

Market Segmentation By Type

The market share growth by the small satellite segment will be significant during the forecast period. The small satellite is also called a nanosatellite. Small LEO 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 small satellite segment was the largest and was valued at USD 1.75 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.

Market Segmentation By End-user

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.

Regional Overview

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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 an 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.

Market Dynamics and Customer Landscape

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.

Key Market Driver

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.

Significant Market Trends

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.

Major Market Restrain

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.

Market Customer Landscape

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

Low Earth Orbit (LEO) Satellites Market Companies 

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.

Segment Overview

The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.

• Type Outlook
  • Small satellite
  • Medium satellite
  • Large satellite
  • Cube satellite

• End-user Outlook
  • Commercial use
  • Government and military use
  • Others

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing significant growth driven by advancements in space technology and the increasing demand for satellite communication services. LEO satellites, characterized by their proximity to Earth's surface, offer advantages such as low latency and high-speed satellite connectivity. Satellite deployment and constellation deployment have become more efficient with improved satellite propulsion systems and satellite deployment systems. Space missions focused on LEO satellites are enhancing satellite networks and connectivity worldwide. Orbital dynamics play a crucial role in optimizing satellite deployment and ensuring efficient satellite data transmission. Satellite ground stations equipped with satellite antennas and satellite receivers facilitate satellite communication and control, further bolstering the LEO satellite market's expansion.

The market is witnessing significant growth driven by advancements in satellite constellation deployment, satellite transponders, satellite sensors, and satellite subsystems. Cutting-edge satellite power systems and satellite ground control technologies enhance satellite performance. Additionally, satellite remote control capabilities optimize satellite operations. With the increasing demand for satellite-based services, Leo satellites offer efficient solutions for various applications such as communication, remote sensing, and navigation. As technology continues to evolve, the Leo Satellite Market is expected to expand further, offering improved connectivity and coverage for a wide range of industries and applications.

Leo Satellite MarketScope
Report Coverage	Details
Page number	165
Base year	2022
Historic period	2017-2022
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 15.92%
Market growth 2023-2027	USD 7.13 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	14.67
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 35%
Key countries	US, Canada, China, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	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
Market dynamics	Parent market trends and 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 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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What are the Key Data Covered in this Leo Satellite Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2023 and 2027
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, Middle East and Africa, and South America
• 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 Industry companies

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