Enjoy complimentary customisation on priority with our Enterprise License!
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.
For More Highlights About this Report, Download Free Sample in a Minute
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.
Get a glance at the market contribution of various segments Download the PDF Sample
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.
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.
For more insights on the market share of various regions Download PDF Sample now!
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.
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 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.
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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.