Satellite Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Japan, Russia, France - Size and Forecast 2024-2028

Satellite Market Size 2024-2028

The satellite market size is estimated to grow by USD 14.53 billion, accelerating at a CAGR of 3.31% between 2023 and 2028. The market's expansion hinges on various factors, notably the rising demand for satellite navigation equipment driven by technological advancements and expanding applications. Simultaneously, the widespread adoption of the internet is fueling connectivity needs, contributing significantly to market growth. Moreover, the surge in demand for compact satellites, driven by their versatility and cost-effectiveness, is a key growth driver. These trends underscore the importance of technological innovation and the growing role of space-based solutions in modern communication and navigation systems. As satellite technology continues to evolve, businesses and industries worldwide are increasingly relying on these advancements to meet their operational and strategic objectives.

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

Market Forecast 2024-2028

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Market Segmentation

By End-user

The market share growth of the civil segment will be significant during the forecast period. These are an integral part of any economy for the development of infrastructure for commercial companies, government agencies, and the telecom and space industries. It vary based on their frequency, orbit, and missions.

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The civil segment was the largest and was valued at USD 45.95 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-enabled navigation. Manufacturers of GPS receivers offer it to civilians, especially scientists and surveyors. Scientists eagerly use it's navigation signals for time and position, as GPS receivers give them access to accurate measurements for research and surveying. They are also used for civil aviation, which helps in providing the best possible navigational services overflight information region (FIR). Thus, the increasing demand for their services in the civil segment will drive the growth of the global market during the forecast period.

By Type

Based on type, the market has been segmented into large, medium satellite, and small satellite. The large segment will account for the largest share of this segment. The large size segment in the global market refers to the market for large-sized used for various purposes such as communications, Earth observations, weather monitoring, navigation, and scientific research. Government and military groups frequently deploy large satellites for surveillance and defensive objectives. Further, they are utilized for telecommunications, broadcasting, remote sensing, and scientific research by private businesses and organizations. Due to rising demand for communication services, expanding broadcasting networks, and rising demand for weather monitoring and Earth observation data, the global market, especially the large satellite category, is expanding significantly. The development of this segment is also being fueled by technological developments in satellite manufacturing and launch capabilities, which, in turn, will drive the growth of the global market during the forecast period.

By Region

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North America is estimated to contribute 38% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. North America is an important market, 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 in the future.

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 like these will drive the demand, which, in turn, will drive the growth of the market in the region during the forecast period.

Market Dynamics

The market is driven by the increasing demand for communication and internet connectivity services facilitated by artificial satellites. High-throughput satellites are a notable trend, addressing the digital divide and enabling satellite-based internet services. Challenges include navigating government regulations governing space data and ensuring satellite data transmission reliability. Space exploration missions and emerging mega-constellations like Starlink satellites depict the market's dynamic landscape. Earth observation service providers and communication service providers are pivotal in meeting diverse application areas, from navigation to video distribution. The Market is a multifaceted industry with diverse application areas and technological advancements driving its segmentation. Artificial satellites play a crucial role in various domains such as communication, earth observation, navigation, and scientific research. They operate in different orbits including LEO (Low Earth Orbit), enabling tasks like satellite imaging and internet connectivity through satellite-based internet services and voice communications.

Key Market Driver - Accelerating demand for satellite navigation equipment

Satellites are primarily used for specific mission profiles, such as surveillance, reconnaissance, and navigation. They can provide continuous coverage of the area and can be used for the early detection of intercontinental ballistic missile launches. Satellites can carry out both strategic and tactical operations. For example, satellites support strategic targeting by not only monitoring the development of weapons by the enemy but also pre-determining the deployment of military assets in strategic vantage points in the event of an armed conflict. 

Further, several development projects will create potential market opportunities for command-and-control solutions to monitor these satellites. Hence, the focus on the local development of appropriate command and control systems is increasing. These developments are expected to lead to the growth of the global market during the forecast period. 

Significant Market Trends - Growing satellite-based telemetry applications

The need for satellite-based telemetry has grown along with the requirement for dependable telemetry infrastructure. Numerous municipal, economic, governmental, and military uses use satellite telemetry. It is used by researchers to track the movement of animals and birds on the Earth. Such tracking is done through the use of orbiting satellites. The satellite receives radio signals from transmitters attached to the target. The US also uses Space-Based Infrared System (SBIRS) reconnaissance satellites, which provide the US with strategic ballistic missile warning capabilities. 

In addition, the US has established its Air Force Satellite Control Network, which oversees the operations of the US Air Force and other Department of Defense satellites, as well as launch and orbit tracking operations for its spacecraft. These systems have also been improved and modernized to ensure their operational readiness for wars. Thus, the growing satellite-based earth observation and telemetry applications, including those managed by the Air Force Satellite Control Network, will drive the growth of the global market during the forecast period. These advancements in satellite-based telemetry enhance communication, navigation, and data collection capabilities, supporting various applications such as environmental monitoring, disaster management, and scientific research.

 Major Market Challenge - High cost of satellite hardware and components

Since satellites must withstand the harsh conditions of the space environment, the development and manufacture of satellites present a series of challenges. In addition, there are cost-related challenges that are driven by security and certification requirements. It have become larger, more complex, and more expensive. Building such a complex machine requires a lot of resources and financial support to design, construct, launch, and monitor it. Some factors that drive the cost of satellites are the equipment and materials used to build them.

Moreover, running a satellite at a 36-MHz bandwidth will cost over USD 1.5 million a year. There are also other gadgets and equipment that must be built into the satellite for it to perform its intended function, and these can include computers, computer software, and cameras. Factors such as these will hinder the growth of the global market during the forecast period.

Who are the Major 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.

Airbus SE - The company offers satellites such as Optical Earth observation satellites, and Radar Earth observation satellites. 

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

AAC Clyde Space AB, Airbus SE, Ball Corp., EnduroSat, Eutelsat SA, Gilat Satellite Networks Ltd., Intelsat US LLC, Kongsberg Gruppen ASA, L3Harris Technologies Inc., Leidos Holdings Inc., Lockheed Martin Corp., Maxar Technologies Inc., Mitsubishi Electric Corp., Northrop Grumman Corp., OHB SE, Raytheon Technologies Corp., Safran SA, Sierra Nevada Corp., Space Exploration Technologies Corp., Terran Orbital Corp., Thales Group, and The Boeing Co. 

Technavio 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.  

Segment Overview

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.

• End-user Outlook 
  • Civil
  • Defense

• Type Outlook 
  • Large
  • medium satellite
  • Small satellite

• 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

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Market Analyst Overview

The market is experiencing significant growth driven by various factors. Artificial satellites play a crucial role, orbiting Earth and facilitating a wide range of services. LEO satellites in particular are gaining traction due to their agility and efficiency in providing services like satellite imaging, internet connectivity, and voice communications. This has led to the expansion of satellite services and the emergence of satellite-based internet services, which are essential in bridging the digital divide by offering connectivity to remote areas. Moreover, the development of high-throughput satellites has revolutionized the market, enabling faster data transmission and supporting applications like space exploration missions and satellite-based warfare. Moreover, the rise of small satellites and advancements in satellite data transmission are driving innovation and market diversification. However, the Market faces challenges such as government regulations and space data management.

Nevertheless, the future looks promising with growing applications across various sectors. Communication service providers, Earth observation service providers, and space-focused firms are actively participating in the market, offering services for televisions, video distribution, internet access, and digital television. Furthermore, key trends include the adoption of DTH services, advancements in satellite receivers, and the growth of high-throughput satellites (HTS). Additionally, innovations like 3D-printed satellite parts are revolutionizing the aerospace and defense industries. Emerging players like OneWeb and Amazon's Project Kuiper are also shaping the landscape, contributing to the diversity of satellite types such as nanosatellites, microsatellites, and minisatellites. In terms of applications, Earth observation and remote sensing, direct broadcast, mapping and navigation, weather forecasting, surveillance and security, and GPS navigation satellites are driving market expansion and technological advancements in the Market.

Moreover, the market is an ever-evolving domain encompassing a wide array of technologies and services. Satellites operate in various orbits, each serving different application areas. The orbit type can range from low Earth orbit (LEO) to geostationary orbit (GEO), catering to diverse needs such as satellite-based internet services, communication, and earth observation. The two types of satellite include mini satellite and micro Satellite. One notable trend in the industry is the emergence of mega constellations like Starlink satellites, launched by satellite enterprises to provide global satellite-based internet connectivity. This trend reflects the growing demand for ubiquitous internet access and connectivity for IoT devices. Within the market, high-throughput satellites are gaining prominence for their ability to bridge the digital divide and provide enhanced internet access. These satellites support a range of space exploration missions and are instrumental in satellite data transmission for both civilian and government applications, adhering to government regulations concerning space data usage. By leveraging accurate market forecasting, satellite companies can anticipate market demands and position themselves for sustainable growth in an increasingly competitive landscape.

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What are the Key Data Covered in the Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, Middle East and Africa, and South America
• A thorough market growth and forecasting analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market report analysis of factors that will challenge the growth of the market companies

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