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The satellite propulsion system market is estimated to grow at a CAGR of 7.72% between 2022 and 2027. The market size is forecast to increase by USD 12,320.9 million. The growth of the market depends on several factors, including emergence of low-cost satellites, launch of cost-effective solutions, and development of sustainable space launch vehicles.
This satellite propulsion system market report extensively covers market segmentation by type (chemical propulsion, hybrid propulsion, and all-electric propulsion), application (MEO satellite, GEO satellite, and LEO satellite), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The emergence of low-cost satellites is notably driving the market growth, although factors such as insufficient thrust generation with all-electric propulsion systems may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The emergence of low-cost satellites is notably driving the market growth. The satellite systems domain is witnessing a transformation with the use of new-generation and reusable launch vehicles. Several countries have emphasized on launching innovative, cost-effective satellites in recent years. For instance, in January 2020, the Indian Space Research Organization (ISRO) announced its plan to launch low-cost satellite launch vehicles. The organization has been emphasizing on re-engineering and re-designing space vehicles to decrease the cost of satellite launches. In the same year, India's Reusable Launch Vehicle-Technology Demonstrator (RLV-TD) was flight-tested successfully.
Furthermore, SpaceX has been putting consistent effort toward the development of a fully reusable space launch vehicle for use in multiple satellite launch missions. This will significantly reduce the satellite launch cost further and create new opportunities for low-cost satellite-based services utilizing the constellations of nano and microsatellites.
Propulsion by inert gases is one of the key trends in the market. Xenon is a very rare gaseous element found on Earth. Air Liquide, which is one of the key Xenon suppliers, utilizes proprietary technologies to extract the element from the air and permits diversified sourcing methodologies to ensure a sustainable supply. The company utilizes many advanced analytical equipments to generate customer-specific Xenon. This ranges from standard to ultra-high purity standards, which are utilized across the industrial, medical, electronics, and space sectors.
Xenon is favorable for electric propulsion in satellites. This can be attributed to its density and potential for ionization and inertness. High-purity Xenon finds application as a propellant for functions such as satellite orbit raising and station-keeping. The electric engines use the energy produced by the solar panels of satellites to eject a gas (usually Xenon), which is channelized to generate thrust. The all-electric engines drive the load capacity of satellites by almost 50%, economizing the launching cost significantly. Technavio expects over 30% of the satellite market to use Xenon-driven electric propulsion technology in the coming years.
Insufficient thrust generation with all-electric propulsion systems may impede the market growth. The rising demand for nano and microsatellites from sectors such as civil, military, and commercial is making it critical for these satellites to meet high-reliability standards and longer mission life. The all-electric propulsion system, which generally powers small and low-cost satellites, offers many advantages compared to the conventional chemical propulsion system. However, the former faces challenges such as withstanding satellite launch and space exposure (indicating severe surrounding parameters). As reported during the launch of two electric-powered satellites, the all-electric propulsion system failed to provide enough thrust at the initial satellite launch stage compared to other chemical fuels. Hence, it takes more time for electrically propelled satellites to generate the right amount of thrust for them to properly adjust their positions in orbit. For example, the Xenon-ion propulsion system generates around 0.165 N thrust, whereas conventional chemical fuels' thrust is about 10-20 N. Hence, satellite manufacturers and operators will face challenges during the forecast period due to the use of electric propulsion systems.
The market report includes the adoption lifecycle of the market, 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 growth strategies.
Global Satellite Propulsion System Market Customer Landscape
Vendors 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 satellite propulsion systems such as all-electric satellites and satellite-on-station maneuvers. It is also involved in manufacturing aircraft for passenger airliners.
The research report also includes a detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the chemical propulsion segment will be significant during the forecast period. Chemical propulsion systems, which are the traditionally used propulsion systems, carry a significant quantity of fuel for satellite missions.
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The chemical propulsion segment was valued at USD 9,137.62 million in 2017 and continued to grow until 2021. As chemical propulsion systems carry a substantial amount of fuel for satellite missions, they have traditionally become a popular choice. This is not possible with nano and microsatellite designs. Besides, once started, the propellant used in such solid propellant propulsion systems cannot be stopped or restarted, hence requiring the use of multiple stages to achieve more than one burn. Moreover, it further increases the weight and limits the payload-carrying capacity of satellites.
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North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The global demand for satellite systems is dominated by North America, with the US, Canada, and Mexico being the major markets for space-based programs. These countries have advanced infrastructures, coupled with their involvement in various space programs. For instance, US-based companies, namely the National Aeronautics and Space Administration (NASA) and SpaceX, are focusing on launching new systems that can be utilized for multiple satellite launch missions and catering to the increasing demand for satellites in the future.
The civilian space sector in the US, directed by NASA, is responsible for the maintenance of four primary activities. They include aeronautics research, exploration systems, science, and space operations. As the country is leading the global demand for commercial satellite services, the sector has witnessed many developments, investments, and satellite programs. These have led to consistent year-over-year (YoY) growth in the country and steady progress of the market. Moreover, the initiation of many satellite programs in the region is expected to accelerate the integration of electric propulsion technologies, thereby boosting the payload-carrying capacity of individual satellites further. This, in turn, is anticipated to drive the integration of these satellites with lightweight electric or hybrid propulsion technologies instead of conventional chemical propulsion systems.
In 2020, the COVID-19 pandemic had a significant impact on the satellite industry in the region. The availability of a limited workforce delayed the completion of certain projects. Moreover, other companies shut down the production of satellites completely. However, the market expanded significantly post-2021, in line with various governments seeking to hike their budgets for new space projects. This factor will positively impact the growth of the global satellite propulsion system market during the forecast period.
The satellite propulsion system market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the satellite propulsion system market as a part of the global industrial machinery market, which covers companies engaged in manufacturing industrial machinery and components such as presses, machine tools, compressors, pollution control equipment, elevators, escalators, insulators, pumps, roller bearings, and other metal fabrications. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Technavio calculates the global industrial machinery market size based on combined revenue generated by manufacturers of machinery and components used in the industrial environment.
Growth of the global industrial machinery market will be driven by factors such as the increasing industrial output, leading to capacity additions in the process and discrete industries; the ease of operability of industrial machines; and the implementation of autonomous and robotics in industrial manufacturing.
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Satellite Propulsion System Market Scope |
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Report Coverage |
Details |
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Page number |
174 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.72% |
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Market growth 2023-2027 |
USD 12,320.9 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
7.5 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 32% |
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Key countries |
US, China, Japan, UK, and Russia |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Airbus SE, ArianeGroup, CU Aerospace, ESCO Technologies Inc., Eutelsat SA, Hispasat SA, IHI Corp., Inmarsat Global Ltd., Moog Inc., Northrop Grumman Systems Corp., OHB SE, Rafael Advanced Defense Systems Ltd., Safran SA, SES SA, SKY Perfect JSAT Holdings Inc., Starfish Space, Telesat Corp., Thaicom Public Co. Ltd., Thales Group, and Intelsat US LLC |
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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. |
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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.
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 Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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