The past year saw major traction in the global space sector from both the government and private sectors. As many governments have taken the initiative to use space as an essential asset for the national economy, satellite applications are making inroads in the space market.
Two major conferences held in Europe recently highlighted trends in new space. NewSpace Europe in Luxembourg and Space Tech Expo in Bremen, Germany. showcased some of the latest technological trends in the space and satellite market. It also brought together the space industry experts from different walks of life to discuss and expand Europe’s reach in the global commercial space market. Some of the key takeaways from these conferences are as follows:
New Space Applications
The New Space sector has kept the commercial ball rolling towards achieving a milestone for economically viable and affordable space solutions. But the most amount of companies entering the New Space sector are burning the midnight oil for the funding resources. This scenario is also suggesting that there is a need for equilibrium in some of the New Space applications such as communications, Internet of
Things (IoT), Geospatial solutions, etc. In the satellite IoT segment alone, there have been numerous companies registered in the past few years. OQ Technology, Kineis, Astrocast, Hiber, etc. are some of the new companies in the satellite IoT upstream market. While traditional players like Iridium, Inmarsat and Globalstar have already deployed IoT services in the market. On the same lines, Eutelsat is also planning a nanosatellite IoT constellation, set launch in between 2021 and 2022.
According to Quilty Research, currently, there are more than ten companies that are entering the satellite IoT market. And the increasing number of New Space companies is definitely going to make this market more competitive as well as tough to navigate for diverse opportunities. Though satellite IoT will be one of the game-changers for the satellite communications industry, the satellite players should also keep a close on the demand graph. Oversupply may even lead the exploration of new markets, but a thorough look at the need for the demand of the downstream market will create a sustainable sphere for the satellite IoT companies.
LEO vs. GEO vs. Small GEO
The satellite constellation race officially kick-started in 2019 with numerous launches of Starlink and OneWeb satellites. This has also made the low earth orbit (LEO) satellite business spinning its wheels to capture the satellite broadband customers. But meanwhile, as the traditional GEO satellites where thought to lose its grip on the communications market, the Small GEO satellite companies began to attract the investors in 2019. Astranis, Ovzon, and GapSat are some of the new Small GEO satellite operators with a launch plan in between 2021 and 2023. Although Hispasat launched its first Small GEO Hispasat 36W-1 satellite in January 2017, the satellite’s total weighed close to 2000 kgs. On the other hand, Astranis is launching a satellite that will weigh approximately 300 kgs. This drop in the overall weight of satellite is also going to reduce the launch cost as well as it will make satellite leasing prices more affordable than the traditional GEO satellites.
According to Euroconsult’s forecast, 8588 small satellites weighing approximately 1195 Kgs will be launched in 2028, of which 42% of the market will be driven by the communication satellites. Therefore, the future for Small GEO looks promising as the operators have to thrive on the existing infrastructure. But on the LEO side, the ground segment infrastructure will be crucial which will in-turn increase the overall investment of the company. Though LEO satellites have already left the ground, the LEO business is still yet to take off. Therefore, a reverse gear on GEO applied by the satellite operators by reincarnating the traditional GEO market with the Small GEO market might be one of the best solutions for the current market with respect to cost and flexibility.
Science and Technology
The European Space Agency’s (ESA) budget of EUR 14.4 billion for the next five years was announced on 28 Nov 2019. Though the news came after the wrap of both the conferences, the space community and various institutions around the European region gave a warm welcome for the increase in ESA’s five-year budget. One of the critical areas where the European space market can amplify its space technology innovation track is the research and development (R&D) activities.
The total budget allocated for Science and Technology is approximately EUR 1.6 billion. As the commercial satellite market is moving towards the small satellites, the R&D activities will be requiring substantial work to miniaturize the satellite components. For example, the traditional GEO satellite weighs more than 3000 Kgs, whereas the small GEO satellites will be developed between 100 Kg to 2000 Kgs. Therefore, to develop an innovative arch in space technology for satellite components, the R&D investment in science and technology by ESA might accelerate the upstream market growth.
Conclusion
The European space sector is on a progressive path with a stronger and diverse focus on the satellite market. This does give a positive vibe that though the future of LEO and Small GEO looks uncertain at the moment, consistent government support for space technology can help connect the dots for the commercial players. The increasing involvement of government and private institutions in Europe has already showcased some of the innovative programs such as Advanced Research in Telecommunications Systems (ARTES) program. The communications market is evolving, and data relay systems, as well as optical communications, are setting a new bar for the European satellite market.
From a regulatory aspect, the mega constellation satellite companies need to align with the new ITU regulations. In the recent World Radiocommunication Conference (WRC-19), the International Telecommunications Union (ITU) member states adopted a new regulatory procedure for the non-geostationary satellite (NGSO) systems. According to ITU, “These systems will have to deploy 10% of their constellation within two years after the end of the current regulatory period for bringing into use, 50% within five years and complete the deployment within seven years”. Therefore, the huge number of companies planning to launch LEO satellite constellation should also be aligned with new ITU regulation and accordingly design their business models.
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Omkar Nikam is correspondent of the Satellite Executive Briefing magazine based in Strasbourg, France. He is graduate of the International Space University. Apart from his academic and professional engagements in space activities, he also participates in voluntary science outreach programs. He can be reached at: omkar@satellitemarkets.com
