The satellite manufacturing and launch systems market is poised to register a CAGR of more than 3.5%, during the forecast period 2020-2025 according to Research and Markets.
Over the years, the business of space exploration has changed substantially, with private corporations joining governments in creating and launching rockets and satellites. The increasing investment in the space sector from private investors is expected to drive the market in the years to come.
The recent advent of reusable rockets is drastically cutting the cost of sending satellites into space, and the potential for mass production of satellites could slash those costs further, in the years to come.
Key Market Trends
The Military and Government Segment Recorded the Highest Market Share in 2019
Currently, the Military and Government segment has the highest revenue share in the market. Militaries across the world are strengthening their C4ISR systems that essentially need secure and robust communication channels, accessible from anywhere by the defense forces. The C4ISR system market is slated to grow, given the increasing demands for better security, control, and coordination. These factors are expected to enhance the need for military communication and ISR satellites during the forecast period. However, growth is projected to be higher in the commercial segment, due to the rising number of small satellite launches by private firms. The smallsat market has quickly expanded over the past five years, and is expected to experience a sustained expansion in the future. This trend is expected to give a significant boost to the commercial segment in the years to come.
The Market in Asia-Pacific is Expected to Grow with the Highest CAGR during the Forecast Period.
By Geography, North America registered the highest market share in 2019. The United States allocates the highest amount of money for space budget, when compared to any other country in the world. NASA's budget for fiscal year (FY) 2019 was USD 21.5 billion, which is the highest by any country for its space mission. Launch providers, like SpaceX, which are based in the United States, are also launching the satellites of other countries. However, the highest growth in the market is expected to be from the Asia Pacific region, mainly due to the increasing space launches from China and India. India announced that the Indian Space Research Organisation’s (ISRO) arm of commercial operations, the Antrix Corporation, clocked in INR 62.98 billion in revenue from launching 239 satellites over the last three years, and the revenues are constantly growing. India launched its Chandrayaan 2 mission in July 2019, The GSLV Mk-III carried Chandrayaan 2 to its designated orbit. This three-stage vehicle is India's most powerful launcher till date. In addition, China launched the highest number of rockets compared to any other countries in 2018, surpassing the number of rocket launches of the United States. In the upcoming years, the country plans to launch the world’s biggest space telescope, the world’s heaviest rocket, and a space station to rival the ISS. All these factors are expected to propel the growth of the region in the years to come.
Competitive Landscape
Northrop Grumman Corporation, ArianeGroup, Space Exploration Technologies Corp., Blue Origin, and Lockheed Martin Corporation are some of the prominent players in the market. The market is fragmented with many players venturing into the manufacturing of satellites and launch systems and sub-systems. Joint ventures between the major aerospace and defense players, like the Ariane group (a venture between Airbus and Safran), Thales Alenia Space (a Thales/Leonardo company), and United Launch Alliance (a joint venture of the companies Boeing and Lockheed Martin Corporation) are prominent in the market. The satellite manufacturing and launch systems market experienced growth in orbital launch attempts in the past 5 years, globally, and the forecast period might become one of the best growth phases for manufacturers, as well as launch service providers. The demand for small satellites are also on the rise, and this would be a key point of concentration for the satellite manufacturers to incorporate the necessary types of technologies in their product portfolio, so as to gain the attention of customers.
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