Leo Satellite Market size is set to grow by USD 7.13 billion from 2023-2027, Rising demand for earth observation-related applications boost the market, Technavio

NEW YORK, July 17, 2024 /PRNewswire/ — The global leo satellite market size is estimated to grow by USD 7.13 billion from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of  15.92%  during the forecast period. Rising demand for earth observation-related applications is driving market growth, with a trend towards growing satellite-based telemetry applications. However, stringent government regulations  poses a challenge. Key market players include 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.

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Market Driver

The demand for satellite-based telemetry is on the rise due to the growing need for reliable telemetry infrastructure. This technology is utilized in various civil, commercial, government, and military applications. For instance, researchers employ satellite telemetry to track animals and birds on Earth using orbiting satellites. By receiving radio signals from transmitters attached to the targets, researchers obtain updated information on the target’s location with every move. The distance between the transmitter and the satellite is calculated using the signal, allowing the target’s location on the ground to be determined geometrically. Sensors added to the transmitter can also provide data on temperature, depth, and light. Satellite telemetry is extensively used in defense and military applications. The US employs it to provide satellite tracking, telemetry, and commands to its users via ground antennas worldwide. The US Space-Based Infrared System (SBIRS) reconnaissance satellites offer strategic ballistic missile warning capabilities, enhanced with dual-band telemetry and tracking and communication capabilities. The US Air Force Satellite Control Network, established in 1980, manages the operations of US Air Force and other Department of Defense satellites, as well as launch and orbit tracking for spacecraft. In 2020, Kratos Defense and Security Solutions, a national security solutions provider, was awarded a USD4.9 million contract to modernize the systems and infrastructure connecting AFSCN facilities, ensuring their operational readiness for potential conflicts. These factors are anticipated to fuel the expansion of the global LEO satellite market during the forecast period. 

The Leo Satellite Market is experiencing significant trends in propulsion systems, with a focus on liquid propulsion systems offering high thrust and specific impulse capabilities. Liquid fuels like hydrazine and nitrogen tetroxide are popular choices for precise orbital maneuvers, providing mission flexibility. Electric propulsion, such as ion and Hall-effect thrusters, offer fuel efficiency and extended mission lifetimes. Gas-based propulsion systems, including cold and warm gas thrusters, use compressed gases like nitrogen and xenon. These advancements enable high-speed internet and communication services in LEO satellites, improving operational efficiency for various applications, including imaging, connectivity services, communications satellites, military reconnaissance, and more. The mass properties of satellites are also crucial, with ballasting and solar panels optimizing fuel usage during launch. Launch vehicles, such as rockets, play a vital role in delivering large and medium-sized satellites to LEO orbit, ensuring efficient fuel usage and minimizing propagation delay from Earth’s surface. 

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Market Challenges

• The Leo satellite market faces regulatory challenges due to various international space laws. The US, with its comprehensive national space law and regulatory regime, sets a precedent for many nations. The US is a party to four UN space treaties, including the Outer Space Treaty, Agreement on the Rescue and Return of Astronauts, Liability Convention, and Convention on Registration of Objects Launched into Outer Space. The UK’s Space Industry Act 2018 (SIA 2018) is a new regulatory regime that governs UK-based space activities, such as launches, returns, operation of a satellite in orbit, operation of a spaceport, and the provision of range control services. While the SIA 2018 regulates UK activities, the Outer Space Act 1986 (OSA 1986) continues to regulate launches and satellite operations from outside the UK. Strict government regulations under both the SIA 2018 and OSA 1986 may hinder the growth of the global Leo satellite market.
• The Leo Satellite Market faces several challenges in the areas of orders and delivery schedules due to the increasing demand for LEO-based services from various industries, including remote sensing for Earth observation and communication purposes. The complexities of LEO constellations, such as GEO, MEO, and LEO, require international community agreements and policies and regulations to ensure efficient use of spectrum and minimize conflicts. Small satellites, like CubeSats and Satellite buses, offer cost-effective solutions but present unique challenges in terms of on-orbit activities, RF mapping, and space debris management. Regulations surrounding satellite type, mass, and performance are also crucial for the success of LEO satellite initiatives. The Artemis Program and armed forces rely on LEO satellites for satellite-enabled communication, navigation, and low-latency telecommunications. Alternate power-sharing technologies and satellite antennas are essential for enhancing satellite efficiency and performance. The satellite industry must address these challenges to meet the growing demand for LEO satellites in telecommunications, navigation, scientific technology, and critical infrastructure sectors.

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Segment Overview 

This leo satellite market report extensively covers market segmentation by  

1. Type 

• 1.1 Small satellite
• 1.2 Medium satellite
• 1.3 Large satellite
• 1.4 Cube satellite

End-user 

• 2.1 Commercial use
• 2.2 Government and military use
• 2.3 Others

Geography 

• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Small satellite-  Small Low Earth Orbit (LEO) satellites, often referred to as nanosatellites, serve various commercial applications. These include space observation programs, interplanetary missions, systems testing in orbit, and biomedical research. Nanosatellites come in different sizes and costs, with some being small enough to fit in the palm. NASA defines a nanosat or small satellite as having a mass between 1 and 10 kg. In September 2020, Swarm, a Californian nano-satellite company, launched its first 12 commercial satellites into LEO, planning to announce prices and services soon. With the increasing number of internet services and mobile users, satellites are essential for civilian applications such as communications, weather, and GPS-enabled navigation. GPS receivers, offered to civilians, provide accurate time and position measurements for research, surveying, and aviation. The growing demand for these services is expected to fuel the growth of the small satellite segment in the global LEO satellite market.

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Research Analysis

The Leo Satellite Market refers to the growing industry of Low Earth Orbit (LEO) satellite systems. These satellites offer versatility in applications such as telecommunications, Earth observation, navigation, and remote sensing. Technical service providers play a crucial role in the development and deployment of these satellites. LEO satellites come in various sizes, including small CubeSats, medium, and large satellites, each with different masses and performance capabilities. Advanced mechanics and propulsion systems enable LEO satellites to provide low-latency telecommunications and navigation augmentation services. The space industry continues to invest heavily in this sector due to the efficiency and accessibility of LEO satellites, making them an essential component of modern technology infrastructure.

Market Research Overview

The Leo Satellite Market encompasses a range of advanced LEO satellite systems designed for various applications in the space industry. These systems are manufactured by technical service providers using mass production processes and short lifecycles to meet the demands of investors. LEO satellites offer versatility and advanced mechanics, providing satellite data for a multitude of purposes, including remote sensing, scientific technology, communication, navigation, and Earth observation. Technologies employed in LEO satellite manufacturing include liquid propulsion systems, electric propulsion, and gas-based propulsion systems. Liquid propulsion systems offer high thrust and specific impulse capabilities, utilizing fuels such as hydrazine and nitrogen tetroxide for precise orbital maneuvers. Electric propulsion systems, including Hall-effect thrusters and ion engines, provide fuel efficiency and extended mission lifetimes. LEO satellite systems serve various industries, including telecommunications, navigation, and scientific research. Applications include satellite-enabled communication for armed forces, critical infrastructure, and law enforcement agencies, as well as LEO navigation augmentation and low-latency telecommunications. Small satellites, such as CubeSats, Medium satellites, and Large satellites, are manufactured using satellite buses and payloads, with various satellite antennas and communication systems. The LEO satellite market is subject to import-export regulations, orders, and delivery schedules. LEO-based services also face international community agreements, policies, and regulations, including spectrum management and space debris mitigation. The Artemis Program and alternate power-sharing technologies are also significant factors in the LEO satellite market. In summary, the Leo Satellite Market is a dynamic and evolving sector of the space industry, driven by advanced technologies and the growing demand for satellite data and services. LEO satellites offer versatility, advanced mechanics, and a range of applications, from scientific research to communication and navigation, making them a vital component of the space industry’s future.

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation

• Type
• Small Satellite
• Medium Satellite
• Large Satellite
• Cube Satellite
• End-user
• Commercial Use
• Government And Military Use
• Others
• Geography
• North America
• Europe
• APAC
• Middle East And Africa
• South America

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Company Landscape

11 Company Analysis

12 Appendix

About Technavio

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