Satellite Manufacturing and Launch Systems Market Size [2031]

Report Description

Satellite Manufacturing and Launch Systems Market Outlook 2031

The global satellite manufacturing and launch systems market size was valued at USD 16.92 Billion in 2022 and is likely to reach USD 27.63 Billion by 2031, expanding at a CAGR of 5.6% during 2023 – 2031. The market's growth is attributed to increasing need for reliable communication networks and the rising development of satellite launch vehicles.

Rising development of satellite launch vehicles is expected to boost the demand for satellite manufacturing and launch systems. Satellite manufacturing and launch systems are utilized in manufacturing new launch vehicles to carry satellites into outer space. Thus, the introduction and development of satellite launch vehicle is propelling the market. For instance,

• On February 10, 2023, the Indian Space Research Organization (ISRO) launched the second developmental flight of a small satellite launch vehicle (SSLV), SSLV-D2 from the first launch pad at SDSC SHAR, Sriharikota.

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Satellite manufacturing and launch system is the combination of several activities such as integration of satellite payload to the rocket, satellite manufacturing, and manufacturing of launching system & launching infrastructure. Satellite manufacturing systems are required to manufacture satellites for communication, earth observation, navigation, space observation, and others.

Increasing need for reliable communication networks is projected to drive the market in the coming years. Satellite manufacturing and launch systems are used to manufacture satellites and launch satellites into space, which provide a reliable communication network by transmitting radio signals from Earth's orbit to terminals located on Earth. Therefore, the rising need for reliable communication networks is estimated to increase the market demand during the forecast period.

The COVID-19 pandemic impeded the demand for satellite manufacturing and launch systems. The shortage of material & manpower and imposed trade barriers across the globe hindered production of the satellite launch vehicles and satellites.

The disruption in the supply chain management, due to preventive measures taken by governments to reduce the effect of COVID-19 infection, significantly hampered the manufacturing unit among all industries across the globe, including the satellite industry. For instance,

• According to the US Bureau of Labor Statistics, manufacturing output fell by 43% and hours worked in manufacturing fell by 38% in the second quarter of 2020 in the US.

Impact of Artificial Intelligence on Satellite Manufacturing and Launch Systems

The integration of artificial intelligence in satellite manufacturing and launch systems market creates a lucrative opportunity in the market. AI in satellite manufacturing enhances the security of satellite communication systems by detecting anomalies in network traffic and developing countermeasures to mitigate them.

It reduces the high operational expenditure incurred in satellite manufacturing by automating routine tasks. AI in satellite manufacturing helps in tracking and identifying potential interference in signals by classifying different types of signals received by satellites.

Satellite Manufacturing and Launch Systems Market Dynamics

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Major drivers

Increasing number of space exploration missions is expected to boost the demand for satellite manufacturing and launch systems during the forecast period. Satellite manufacturing is utilized to manufacture satellites and satellite communication terminals, while the launch system is required to send astronauts and satellites to space to explore space and gain critical insights. Thus, rising number of space exploration missions is propelling the market. For instance,

• As per a report, approximately 150 low earth orbit (LEO) space exploration missions are planned to happen by 2030, while 11 new space explorations are planned for Mars.

Growing adoption of satellites in the defense sector is anticipated to drive the market in the coming years. Defense forces across the globe are adopting satellites to gather intelligence data, to forecast weather, and to provide navigation information. This is projected to boost the demand for satellite manufacturing and launch systems during the forecast period, as a satellite manufacturing system is needed to develop and produce satellites.

Existing Restraints

High cost associated with satellite communication terminals is expected to restrict the market in the coming years. Satellite communication is expensive, as it involves installing and maintaining ground stations and terminals as well as launching and operating satellites. Moreover, the limited reusability of satellite launch vehicles is projected to hamper the market during the forecast period.

Emerging Opportunities

Growing number of satellite launches is anticipated to create a lucrative opportunity in the market during the forecast period. Satellite manufacturing and launch system is required to manufacture and launch satellites into the Earth's orbit and space to enhance communication networks, forecast weather, and gain critical information about space. Thus, increasing number of satellites launches creates an immense opportunity in the market. For Instance,

• On April 16, 2023, China launched the Fengyun-3 satellite. The Fengyun-3 satellite has been primarily designed to monitor and provide crucial information on severe weather conditions.

Scope of the Satellite Manufacturing and Launch Systems Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Satellite Manufacturing and Launch Systems Market Segment Insights

Type Segment Analysis

Based on type, the satellite manufacturing and launch systems market is segregated into satellite manufacturing and satellite launch systems. The satellite manufacturing segment held a large market share in 2022, due to the rising demand for satellite communication and increasing need for earth observation.

Earth observation is required to provide the evidence necessary for informed decision-making in critical situations. Satellites are needed in the earth observation, as they provide an image of the surface of the Earth, which increases their adoption in several industries.

The satellite launch systems segment is projected to expand at a quick pace during the projection period, owing to the increasing demand for reusable launch systems and rising space exploration missions.

Launch systems are a major element in space exploration mission, as these are used to carry spacecraft from the surface of the Earth into space, which increases its adoption. Moreover, the growing modernization programs for launch systems are anticipated to drive the market in the coming years.

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Satellite Type Segment Analysis

In terms of satellite type, the global market is categorized into GEO, MEO, and LEO. The LEO segment dominated the market in 2022. It is expected to continue its dominance throughout the assessment period, due to its wide applicability in various industries. The LEO satellite is utilized for military reconnaissance, spying, communications, and other imaging applications, as it requires less signal power due to low altitude.

LEO satellites are cheaper as compared to MEO and GEO, as they require less rocket power to place that encourages its adoption. Moreover, the increasing launch of LEO satellites to provide improved broadband services is anticipated to boost the market. For instance,

• On September 11, 2023, Telesat, one of the large and innovative global satellite operators, announced the launch of LEO satellites in 2026 to provide global broadband service from space in late 2027.

End-user Segment Analysis

Based on end-user, the satellite manufacturing and launch systems market is bifurcated into military & government and commercial. The commercial segment accounted for a major share of the market in 2022, due to increasing demand for wireless internet connectivity. People across the globe are widely adopting wireless internet connections, as it allows users to virtually connect with their relatives, friends, colleagues, and others.

Satellite manufacturing and launch systems are needed for wireless internet connection. Wireless internet services require satellite terminals to receive signals from space and retransmit the signal to internet users. These terminals are built under satellite manufacturing programs. Thus, the increasing demand for wireless internet connectivity is projected to enhance the market in the coming years.

The military & government segment is expected to expand at a robust pace in the coming years, owing to increasing border tension and rising adoption of advanced technology. Military and governments are adopting advanced technology such as satellite monitoring for intelligence gathering and border patrolling, which is estimated to boost the demand for satellite manufacturing and launch systems.

These systems are required to launch satellites into space, which provide real-time surveillance of sensitive areas around the border. This in turn is projected to increase the demand for satellite manufacturing and launch systems among military personnel and governments.

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Regional Outlook

In terms of region, the satellite manufacturing and launch systems market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a large market share in 2022, due to the increasing technological advancement in space exploration and the presence of established market players such as Lockheed Martin Corporation, L3Harris Technologies, Inc., RTX, and Northrop Grumman in the region.

Moreover, rising satellite launches in the region are propelling the need for satellite manufacturing and launch systems, as these systems are utilized to launch satellites into space for space exploration missions. For instance,

• On August 31, 2023, SPACEX a US-based spacecraft manufacturing company launched 22 Starlink satellites to low-Earth orbit to enhance satellite broadband service.

The market in Asia Pacific is anticipated to expand at a high CAGR during the forecast period, owing to the growing research & innovation in the satellite industry and the rising number of space exploration missions in the region.

Moreover, the increasing satellite launches coupled with rising reliance on high-speed satellite communication is expected to boost the demand for satellite manufacturing and launch systems in the coming years, as satellite launches need launching systems. For instance,

• On October 23, 2022, OneWeb, a key company in low earth orbit (LEO) satellite manufacturing, launched 36 satellites from the Satish Dhawan Space Centre in Sriharikota, India to deliver high-speed and low-latency connectivity across the globe.

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