USD 17.38 Billion
Satellite Manufacturing Market Size, Share, Growth Analysis, By Size(Small, Medium, Large), By Satellite(LEO, MEO, GEO, Others), By Application(Communication, Earth Observation, Navigation, Space Observation), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45J2146 |
Region:
Global |
Published Date: February, 2024
Pages:
252
|Tables:
93
|Figures:
76
Satellite Manufacturing Market Insights
Global Satellite Manufacturing Market size was valued at USD 15.8 Billion in 2022 and is poised to grow from USD 17.2 Billion in 2023 to USD 27.4 Billion by 2031, at a CAGR of 5.91% during the forecast period (2024-2031).
The global satellite manufacturing market is expected to grow at a rapid pace, driven by increasing demand for satellite-based services across various sectors, including telecommunications, defense, and earth observation. These sectors are looking for satellites to process their services efficiently. Here, LEO is one of the frequently used satellites in these industries. Some of the communication applications like the Iridium phone system that employs 66 LEO satellites for global mobile communication, always need a satellite that is closer, orbiting the earth at an altitude of nearly 500–1500 km.
Additionally, technological advancements such advanced payload systems refer to a sophisticated technologies integrated into satellites to improve the satellite functionality and performance. These systems include high-throughput transponders, flexible frequency bands, and reconfigurable antennas. The result is enhanced data transmission rates, greater coverage flexibility, and improved communication reliability. These advanced payload systems are essential for meeting the growing demand for reliable and high-capacity satellite communication services.
SkyQuest’s comprehensive analysis indicates that the global satellite manufacturing market has shown great potential in the last decade. The number of patent application has grown from 39,218 in 2014 to 73,692 in 2023, that is an 88% increase and shows that the rate of innovation has been improving over the years because of the advancement in technology and vast uses of satellite technologies. The increasing involvement of companies such as SpaceX, Blue origin and other private companies have made the environment favorable for new inventions. The increasing number of patent applications reveals the intense competition between key players in this market. This reflects the increasing number of innovations in this market, which will further drive the market growth during the forecast period.
US Satellite Manufacturing Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Small
Fastest Growth
Small
Growth Rate
6% CAGR
Satellite Manufacturing Market ($ Bn)
Country Share for North America Region (%)
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Satellite Manufacturing Market Segmental Analysis
The global satellite manufacturing market is segmented on the basis of size, satellite, application, and region. Based on size, the market is segmented into Small, Medium, and Large. Based on satellite, the market is segmented into LEO, MEO, GEO, and Others. Based on application, the market is segmented into Communication, Earth Observation, Navigation, Space Observation, and Others. Based on region, the market is segmented into North America, Europe, Latin America, Asia- Pacific, Middle East & Africa.
Analysis By Size
Based on size, the market is segmented into small, medium, and large. Within the market, the small size segment for satellite manufacturing, has dominated the market by holding 93.7% in the year 2023. There are many reasons behind the dominance of this segment, such as their cost-effectiveness, shorter development cycles, and a less weight ranging from 0.01 Kg to 1200 Kg, currently reign supreme in the market. These factors further help in various applications such as communication, and scientific research. Additionally, from production to launch, it costs less amount as compare to other type satellites that makes it most adaptable satellite size in the market. Overall, the continuous development and deployments have secured its further dominance in the forecast period.
On the other hand, the second largest and fastest growing sub segment in the global satellite manufacturing market is the medium size satellite segment. The market for medium satellites is expanding as there is an increasing demand for better communication systems and sharper images for military, business, and research applications. This trend is as a result of new technologies in the payload capacities and upsurge in space investment by governments. In addition, reusable launch vehicle and integration of advanced propulsive system have made it possible to launch medium sized satellites more frequently and at cheaper price thus leading to this rapid growth.
Analysis By Application
In 2023, the communication sub-segment has dominated the market and emerged as the largest segment in the global satellite manufacturing market. Our analysis also shows that the demand for faster internet connection and the rise in the use of smartphones and other wise connected devices explain this growth. 5G network extension and the enhancement of the need for global communication have also contributed to the increased use of communication satellites. Also, the concept of mega-constellations, like the SpaceX Starlink, targeting internet coverage for the whole world, will go a long way in driving the market’s growth.
On the other hand, the second largest and fastest growing segment is the Earth Observation segment. This growth is occasioned by the increased demand of data in various fields such as agriculture, environment and disaster management. Additionally, the improvement in the imaging technologies and the use of remote sensing data for precision agriculture, land use planning, and climate change research are also increasing the demand of satellites for Earth Observation. Furthermore, the increasing government and private company interest in Earth observation satellites to improve data quality and the frequency of data acquisition has boosted the segment’s development.
Satellite Manufacturing Market By Size
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Satellite Manufacturing Market Regional Insights
Our analysis reveals that North America has dominated the global market for satellite manufacturing in 2023 by holding 60.09%. The existence of significant satellite producers and operators, as well as significant public and private sector investments in satellite technology, are principally responsible for this supremacy. Many of the top satellite businesses and organizations are based in the United States, which has been essential in fostering innovation and market dominance. Additionally, government support also a key factor contributing the growth of this region. For instance, the U.S. Department of Defense is investing in small satellite constellations for improved communication and surveillance capabilities. This initiative is also playing a pivotal role in the growth of this region.
In 2023, Europe has placed itself as the second largest region within the satellite manufacturing market due to the ongoing investments in the startups and the nano and microsatellite development projects. These initiatives have resulted in the region as the second largest region within the market.
With the CAGR at 6.2%, the Asia Pacific region is emerging as the fastest growing region for the satellite manufacturing market. Ongoing space projects such as China’s plan to launch 100 satellite in 2024, and India’s plan to launch 50 satellite for intelligence gathering in five years, are contributing this region’s growth.
Satellite Manufacturing Market By Geography
- Largest
- Fastest
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Satellite Manufacturing Market Dynamics
Satellite Manufacturing Market Drivers
Increasing Demand for Advanced Connectivity and Communication Services
- The satellite manufacturing market is rapidly expanding because the world needs modern connectivity and communication services. Companies such as SpaceX, Amazon, and OneWeb are placing mega constellations of SmallSats for the provision of worldwide internet connectivity, earth imaging, and communication systems. This large-scale production of SmallSats that are being fueled by the availability of multiple satellite launch, is making manufacturing of satellite at fast pace. Our analysis reveals that this trend is expected to continue for the foreseeable future, fueling growth in the global satellite manufacturing market.
Expansion of Government and Military Satellite Programs
- Another driver contributing in the growth of the market is the increasing investment in the governments and military satellite projects. National authorities across the world focus on space satellites for defense, messaging, and research purposes. For instance, the US Department of Defense has significantly boosted its investment in space, with the U.S. Space Force proposed to receive $24.5 billion in 2023 which is a substantial increase from the previous year’s budget allocation. This year’s proposed defense budget of $5 billion for 2023 emphasize the significance of space resources. In the same way, other national agencies such as the European Space Agency are also improving on satellite characteristics. The ambitious programs of space development like the EU’s Copernicus and Galileo projects and other space programs of countries like China and India increase the demand for high-end satellite manufacturing, presenting profitable prospects in the industry.
Restraints
High Cost Associated with Satellite Manufacturing and Launch
- This is so because the satellite generally involves high costs in manufacturing and launch which is a major challenge in the market. Satellite production is a serious business which requires much research, the use of the most sophisticated technology and tests, and this results in most satellites costing hundreds of millions of dollars. Such costs are evidenced by activities of organizations such as ESA and NASA; the occurrence of failed launches or delays amplifies the financial risk, thus, insurance rate. Also, infrastructure, especially in relation to space transportation, the construction of private spaceports, and the general investment in space exploration entail high costs. This financial problem hinders market expansion and presents an issue to smaller competitors, thus becoming a major problem in fulfilling satellite demand globally.
Regulatory Challenges and International Compliance Issues Hinder the Growth
- Regulatory challenges and international compliance issues pose significant restraints on the global satellite manufacturing market. Licenses from the FCC, NOAA and respecting ITAR regulation in U.S. can slow down satellite deployment. Internationally, the adherence to the ITU regulations for the orbital slots as well as the frequency assignment contributes to the further time, particularly with the growing occurrence of mega-constellations. Also, legal restrictions such as export controls, and data protection laws such as ITAR and GDPR also pose challenges to the collaborations and market opportunities. These are the factors that slow down the industry development and make it impossible to progress in its innovations.
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Satellite Manufacturing Market Competitive Landscape
The satellite manufacturing market is highly competitive with companies such as Airbus Defence and Space, Lockheed Martin, Boeing and Northrop Grumman, and Thales Alenia Space. These key players utilize sophisticated technology and an expansive background to deliver a wide Satellite Solutions Sphere which includes Low Earth Orbit satellites, to Geostationary satellites. The market has high levels of innovation and differentiated competition involving research and development activities, key alliances, and acquisitions to improve competence and market coverage. There is also new players and space startups investing in the market which will help in the competition. This is because, with the advancement of satellite-based services such as communications, earth observation and navigation there is competition as well as advancement in technology. Furthermore, the type of contracts and collaborations signed between the governments of different countries and satellite manufacturing companies contribute a lot towards the competitiveness of the satellite manufacturing industry.
Satellite Manufacturing Market Top Player’s Company Profiles
- Lockheed Martin Corporation
- Boeing
- RTX Corporation
- Airbus
- Northrop Grumman
- Thales SA
- Mitsubishi Electric Corporation
- CASC
- L3Harris Technologies Inc
- Ball Corporation
- Safran
- ISRO
- Reshetnev
- Maxar Technologies Inc.
- Israel Aerospace Industries Ltd (IAI)
- SpaceX
- Blue Origin
- ISISpace
- Berlin Space Technologies (BST)
- NovaWurks
Satellite Manufacturing Market Recent Developments
- In February 2024, five missile tracking satellites designed and built by L3Harris Technologies launched from Cape Canaveral Space Force Station, Florida, as part of the Missile Defense Agency’s (MDA) Hypersonic and Ballistic Tracking Space Sensor (HBTSS) program and the Space Development Agency’s (SDA) Tranche 0 (T0) Tracking Layer program.
- In February 2024, ESA approved the Dutch TANGO satellites for emission monitoring, with ISISPACE as the prime contractor. TANGO will measure methane and CO2 emissions from major sources. Developed by a Dutch consortium, the satellites are expected to launch in early 2027.
- In August 2023, Lockheed Martin announced the opening of a new facility dedicated to small satellite manufacturing. This 20,000-square-foot space was designed to streamline smallsat processing and enable high-rate delivery. The facility, located on the Waterton campus, featured six scalable assembly lines and could accommodate various mission classifications simultaneously. It was built to support all stages of smallsat development, including functional and performance testing.
Satellite Manufacturing Key Market Trends
- Rising Demand for Satellite IoT Connectivity: Based on SkyQuest’s analysis, we found that the expanding Internet of Things (IoT) market is contributing to the satellite connectivity market. Sectors such as agriculture, logistics, oil and gas need connectivity in the areas where the terrestrial networks are not accessible. Our analysis also reveals the satellite IoT connectivity is instrumental in generating information on asset tracking, performance improvement, and safety. This demand is making satellite manufacturers to invest in and launch small cheap satellites that are suitable for IoT applications and thus creating the market.
- Integration of Artificial Intelligence (AI) in Design & Manufacturing: Another key trend emerging in the satellite industry is the incorporation of artificial intelligence (AI) in the design and manufacturing of satellites. Lockheed Martin is one of the organizations using AI in the development of satellite designs, maintenance, and identification of variances on its own. AI can process large data sets to look for signs of problems before they are significant and thus improving the dependability and durability of satellites. Incorporation of AI in design and manufacturing of satellites will result in increased accuracy in the design and construction processes, less down time and higher mission accomplishment rates. This technological advancement is likely to revolutionize satellites by increasing their effectiveness in a big way.
Satellite Manufacturing Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Product types team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global satellite manufacturing market analysis, the global satellite manufacturing market shows a dynamic environment influenced by a number of factors. Disruptive entrants like SpaceX have brought in an age of innovation and cost-cutting, while long-established key players like Boeing, Lockheed Martin, and Airbus continue to rule with their extensive expertise and technological power. The satellite market is fast changing due to advances in downsizing, a rise in the need for connection solutions, and a move towards smaller, more affordable satellites. Government space agencies from rising economies, notably China and India, are also establishing their presence and broadening the field of competition. The development of reusable rockets, environmental issues, and ambitious aspirations for space exploration, such as Mars colonization, are all having an impact on the satellite manufacturing industry.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 15.8 Billion |
| Market size value in 2031 | USD 27.4 Billion |
| Growth Rate | 5.91% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Satellite Manufacturing Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Satellite Manufacturing Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Satellite Manufacturing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Satellite Manufacturing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Satellite Manufacturing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Satellite Manufacturing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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