Satellite Manufacturing Market Size, Share & Trends Analysis Report By Category, By Mass (Large Satellites, Medium-sized Satellites), By Type Of Business (Government, Commercial), By Application, By Region, And Segment Forecasts, 2024 - 2030

Satellite Manufacturing Market Size & Trends

The global satellite manufacturing market size was estimated at USD 18.75 billion in 2023 and is projected to grow at a CAGR of 15.4% from 2024 to 2030. The growth is attributed to the increasing demand for communication services and expanding satellite applications, such as navigation and observation of earth. Moreover, the advancements in satellite technology and a growing interest in space exploration are also creating positive growth prospects for the market.

Several emerging economies are increasing their space exploration activities with significant accomplishments in robotic and human space missions. The ongoing developments in the space domain in terms of satellite broadband, in-orbit servicing, satellite imaging, micro launchers, etc., are expected to drive the market growth over the coming years.

While most space activities are still led and funded by governments with private industries acting as suppliers for the programs, the emergence of commercial approach to space, marked by innovative schemes and business models, is expected to open new growth avenues for the market. For instance, in January 2024, SpaceX launched 23 more of its Starlink internet satellites to orbit, marking the company’s third launch for this year. The company aims to launch 144 missions in 2024, breaking its own record of 98 in 2023. Such developments in the commercial space sector will substantiate the market growth over the foreseeable future.

The supportive government initiatives aimed at strengthening the international space partnerships. For instance, in June 2023, the U.S government approved classified Space Security Guidance to direct the country in increasing integration with partners and allies to engage in space activities, plans, operations, capabilities, and information sharing for mutual benefit with respect to growing space and counter space threats.

The market growth is further expedited by the increasing research & development activities requiring efficient communication and observatory solutions. For instance, in December 2023, Thales Alenia Space, a joint venture between Thales and Leonardo, selected UK’s National Satellite Test Facility for the first comprehensive integration, assembly, and test campaign of the FLEX (Fluorescence Explorer) satellite of European Space Agency. This satellite is being used to study the fluorescence of the earth's vegetation to gain better insights on the planet’s state of vegetation productivity. These developments are instigating the demand for satellites, creating significant opportunities for the market.

Market Concentration & Characteristics

The market growth stage is high, and the pace is accelerating. The growing inclination of businesses toward satellite communication and increased investments to expand space infrastructure is substantiating the market growth. The market is largely influenced by the high degree of innovation which is instigating the demand for satellites and the infrastructure, attracting significant investments from government as well as private players.

The market is witnessing an increasing number of merger and acquisition (M&A) activities, especially among the public and private players. They are forming strategic alliances which have become pivotal in fostering research & development activities and innovation and expanding market reach.

With the rising demand for satellites amid the rising space exploration activities and growing demand for reliable communication, regulatory compliance and standards play a key role in the market growth. Regulatory frameworks promote standards and best practices in the field of satellite design, operations, and end-of-life disposal.

End-user concentration is a significant factor in the global market. Several industries, including mining, construction, oil & gas, energy & utilities, agriculture, transportation, etc., largely rely on satellite communication to remotely monitor on-site activities, increasing safety and enhancing maintenance procedures.

Category Insights

Based on category, the low earth orbit (LEO) segment led the market with the largest revenue share of 56.25% in 2023. This is attributed to the rising popularity of these satellites due to the advantages and potential of LEO that are driving their adoption across several organizations for a variety of communication, business, defense, etc. The proximity of LEO satellites to the earth leads to shorter distance for signals to travel, which results in lower latency. Moreover, LEOs require less powerful amplifiers for transmission from earth and less energy to be deployed into the orbit. As a result, most communication applications use LEO satellites, driving their demand and impelling segmental growth.

The geostationary orbit (GEO) segment is expected to grow at the fastest CAGR of over 17.0% over the forecast period. The satellites in geostationary orbit play a crucial role in weather monitoring as they provide a constant view of the same surface area. Moreover, as geostationary satellites are always over a particular location, they are extremely useful for communication through television, telephone, radio, etc. The high usability of these satellites is expected to accelerate the segment growth over the forecast period.

Mass Insights

Based on mass, the medium-size satellites segment led the market with the largest revenue share of 69.29% in 2023, owing to the advantages associated with them. These satellites facilitate low cost and short production cycles as compared to traditional satellites. Moreover, medium-sized satellites need relatively less time for construction and launch, enabling faster implementation of space related projects. In addition, they can maneuver and change their positions in orbit easily, which eases their deployment anywhere in space, giving more flexibility to the mission planners during observation or examination of a particular area.

The nano satellites segment is estimated to grow at the fastest CAGR of nearly 17.5% over the forecast period. These satellites are transforming the space exploration sector by making it more accessible, flexible, and affordable. Moreover, the large number of advantages associated with them make them a powerful tool for scientific research and exploration, which is driving their demand and fueling the market growth.Nano satellites cost significantly less in development as well as launch stages and can be simultaneously launched in large numbers, making them suitable for conducting scientific research, communications, or observation missions in space.

Type of Business Insights

Based on type of business, the commercial segment led the market with the largest revenue share of 74.09% in 2023, owing to increasing investment in space exploration activities and development of satellites by the private players. Moreover, the emergence of various new companies in the commercial space sector, that are engaged in creating and testing reusable rockets and sending payloads into the orbit, is also contributing to segmental growth.

For instance, in December 2023, China's commercial reusable Hyperbola-2Y rocket, also known as SQX-2Y, successfully completed its second test flight at the Jiuquan Satellite Launch Center. The consecutive successful launches by the private players will expedite the segment growth in the coming years.

Application Insights

Based on application, the communication segment led the market with the largest revenue share of 48.22% in 2023. Satellite communication is gaining immense prominence with increased adoption of sat phones and broadband satellite data terminals. Industries such as construction, oil & gas, mining, drilling, etc., rely on satellite communication to stay in contact with the workers in remote locations, as it facilitates real-time and accurate GPS tracking. Besides, it is extremely crucial during the failure of mobile networks caused by floods, tornadoes, hurricanes, fires, and long power outages, which allows businesses to avoid financial and reputational damage. The high usability of satellite communication across government as well as commercial sectors is stimulating segmental growth.

The research and development segment is expected to grow at the fastest CAGR of around 16.0% from 2024 to 2030. Satellites help researchers and scientists to monitor weather, climate change, and effects of natural disasters such as hurricanes, volcano eruptions, and tsunamis. Moreover, satellites are crucial in space exploration, observing celestial bodies and enhancing Satellites take pictures of the sun, planets, black holes, dark matter, or faraway galaxies that help scientists better understand the solar system and universe. The increasing application of satellites in research & development activities is expected to create ample growth opportunities for the segment.

Regional Insights

North America dominated the satellite manufacturing market with the largest revenue share of 54.14% in 2023 and is expected to witness at a considerable CAGR over the forecast period. This is attributed to the growing space industry in the region. Moreover, the ongoing expansion of various private aerospace companies that are engaged in the manufacturing and launch of rockets and satellites, is creating lucrative growth opportunities for the regional market. Besides, the growing trend of public-private partnerships for space-related missions is also expected to drive the market growth over the coming years.

U.S. Satellite Manufacturing Market Trends

The satellite manufacturing market in U.S. is expected to grow at the fastest CAGR of 13.0% from 2024 to 2030 due to rising demand for satellite-based services like communications, earth observation, and navigation. Innovations in small satellite technology, reduced launch costs, and increased private sector investments have driven market expansion.

Europe Satellite Manufacturing Market Trends

The satellite manufacturing market in Europe is expected to witness at a significant CAGR of over 16.0% from 2024 to 2030. The increasing demand for communication, earth observation, and navigation satellites. Key factors include advancements in small satellite technology, supportive government policies, and significant investments by both public and private sectors. The European Space Agency (ESA) and national space agencies play crucial roles in funding and promoting innovation.

The Germany satellite manufacturing market is expected to witness at a substantial CAGR of nearly 16.0% from 2024 to 2030 due to strong engineering base and significant government and private sector investment. The country's focus on innovation in small satellite technology and earth observation systems drives market expansion. The German Aerospace Center (DLR) and various private companies play pivotal roles in advancing satellite capabilities.

The satellite manufacturing market in UK is accounted for a revenue share of 13.0% in 2023. The UK Space Agency's initiatives and funding programs, along with the Satellite Applications Catapult, drive innovation and development in satellite technology. The market benefits from advancements in small satellites and increased demand for communication, navigation, and earth observation services. Collaboration with international partners and active participation in global satellite constellations further boost the UK's standing in the global satellite manufacturing industry.

The France satellite manufacturing market is expected to witness at the fastest CAGR of 15.0% from 2024 to 2030. The growth is driven by strong government support and a well-established aerospace industry. The French space agency CNES and major companies like Thales Alenia Space and Airbus Defense and Space lead advancements in satellite technology.

Asia Pacific Satellite Manufacturing Market Trends

The satellite manufacturing market in Asia Pacific is expected to witness at the fastest CAGR of 17.0% from 2024 to 2030 as more private firms are witnessing successful launches and building their own sophisticated industrial chain. Moreover, supportive government initiatives are expected to proliferate the market growth further. For instance, in November 2023, the Japanese government announced to allocate USD 6.7 billion fund for the Japan Aerospace Exploration Agency (JAXA), with an aim to support the country's private-sector companies and universities for the development of new rocket and satellite technologies. Such profound steps will transform the outlook of regional market in the coming years.

The China satellite manufacturing market is expected to witness at a significant CAGR of 17.0% from 2024 to 2030. The China National Space Administration (CNSA) and leading companies like China Aerospace Science and Technology Corporation (CASC) spearhead advancements in satellite technology. China focuses on developing a wide range of satellites, including communication, earth observation, and navigation systems. The country's Belt and Road Space Information Corridor and participation in global satellite projects enhance its market presence.

The satellite manufacturing market in India is expected to witness at the fastest CAGR of 20.0% from 2024 to 2030. The growth is driven by the Indian Space Research Organisation (ISRO) and a burgeoning private sector. ISRO's successful missions, including communications, earth observation, and navigation satellites, have positioned India as a key player in the global space industry. Initiatives like the Gaganyaan manned mission and collaborations with international space agencies bolster market growth. The government's supportive policies, cost-effective manufacturing, and advancements in small satellite technology further enhance India's competitiveness.

Satellite manufacturing market in Japan is expected to witness a CAGR of 35.0% from 2024 to 2030. The Japan Aerospace Exploration Agency (JAXA) and major companies like Mitsubishi Electric and NEC Corporation lead advancements in satellite technology. Japan focuses on a diverse range of satellites, including communication, earth observation, and scientific research.

Middle East And Africa Satellite Manufacturing Market Trends

The satellite manufacturing market in Middle East and Africa is expected to witness at the fastest CAGR of 17.0% from 2024 to 2030. The growth is driven by increasing demand for communication, earth observation, and navigation satellites. Countries like the United Arab Emirates (UAE) and South Africa are leading this expansion with ambitious space programs and investments. The UAE's Mohammed bin Rashid Space Centre and South Africa's South African National Space Agency (SANSA) play key roles in advancing satellite technology.

Key Satellite Manufacturing Company Insights

Some of the key players operating in the market include Lockheed Martin Corporation, Thales, Mitsubishi Electric Corporation, and Airbus among others.

• Lockheed Martin Corporation is an aerospace, defense, arms, information security, and technology company. It is majorly engaged in the research, development, design, manufacture, sustainment, and integration of advanced technology systems, products and services. The company’s key business areas include aeronautics, missiles & fire control, rotary & mission systems, and space

• Thales is a multinational company engaged in the design and development of various systems and equipment for various sectors, such as aerospace and space, defense and security, digital identity, and transport. The company is investing in digital and cutting-edge innovations, such as artificial intelligence, Big Data, connectivity, quantum technology, and cybersecurity

ArianeGroup, Dhruva Space Private Limited, and Gilmour Space Technologies are some of the emerging market participants in the global market.

• ArianeGroup is a prominent company, working to design and create innovative and competitive launch systems, providing military and civil space solutions for customers operating in institutional, commercial, and industrial domains. It offers various cutting-edge solutions, equipment, and services, to support the defense, space, energy, and other industrial sectors

• Gilmour Space Technologies is a renowned launch services company in Australia, providing space solutions to customers operating in the commercial and defense sectors. The company is engaged in the development of Eris orbital launch vehicles and G-Sat microsatellite platforms

Recent Developments

• In December 2023, Thales Alenia Space, the joint venture between Thales and Leonardo, inked a multi-mission contract with PT Len Industri to deliver a state-of-the-art Earth observation constellation integrating radar and optical sensors for the Indonesian Ministry of Defense. This constellation comprises radar and optical satellites that are operated through a multi-mission ground segment

• In November 2023, The next launch by Firefly Aerospace, scheduled for December, will be an electronically steerable antenna payload designed by Lockheed Martin Corporation for a technology demonstration. Lockheed Martin Corporation announced the launch of a small satellite by Firefly Aerospace, weighing just under 300 pounds and carrying a newly designed electronically steerable antenna. These antennas do not have moving parts and can produce multiple beams simultaneously

• In August 2023, Blue Canyon Technologies, a small satellite manufacturing sub-division by RTX Corporation, announced the launch and initial contact with CubeSats, as a part of the NASA Starling mission. This technology demonstration is aimed at the success of cooperative groups of spacecrafts operating in an autonomous and synchronous way

Satellite Manufacturing Market Report Scope

Global Satellite Manufacturing Market Report Segmentation

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global satellite manufacturing market report based on category, mass, type of business, application, and region.

• Category Outlook (Revenue, USD Million, 2018 - 2030)

  • Low Earth Orbit (LEO)

  • Medium Earth Orbit (MEO)

  • Geostationary Orbit (GEO)

  • Others

• Mass Outlook (Revenue, USD Million, 2018 - 2030)

  • Large Satellites

  • Medium-sized Satellites

  • Nano Satellites

  • Others

• Type of Business Outlook (Revenue, USD Million, 2018 - 2030)

  • Government

  • Commercial

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Communication

  • Earth Observation and Remote Sensing

  • Navigation

  • Research and Development

  • Military Surveillance

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Saudi Arabia

    • South Africa