Total revenue opportunities for the global satellite manufacturing market will soar past $366.06bn with global launch demand for 12,766 satellites and cumulative launch opportunities of $102.52bn for the period 2019 to 2030, according to a report titled ‘Global Space Industry Outlook, 2019 and Beyond’ by Frost & Sullivan.
“The space industry is rapidly evolving. Not only are satellite platforms becoming more agile and robust with the execution of software-based satellites, electric propulsion systems and spot beam offerings, but competition in the launch services market is lowering prices and new entrants with mega-constellation-based business models are poised to disrupt the connectivity and Earth observation market,” commented Arun Kumar Sampathkumar, Industry Manager, Space at Frost & Sullivan.
Currently, there is a clear gap between satellite launch demand and the supply of launch services, with an average launch wait period of six months to two years for satellite operators. However, more than 40 global new participants are developing launch vehicles to bridge this gap.
“In the small-satellite launch segment, the major unmet needs include on-demand launch, independent mission from the primary launch payload, and launch cost,” noted Sampathkumar. “Due to the existing gap between supply and launch, the launch service market is price inelastic. However, with the entry of new vehicles and reusable capabilities, launch supply is likely to increase and will lead the market towards price sensitivity.”
Downstream data pressures have meant that communication satellites represent the fastest growing market segment, increasing demand for the manufacture of high-throughput and constellation communication satellites. Sampathkumar sees multiple incumbents and new participants looking to install their high-capacity communication satellites in geostationary Earth orbit (GEO), medium Earth orbit (MEO) and low Earth orbit (LEO). This will result in both new installation and recurring replacement mission demand for manufacturing communication satellites.
Growth opportunities participants should tap into for future success, according to the analyst, include the manufacturing sector, using COTS technologies, additive manufacturing, industrial IoT (IIoT) and serial production with systems and satellite platform standardisation; the launch services sector, focusing on infrastructure-as-a-service for dedicated launch service providers and vehicle reusability to reduce launch costs; ground station services players, developing a global network of ground stations that use automated aggregator platforms as well as standardise mission control processes and systems; Earth observation participants, developing affordable standard platforms for value-added service providers; and satellite communication players, focusing on network standardisation and integration, including terrestrial and capacities in LEO, MEO and GEO.