Market Trends of satellite communications Industry
The global demand for satellite miniaturization is rising
- The ability of small satellites to perform nearly all of the functions of a traditional satellite at a fraction of its cost has increased the viability of building, launching, and operating small satellite constellations. The demand from North America is primarily driven by the United States, which manufactures the most small satellites each year. In North America, during 2017-2022, a total of 596 nanosatellites were placed in orbit by various players in the region. NASA is currently involved in several projects aimed at developing these satellites.
- Europe has become the hub for nano and microsatellite manufacturing due to the presence of several prominent satellite manufacturing entities in the region, including Surrey Satellite Technology Ltd and GomSpace Group AB. In November 2018, ESA announced its participation in designing a low-cost 35 kg lunar communications satellite mission called DoT-4, which was targeted for a 2021 launch. DoT-4 was designed to provide the communications relay back to Earth using the Goonhilly Deep Space Network and link up with a rover on the surface of the Moon.
- The demand from Asia-Pacific is primarily driven by China, Japan, and India, which manufacture the largest number of small satellites annually. During 2017-2022, more than 190 nano and microsatellites were placed into orbit by various players in the region. China is investing significant resources in augmenting its space-based capabilities. The country has launched the most significant number of nano and microsatellites in Asia-Pacific to date.
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Investment opportunities are increasing in the market
- Government expenditure for space programs in North America reached approximately 37 billion in 2021. The region is the epicenter of space innovation and research, with the presence of the world's biggest space agency, NASA. In 2022, the US government spent nearly USD 62 billion on its space programs, making it the highest spender on space programs in the world. In the United States, federal agencies receive funding of USD 32.33 billion from Congress every year, known as budgetary resources, for their subsidiaries.
- The UK government has planned an upgradation, worth USD 7.5 billion, of the satellite telecommunication capabilities of the armed forces. In July 2020, the UK Ministry of Defence (MoD) awarded a contract worth USD 630 million to Airbus Defence and Space for constructing a new telecommunications satellite as a stopgap to bolster military capabilities. In November 2022, ESA announced that it proposed a 25% boost in space funding over the next three years to maintain Europe's lead in Earth observation, expand navigation services, and remain a partner in exploration with the United States. ESA asked its 22 nations to back a budget of around EUR 18.5 billion for 2023-2025.
- Considering the increase in space-related activities in the Asia-Pacific region, in 2022, according to the draft budget of Japan, the space budget amounted to over USD 1.4 billion, which included the development of the H3 rocket, Engineering Test Satellite-9, and the nation's Information Gathering Satellite (IGS) program. The proposed budget for India's space programs for FY22 was USD 1.83 billion. In 2022, South Korea's Ministry of Science and ICT announced a space budget of USD 619 million for manufacturing satellites, rockets, and other key space equipment.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Small satellites are poised to create demand in the market
