Market Trends of satellite manufacturing Industry
Cost-effectiveness and increased viability of small satellites leading to rise of satellite miniaturization
- The ability of a small satellite to perform nearly all of the functions of a traditional satellite at a fraction of the cost of a traditional satellite has increased the viability of building, launching, and operating small satellite constellations. The demand in North America is primarily driven by the United States, which manufactures the largest number of small satellites annually. In North America, during 2017-2022, 580 nanosatellites were placed into orbit by various players in the region. Currently, NASA is involved in several projects aimed at developing these satellites.
- The demand in Europe is primarily driven by Germany, France, Russia, and the United Kingdom, which manufacture the largest number of small satellites annually. During 2017-2022, more than 50 nano and microsatellites were placed into orbit by various players in the region. The miniaturization and commercialization of electronic components and systems have driven market participation, resulting in the emergence of new market players who aim to capitalize on and enhance the current market scenario. For instance, Open Cosmos, a UK-based startup, partnered with ESA to provide commercial nanosatellite launch services to end users while ensuring competitive cost-savings of around 90%.
- The demand in 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 toward 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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Increased spending and rising investment opportunities are the major factors aiding the growth of satellite manufacturing
- In North America, global government expenditure for space programs hit a record of approximately USD 103 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 in the world. In the United States, federal agencies receive annual funding from Congress worth USD 32.33 billion for their subsidiaries.
- Additionally, European countries are recognizing the importance of various investments in the space domain and are increasing their spending on space activities and innovation to stay competitive and innovative in the global space industry. For instance, in November 2022, ESA announced that it had proposed a 25% boost in space funding over the next three years designed to maintain Europe’s lead in Earth observation, expand navigation services, and remain a partner in exploration with the United States. The European Space Agency (ESA) asked its 22 nations to back a budget of around EUR 18.5 billion for 2023-2025. Germany, France, and Italy are the major contributors.
- Considering the increase in space-related activities in the Asia-Pacific region, in 2022, according to the draft budget of Japan, the space budget of the country was 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. Similarly, the proposed budget for India’s space programs for FY 2022 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
- Nano and minisatellites are poised to create the demand in the market
