Satellite Payload Market

Satellite Payload Market Statistics 2030 -

The global satellite payload market was valued $8,210.9 million in 2020 and is projected to reach $17,603.4 billion in 2030, registering a CAGR of 8.3%.    

The impact of the COVID-19 pandemic has resulted in delayed development and launches of satellite payload, slowdown in the operation of key players, and shortage of components. The pandemic has caused supply-chain disruptions leading to delayed launches of satellites. Shortage of components due to regulations associated with import and export of goods has also affected the market. Limited supply of liquid oxygen and liquid nitrogen owing to greater demand from hospitals to treat COVID-19 patients caused further delay in launch of payload. The satellite payload market has also been impacted by computer chip shortage due to manufacturing shutdowns in China, South Korea, and Taiwan. However, satellite services have been used during the pandemic to offer services such as voice, data, and broadband communication across the globe. Satellite services have enabled delivery of communication, navigation, Earth observation, and remote sensing services to healthcare, businesses, and government organizations throughout the pandemic.

Satellite payload is defined as modules carried on satellites with the ability to perform certain functionalities. Satellite consists of the payload and the bus. Satellite bus is used to carry subsystems and payloads, whereas payload is developed to perform specific functions such as communications, imaging, and navigation while in orbit. Satellite payload includes equipment such as transponders, repeaters, antennas, spectrometers, and cameras among others. Earth Observation and remote sensing applications use cameras, radar, and other sensing equipment for collecting relevant data. To enable delivery of satellite communication services, payload includes antennas, receivers, and transmitters, based both in-space and on the ground, for transmission and storage of the data needed.

Increasing adoption of small satellites for Earth observation, telecommunication, and imaging drives the growth of the market. Small satellites are increasingly being used by government, defense & intelligence, and commercial organizations to enable launch of low cost and efficient payload. Greater need of Earth observation for delivery of high resolution imagery for civil engineering & construction, agriculture & forestry, and transportation industries further accelerates the demand for satellite payload. Growth in investment by the defense sector for high speed communication services and navigation has resulted in market growth. Technological advancements, growing adoption of software defined satellites, and increasing trend of hosted payload is expected to further supplement the growth of this market. However, increasing concerns regarding space debris due to increasing launches of satellite payload coupled with stringent government regulations associated with satellite launch is expected to hamper the growth of the market. Furthermore, increasing adoption of satellite constellations for high speed communication services, and rising investments by governments and research organizations across the world are expected to offer growth opportunities during the forecast period.

The global satellite payload market is segmented on the basis of payload type, orbit type, vehicle type, payload weight, frequency band, application, and region. By payload type, it is fragmented into communication, imaging, and navigation. Based on orbit type, the market is classified into LEO, MEO, and GEO. On the basis of vehicle type, it is classified into small, medium, and heavy. The payload weight segment has been divided into low, medium, and high. Based on frequency type, the market is categorized into C band, Ka band, S and L band, X band, VHF and UHF band, and others. The application segment has been divided into telecommunication, remote sensing, scientific research, surveillance, and navigation. By region, the report is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Some leading companies profiled in the report include Airbus SE, The Boeing Company, Honeywell International Inc., Intelsat S.A., Lockheed Martin Corporation, Mitsubishi Electric Corporation, Northrop Grumman Corporation, Raytheon Technologies Corporation, Thales Group, and Viasat, Inc. 

Increase in adoption of small satellites

Small satellites are primarily used in civil, government, defense, and commercial sectors for earth observation and telecommunication applications. Small satellites are increasingly being used for high speed space based internet services. Organizations are increasingly using small satellites for technology demonstration, and scientific research and experimentation. Increasing use of small satellites among small and medium enterprises and startups is further expected to supplement the growth of this market during the forecast period.

Satellites are being miniaturized by using concepts such as advanced technology memory devices, System on Chip, MEMs/NEMS, SMD based systems, nano electrons devices, and solid state switches. Innovative manufacturing processes such as 3D printing are being implemented in satellite manufacturing to offer benefits such as short development time, reduced wastage of material, and lesser environmental impact.

Use of satellite payload in commercial applications

The commercial sector is taking advantage of the small, fast and inexpensive systems to gain access to space based services. Several startups are investing in nanosatellite constellations to offer high speed communication, navigation, and imaging services. This new ecosystem includes high efficiency and cost-effective satellite control and monitoring software, specialized subsystems, solar panels, batteries and rockets among other elements.

The term 'New Space' is being used to describe the increasing commercialization of space and the privatized funding of organizations. The international space is evolving with greater global competition and new entrants.  Large, medium-sized and startup businesses are investing in space technologies owing to flexible methodologies, short development, and lower prices. The market is witnessing innovative applications, emerging operators, and new sources of funding.  The  ‘New Space’ trend thrives upon technology and  business  model  innovations offering decreased costs,  new  products  and services  and  a  wider  customer  base, thereby increasing returns for companies and investors.

Technological Advancements

Advances in miniaturization of components, microelectronics, materials, and software has increased the adoption of satellites. Development of launchers for low cost small satellites has encouraged organizations across the world to invest in satellite payload. Satellite payload is increasingly being used for technology testing, Earth observation, and space exploration. Advancements in microelectronics such as light weight apertures, antennas, panels, transreceivers, control sensors, actuators, and multi spectral imagers are expected to increase the efficiency and processing power of satellite payload and make it easy to assemble and test. 

Growth in demand from the defense sector

Satellite payload is used in the defense sector for delivery of secure, reliable, and mission-critical communication services. Use of satellite services by federal agencies, military, and law enforcement organizations enhances contextual awareness, improves decision making, accelerates responsiveness, and enables emergency first responders to maintain peace, and offer services to citizens. Mission critical communication and intelligence enables law enforcement organizations to stream video, access data, and collaborate in real time. Satellite payload enables responders to improve real-time decision-making capabilities through integration of voice communications, data applications, and command centers. 

COVID-19 Impact Analysis 

The COVID-19 crisis has created uncertainty in the market, massive slowing of supply chain, falling business confidence, and increasing panic among the customer segments. Governments of different regions have already announced total lockdown and temporarily shutdown of industries, thereby adversely affecting the overall production and sales. 

The impact of the COVID-19 pandemic has resulted in delayed development and launches of satellite payloads and launching vehicles, slowdown in the operation of the key players, and shortage of components.

The pandemic has resulted in supply-chain disruptions causing delayed launches of satellites. Shortage of components owing to regulations associated with import and export of goods have also resulted in delayed manufacturing, and launch of satellites. Limited supply of liquid oxygen and liquid nitrogen owing to greater demand from hospitals to treat COVID-19 patients caused delay in the launch of satellites. The satellite launch services and satellite manufacturing has also been impacted by computer chip shortage, due to manufacturing shutdowns in China, South Korea and Taiwan. 

However, satellite services have been used to offer services such as voice, data and broadcast communications solutions during the pandemic. Satellite payload has enabled delivery of navigation, earth observation, and remote sensing services for businesses, government, and consumers across the globe. Various initiatives have been undertaken by governmental organizations and companies to offer community and employee support. The United States Department of Homeland Security (DHS) named satellite operations as an essential part of functioning critical infrastructure for responding to the challenges of COVID-19.

Key Benefits For Stakeholders

• This study presents the analytical depiction of the global satellite payload market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall satellite payload market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to the key drivers, restraints, and opportunities of the global satellite payload market with a detailed impact analysis.
• The current satellite payload market is quantitatively analyzed from 2020 to 2030 to benchmark financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

 Satellite Payload Market Report Highlights