Low Earth Orbit Satellite Markets - Global Forecast to 2030: Rising Demand for Analytics and Imagery from Earth Observation and High-Speed and Low-Cost Broadband
Dublin, April 27, 2023 (GLOBE NEWSWIRE) -- The "Low Earth Orbit Satellite Market By Type, By Frequency, By Sub-System, By Application, By Supply Mode, By End-Use, and By Region Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.
The global market for Low Earth Orbit (LEO) satellites had a size of USD 9.12 billion in 2021 and is projected to experience a revenue Compound Annual Growth Rate (CAGR) of 15.2%
The market growth is being propelled by several factors such as increasing demand for analytics and earth observation imagery, advancements in satellite network technology, and the potential applications of laser-based space optical communications and software-defined technology in space missions.
LEO satellites are electronic devices that orbit the Earth at lower altitudes than geosynchronous satellites. They are commonly used for military reconnaissance, spying, communications, and imaging purposes, and are often less expensive to launch compared to geosynchronous satellites because they require less rocket power.
However, LEO satellites experience higher aerodynamic drag due to the denser atmosphere they pass through. Unlike geosynchronous satellites, LEO spacecraft can follow different paths around Earth, offering more potential paths and making LEO a popular orbit.
Several companies are investing in LEO satellite technology, with Amazon planning to launch Project Kuiper - a LEO satellite constellation with over 3,000 satellites, and French satellite operator Eutelsat merging its 36 geostationary satellites with OneWeb's 648 LEO satellites to create a global satellite connectivity leader.
The demand for LEO orbit satellite applications has increased due to the commercialization of CubeSats, a type of nanosatellite research spacecraft. CubeSats are small devices with specified dimensions of 10cm x 10cm x 10cm, and have been developed for various scientific, commercial, and government missions.
The number of CubeSats deployed has rapidly expanded due to the use of space stations for technology development. One of the objectives of CubeSats is to track debris in low-earth orbit.
Driving force: Increasing demand for affordable and high-speed broadband
The demand for high-speed and low-cost broadband is on the rise in sectors such as mining, oil, gas, energy, retail, and banking, leading to a surge in demand for LEO (low-earth orbit) satellites.
Additionally, LEO satellites are becoming increasingly popular as an alternative for rural internet connectivity. With internet coverage lagging in most parts of the world, LEO satellites are expected to bridge the digital divide and connect the disconnected.
For example, the European Union plans to invest 6 billion Euros (approximately USD 5.77 billion) in a LEO satellite system for its members, and companies such as SpaceX's Starlink and Amazon's Project Kuiper are working on similar technology. LEO satellites can also provide high-speed internet access in areas where traditional ground infrastructure is difficult to establish.
Restraining force: Connectivity issues and technical complexity of LEO satellites
Satellite communication relies entirely on radio wave propagation, which can be disrupted inside buildings or closed structures where the horizon is obstructed. Technical limitations such as dead spots in the network, low network precision, and the need for retracted antennas also pose challenges.
Additionally, LEO satellites suffer from air drag, leading to a shorter lifespan due to orbit loss, and a shorter dwell period due to their high apparent angular velocity. These factors limit the growth of revenue in the market.
The global Low Earth Orbit (LEO) satellite market has been divided into several segments based on type, frequency, sub-system, application, and end-use.
In terms of regional analysis, the North American market holds the largest revenue share in the global LEO satellite market. This is attributed to the strong network infrastructure for mission-critical applications, high investments in technology, well-established research facilities, and a large consumer base for advanced products in the U.S. and Canada.
The U.S. is the most potential country for growth prospects due to its large spending on defense infrastructure, increasing investments in LEO satellite technologies, and rising demand for high-speed broadband internet. The Asia Pacific market is expected to register a fast revenue CAGR due to booming digitalization trends and increasing initiatives to manufacture efficient miniature satellite components in countries such as China, Japan, and India.
The European market is expected to register steady revenue growth due to rising demand for high-speed and low-cost broadband and growing advancements in satellite technology, particularly in the UK, Germany, and France. The European Union's announcement of investing in a 6 billion euro low-earth orbit satellite system for member states is expected to drive growth in this market by providing government and commercial internet services and enabling quantum-secured internet connections.
The global Low Earth Orbit (LEO) satellite market has a moderately consolidated competitive landscape, with a few major companies operating on global and regional levels. These companies are focused on product development and forming strategic alliances to expand their product portfolios and strengthen their presence in the global market.
Recent developments in the market include SpaceX launching the latest batch of 46 Starlink satellites into LEO from California's Vandenberg Space Force Base on August 30, 2022, with the Falcon 9 first stage booster completing its sixth launch and landing. Airbus and OneWeb signed a distribution partnership agreement on December 16, 2021, to deliver military and government LEO satellite communication services.
Meanwhile, Honeywell and Skyloom announced a collaboration agreement on December 14, 2021, to build a production facility for optical terminals that will allow satellite operators to provide high-capacity, high-data-rate internet connectivity to subscribers worldwide. These companies will work together to deliver speedy design innovation, scalability, dependability, and on-time manufacture for their commercial and military customers.
Key players in the market include Honeywell International Inc., Lockheed Martin Corporation, Airbus, L3Harris Technologies, SPACEX, Telesat, Northrop Grumman Corporation, Boeing, Thales Group, Kepler Communications Inc., and Globalstar.
Low Earth Orbit (LEO) Satellite Market Segmentation & Impact Analysis
Market drivers' analysis
Rising demand for analytics and imagery from earth observation
Rising demand for high-speed and low-cost broadband
Growing advancements in satellite network
Potential uses for laser-based space optical communications
Utilizing software-defined technology to alter space missions
Market restraints analysis
Worries about space debris
Connectivty issues and complexity of LEO satellites
Technical limitations and high cost
Porter's Five Forces Analysis
Competitive Metric Space Analysis
Price Trend Analysis
Covid-19 Impact Analysis
Global Recession Influence
Honeywell International Inc.
Lockheed Martin Corporation
Northrop Grumman Corporation
Kepler Communications Inc.
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