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Revenue opportunities for satellite manufacturing market to cross $366bn: Frost & Sullivan

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August 14, 2019
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      Home News Satellite/Comms

      Revenue opportunities for satellite manufacturing market to cross $366bn: Frost & Sullivan

      Staff Writer by Staff Writer
      August 14, 2019
      in Satellite/Comms
      ShareTweetPostEmail

      The report states that there is a gap between satellite launch demand and the supply of launch services with an average launch wait of six months to two years for satellite operators.

      According to Frost & Sullivan, new market entrants, platforms, services and business models are disrupting the global space industry.

      To serve an evolving market, value chain players are developing flexible, affordable, dedicated, competitive and complementary solutions for end customers to sustain significant growth opportunities.

      Frost & Sullivan forecasts the total revenue opportunities for the global satellite manufacturing market to 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.

      Commenting on the analysis, Arun Kumar Sampathkumar, Industry Manager, Space at Frost & Sullivan said: “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.”

      The report found that 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,” added 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) orbits. This will result in both new installation and recurring replacement mission demand for manufacturing communication satellites.

      Growth opportunities in this market include, the manufacturing sector utilising COTS technologies, additive manufacturing, Industrial IoT (IIoT), and serial production with systems and satellite platform standardisation; the launch services sector focussing 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 utilise automated aggregator platforms as well as standarise mission control processes and systems; Earth observation participants developing affordable standard platforms for value-added service providers; satellite communication players focussing on network standardisation and integration, including terrestrial and capacities in LEO, MEO, and GEO.

      ‘Consumerisation’ of Space has taken a leap forward with end-users demanding seamless connectivity, actionable geospatial intelligence, and advanced sensing capabilities to drive new business propositions and solutions. Disruptions impacting the ecosystem are driven by technology, manufacturing processes and business models from traditional players like SES, SpaceX and Airbus, and new space participants like RocketLab, EarthNow, OneWeb and SpireGlobal. 

      Global Space Industry Outlook, 2019 and Beyond is the latest addition to Frost & Sullivan’s Space research and analysis available through the Frost & Sullivan Leadership Council, which helps organisations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

      Tags: Frost and SullivansatelliteSatellite Communications

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