Communications and Defense Fuel Growth in LEO Satellite Market
The global LEO satellites market is expected to grow from $3.50 billion in 2021 to $4.13 billion in 2022 at a compound annual growth rate (CAGR) of 18.2%, according to a new report from Research and Markets. The growth is mainly due to the increasing adoption of low earth orbit satellites in various sectors, rising importance across communications and defense industries, increasing awareness regarding new forms of technology, integration of IoT, machine learning, rapid advancements in the aerospace, robust government support, increasing preferences towards software-defined payloads for communication satellites, miniaturization of satellite, and growing advancements in payload systems. The market is expected to reach $9 billion in 2026 at a CAGR of 21.5%.
North America was the largest region in the LEO satellite market in 2021. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The increasing adoption of low earth orbit satellites in various sectors is expected to increase the growth of the low earth orbit (LEO) satellites market growth in the forecast period. Low earth orbit satellites serve an important role in earth observation for satellites in the field of farming and are one of the most important enablers of the planet's protection, safety, and longevity. Earth observation is a way of observing and measuring biological, chemical, and physical factors on a global scale using data from low earth orbit satellites.
LEO Satellite Market Driven in Part by World Population Growth
According to the United Nations, the world population is expected to reach 9.7 billion by 2050, resulting in a 69% increase in overall agricultural production between 2010 and 2050. For instance, in November 2020, the Indian Space Research Organisation (ISRO) announced the launch of an earth observation satellite for agriculture, forestry, and disaster management support. Companies such as Planet and Satellogic are developing smart farming solutions by launching small and nanosatellites. Thus, the rising adoption of low earth orbit satellites in agriculture will enhance the growth of the low earth orbit satellites market.
The launch of advanced low earth orbit satellites is gaining significant popularity in the LEO satellite market. Major players operating in the low earth orbit satellite sector are focusing on satellite launches to provide global connectivity. For instance, in April 2021, OneWeb, a UK-based low earth orbit satellite communications operator launched 32 LEO satellites from Vostochny cosmodrome in Russia. With the recent launch, OneWeb now has a total of 182 satellites in orbit. These would be part of OneWeb's 648 LEO satellite constellation, which will provide worldwide connectivity at fast speeds and with low latency.
(Source: Research and Markets news release. Infographic provided by Research and Markets. Image from file)