Global LEO Satellite Market Size to Grow to $19.8 billion by 2026
The global LEO satellite market is projected to grow from $9.6 billion in 2021 to $19.8 billion by 2026, at a CAGR of 15.5 percent, according to a new report from ReportsnReports.
LEO satellite systems hold a huge potential for satellite data service providers, small sat service providers, remote sensing service providers, technical service providers, and investors. The market is one of the most lucrative verticals of the space industry. Factors such as versatility, low cost, advanced mechanics, ease of assembly and launch, mass production, and short lifecycles have driven investments in the global LEO Satellite market. The amount of satellite data and the range of applications for that data will continue to grow in the future as new technologies develop and more satellites come online.
Major manufacturers in this market are based in North America and Europe. L3Harris Technologies (US), Honeywell International Inc.(US), Airbus (Germany), SpaceX (US), Northrop Grumman (US) are among a few leading players operating in the LEO satellite market. North America is expected to lead the market segment.
Based on satellite type, the small satellite segment is expected to lead the LEO satellite market from 2021 to 2026. A small satellite is a type of low mass and compact satellite primarily employed for remote sensing, Earth observation, and communication purposes. These satellites usually weigh less than 500 kg (≈1,100 pounds). Small satellites are used for in-orbit inspection purposes of larger satellites. These are also used as test carriers for newly developed components that are to be installed on a much critical satellite. However, small satellites are prone to operational challenges that include lack of power storage and propulsion system, owing to their small dimensions. In January 2022, satellite communications provider Starlink launched a part of its constellation of small satellites in LEO.
The communication segment is expected to lead the global LEO satellite market, due to the introduction of wireless satellite internet and the development of miniature hardware systems which are exploiting numerous opportunities in the field of satellite-enabled communication. A rise in R&D activities for communication-related missions is expected to offer enhanced quality communication systems with the help of highly sophisticated miniaturized onboard nano, micro, and mini subsystems, coupled with advanced mission-compatible ground-station technology.
(Source: ReportsnReports news release. Image from file)