LEO Satellite Market Projected to Grow to $19.8 Billion By 2026: Report
LEO satellite systems hold a huge potential for satellite data service providers, leading ResearchandMarkets to project that the LEO Satellite Market will grow from $9.6 billion in 2021 to $19.8 billion by 2026, at a CAGR of 15.5 percent.
The market is one of the most lucrative verticals of the space industry, according to the report. Factors such as versatility, low cost, advanced mechanics, ease of assembly and launch, mass production, and short lifecycles have driven investments in the 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.
The COVID-19 pandemic has caused significant damage to the economic activities of countries across the world. The manufacturing of LEO satellite systems, subsystems, and components has also been impacted. Although satellite systems are critically important, disruptions in the supply chain have halted their manufacturing processes for the time being.
Resuming manufacturing activities depends on the level of COVID-19 exposure, the level at which manufacturing operations are running, and import-export regulations, among other factors. While companies may still be taking in orders, delivery schedules may not be fixed.
The small satellite segment is expected to lead the LEO satellite market through the forecast period. 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.
LEO satellites are increasingly being adopted in modern communication technologies. The introduction of wireless satellite internet and development of miniature hardware systems 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.
The US is a lucrative market for LEO satellite systems in the North American region. The US government is increasingly investing in advanced LEO satellite technologies to enhance the quality and effectiveness of satellite communication. The increasing investment on satellite equipment to enhance defense and surveillance capabilities of the armed forces, modernization of existing communication in military platforms, critical infrastructure and law enforcement agencies using satellite systems, are key factors expected to drive the LEO satellite market in North America.
(Source: ResearchandMarkets news release. Image from file)