LEO Satellite Propulsion Market on 10-Year Growth Trend

The LEO satellite propulsion technology market is expected to reach $13.2 billion by 2031, with a CAGR of 6.98% during the forecast period, according to data released by Reportlinker.com.

According to the report, the increasing demand for building efficient propulsion systems at a low cost are key drivers for the forecast growth of the LEO satellite propulsion technology market.

The commercial end user segment is estimated to dominate the market due to the increasing development of small satellite constellations for communication, remote sensing, Earth observation, and navigation by commercial industries. The market is currently flourishing with the development of small satellites for communication missions. Companies and space agencies aim to develop long-range, high-capacity, and cost-effective communication constellations using small satellites.

Electric propulsion is the most prominent propulsion system contributing to the LEO satellite propulsion technology market. It is anticipated that, by 2031, the market penetration of such satellites will grow to more than 40% in the overall satellite launches. However, the high cost, development complexity, and low thrust capability are restraining the growth of the electric propulsion system segment. Still, technological advancements are anticipated to overcome these challenges, and electric propulsion systems are anticipated to witness huge growth.

The 450-1,300 pound category is one of the leading segments and is expected to grow year by year due to the increase in small satellite constellations from various key manufacturers such as SPACE X, Amazon, Cloud Constellation, Urthecast, and ISRO, among others.

With the growing number of LEO-based satellite launches, it is anticipated that the requirement for thrusters’ components will grow in the upcoming years. North America is expected to account for the highest share of the global LEO-focused satellite propulsion technology market, owing to a significant number of companies based in the region, increased spending by government and commercial organizations such as the National Aeronautics and Space Administration (NASA), Aerojet Rocketdyne, Ariane Group, Exotrail, Space X, and Enpulsion for LEO-based propulsion systems.

(Source: Reportlinker.com news release. Image from file)