Satellite Launch Vehicle Market worth $29.1 billion by 2027
The Satellite launch vehicle market was estimated to be $15.7 billion in 2022 and is projected to reach $29.1 billion by 2027, at a CAGR of 13.1% during the forecast period according to a new report by MarketsandMarkets. Increasing space tourism, small satellite constellations, reusable launch vehicles are driving the growth of the market.
The <1,100 pound segment is expected to grow at the highest CAGR during the forecast period. Satellite payloads less than 1,100 pounds are generally classified as small satellites. Small satellites are low-weight and compact satellites primarily employed for remote sensing, Earth observation, and communication purposes. These satellites usually weigh less than 1,100 pounds. Small satellites are also used for in-orbit inspection of larger satellites. The growth of the <1,100 pound segment can be attributed to the increasing rise in the number of small satellite constellations.
At the same time, the small segment is projected to grow at the highest CAGR in the satellite launch vehicle market. The growth of this segment is attributed to the due to more targeted payload delivery: Small launch vehicles can deliver payloads to very specific orbits or trajectories, which can be important for certain scientific or commercial applications. They can also provide access to orbital regimes that are not easily reached by larger rockets.
Asia Pacific Region Expected to Lead the Satellite Launch Vehicle Market
The Asia Pacific region led the market in 2022. China and India are one of the major global players present in the Asia Pacific, which invests heavily in the development of launch vehicle technologies. Smaller Asian countries are expanding their space programs, purchasing or establishing SATCOM services, and exploiting the CubeSat revolution to build Earth observation satellites. Asian countries, such as Indonesia and Singapore use these developments to garner influence and clients for their launch vehicles.
Major players operating in the market include SpaceX (US), ULA (US), Northrop Grumman Corporation (US), and Blue Origin (US), Mitsubishi Heavy Industries (Japan) among others. These companies have well-equipped manufacturing facilities and strong distribution networks across North America, Europe, and Asia Pacific.
(Source: MarketsandMarkets news release. Images from file)