Satellite Manufacturing Market to Reach $27.3 Billion
The global satellite manufacturing industry was pegged at $16.2 billion in 2021, and is expected to reach $27.3 billion by 2031, growing at a CAGR of 5.7% from 2022 to 2031, according to a new report from Allied Market Research. The report offers a detailed analysis of changing market trends, top segments, key investment pockets, value chain, regional landscape, and competitive scenario.
Rising technical innovation, development of automation technologies, and lower launch costs have boosted the growth of the satellite manufacturing market. However, strict government regulations, increase in space debris, and interference in satellite data transmission hinder the market growth. On the contrary, development in satellite mission technologies and surge in demand for space data would open new opportunities in the future.
By application, the communication segment held the largest share in 2021, accounting for nearly half of the market due to rising demand for connectivity services across the world. However, the Earth observation segment is expected to register the highest CAGR of 6.4% during the forecast period, owing to increase in demand for monitoring and inspection solutions by defense and commercial organizations.
LEO Segment of the Satellite Manufacturing Market has Highest Predicted CAGR
By satellite type, the LEO segment is likely to see the highest CAGR of 6.3% from 2022 to 2031. In addition, the segment held the largest share in 2021, contributing to more than two-fifths of the satellite manufacturing market. By size, the medium segment held the largest share in 2021, accounting for more than two-fifths of the market due to the surge in launches of satellites for high-performance applications in space research, communication, and observation fields. However, the small segment is expected to register the highest CAGR of 10.3% during the forecast period, owing to the rise in focus of telecommunications and space organizations toward deploying small satellite constellations.
North America held the largest share of the market in 2021, accounting for more than two-fifths of the market in light of increase in adoption of advanced satellite services among the civil, defense, and space industries in the region. However, the market across Asia-Pacific is projected to manifest the highest CAGR of 6.4% during the forecast period, due to increased investment in deploying satellite technologies in countries such as China and India.
(Source: Allied Market Research news release. Images from file)