Satellite Propulsion Market Worth $5.19 Billion by 2030: Report
Advancements in Propulsion Technology Driving Growth
The Satellite Propulsion market, which was estimated in terms of market size to be $2.60 billion in 2024, could reach $5.19 billion by 2030, at a CAGR of 12.2% according to a new report by MarketsandMarkets.
The satellite propulsion market is driven by the increasing advancements in propulsion technology. Manufacturers are focusing on developing efficient and cost effective propulsion technologies such as electric propulsion, which lowers the fuel mass, and increases payload capacity. Additionally, the demand for sustainable propulsion technology is driving the development of green propulsion which addresses environmental concerns and complies with regulations. Additionally, increasing deployments of satellites and growing investments in space exploration is also contributing to the Satellite Propulsion market.
The small platform segment is projected to grow at highest CAGR due to growing demand for low Earth orbit (LEO) constellations. Projects such as SpaceX's Starlink, Amazon's Kuiper, and OneWeb require thousands of small satellites, further driving the demand for efficient propulsion systems. Additionally, small platforms can be quickly designed, built, and launched, meeting the increasing need for scalable solutions. These small satellites are used for short-term missions and specific applications, eliminating dependency on large infrastructure.
The electric segment will lead the satellite propulsion market during the forecast period. Electric propulsion technology is preferred for small satellites as it uses less propellant than chemical propulsion, reducing the operational cost of satellites. Advancement in material and power sources are another major factor contributor towards making electric propulsion efficient. Additionally, the increasing deployment of small satellites has increased the demand for lightweight propulsion systems driving the electric propulsion market.
By region, the Asia Pacific is expected to hold the highest market share during the forecast period. This growth is attributed to the increasing investment towards space programs and government initiatives by countries like China, India, Japan, South Korea and Australia. The demand for broadband internet, television broadcasting, and earth observation applications is driving investments by the commercial sector in the region. Additionally, the presence of several space organizations such as ISRO, CNSA, iSpace and AstroScale in the region drives the innovation in propulsion system technologies, propelling the satellite propulsion industry in the region.
Northrop Grumman (US), Safran SA (France), Thales Alenia Space (France), L3Harris Technologies, Inc. (US), and Airbus (France) are the major key players in the Satellite Propulsion companies. These companies have strong distribution networks across regions like North America, Europe, Asia Pacific, Middle East, Africa, and Latin America.