Space Launch Services Market to Reach $26.16 Billion by 2027
The global space launch services market size is projected to reach $26.16 billion by the end of 2027. The massive investments in space research programs are consequential to increasing breakthrough concepts in the past few years. The presence of several large scale companies will contribute to market growth.
According to a report published by Fortune Business Insights, titled “Space Launch Services Market Size, Share & Industry Analysis, By Payload (Satellite, Stratollite, Cargo, Human Spacecraft, and Testing Probes), By Orbit Type (GEO, Beyond GEO, LEO, and MEO), By Launch Platform (Land, Air, and Sea), By Vehicle Type (Medium-to-Heavy Lift Launch Vehicle and Small Lift Launch Vehicle), By End User (Commercial and Military & Government), and Regional Forecast, 2020-2027” the market was worth $12.67 billion and will exhibit a CAGR of 13.35% during the forecast period, 2020-2027.
Space launch services are a series of activities associated with space satellites that include seamless integration of all components and services to ensure a smooth launch phase. The massive investments in these programs are consequential to the rising space research activities across the world. The increasing use of technologically advanced concepts in these programs has been hugely beneficial not just for the large scale companies, but also for startups looking to fit-in in an otherwise competitive space. The rising government budget allocations for space programs will create a massive growth platform for the companies operating in the market. The integration of concepts such as artificial intelligence and 3D modeling for satellite designs will aid the growth of the market in the coming years.
Due to an increase space research activities across the world, there has been an increase in the demand for space launch services in the past few years. The increasing demand for these services has resulted in a strong market competition. It is observed that large scale companies are looking to collaborate with other businesses with the aim of acquiring a wider consumer base. In August 2020, Ariane Group SAS announced that it has signed a contract with Northrop Grumman and Maxar Technologies for the launch of a new space satellite. The companies will work on launching Flight VA253 through the Ariane 5 launcher. An increasing number of such company collaborations will have a huge impact on the growth of the overall market in the forthcoming years.
The complex design and development of the 1st stage space launch vehicle restraints the growth. Companies such as SpaceX, NASA, United Launch Alliance (ULA), and Blue Origin focus on research and development for cost-effective and lightweight propulsion systems for the launch vehicle. Heavyweight creates more friction, leading to high heat generation during vertical landing from the earth's atmosphere to its surface. This is the major concern for the engineers. Thus, research in the design aspect is focused, and the use of lightweight material such as 3D printed components is considered for component design.
The GEO segment is expected to be the fastest-growing segment during the forecast period. This growth is attributable to the increasing demand for observatory space research and laboratory research. GEO based satellites provide services for the Mars mission, the Moon mission, and several other asteroid missions.
Among all regions, the market in Asia Pacific is projected to emerge dominant in the coming years. The increasing space research programs and rising number of space satellites that have been launched by companies based in this region will have a direct impact on the growth of the regional space launch services market. The presence of several large scale companies in this sector will have a huge impact on the growth of the regional market. The market in North America will also derive growth from the presence of numerous large scale space organizations, especially in the United States. As of 2019, the market in North America was worth $4.88 billion and this value is projected to rise at a considerable
(Source: Fortune Business Insights news release. Infographic provided)