Space Robotics Market Size to Reach $6.55 Billion in 2030
The global space robotics market size reached $4.32 billion in 2021 and is expected to grow to $6.55 billion and register a CAGR of 4.7% by 2030, according to the latest analysis by Emergen Research. Increasing demand for space robots and associated services and navigation from the space mining industry is a major factor driving market revenue growth.
Increasing awareness regarding the benefits of deploying Low Earth Orbit (LEO) communication satellites is a key factor driving market revenue growth. LEO communication satellites are emerging as a lucrative option in many fields. In addition, international space authorities such as the National Aeronautics and Space Administration (NASA) believe the technology can significantly transform how we collect information and data.
The versatility in terms of the size, lower cost of installation, the scope for mass production, and shorter lifecycles are some of the essential factors driving rising investments in the space robotics market. LEO satellites are critical in wireless broadband due to significant improvements in speed and latency. Since these satellites move closer to the earth, they offer superior signal strength and require less power for transmission. In addition, compact LEO satellites are used in remote sensing, earth observation, and communications.
These offer the best options for scalability, thereby addressing the limitations of terrestrial networks. Space robotic systems are used in maintaining and installing critical components in these satellites. Meanwhile, major companies are investing in developing robotic arms that aid in reducing the time required for maintenance of satellites in LEO.
High volatility in prices of raw materials such as steel is a key factor restraining market revenue growth in the space robotics market. The robotics industry is significantly dependent on steel and aluminum components and materials for the manufacture of external as well as internal structures of space robots. However, imposition of export duties on steel products presents significant challenges to companies seeking to expand their capacity and operations in the robotics and space industries. In countries such as India, which is a major contributor to the global steel economy, the government has waived custom duties on the import of raw materials used in the steel industry, such as coal and ferronickel, and increased export taxes to keep local prices in check.
In addition, to increase domestic availability, the duty on iron ore exports was raised to 50%, and on a few steel intermediaries to 15%. This has majorly affected companies operating globally as steel is a critical material that is used in the manufacturing of space robots, and with the increasing number of initiatives being undertaken for development of space exploration programs, steel demand continues to rapidly increase.
Increasing application of robots in advancing in-spacing manufacturing is a robust trend expected to drive market revenue growth during the forecast period. In addition, major companies are investing in the development of robotic arms that perform complex tasks in orbit or on surfaces of planets or the moon. On 24 May 2022 for instance, Nanoracks LLC, which is a leading manufacturer and provider of space technologies headquartered in Houston, Texas, U.S., announced launching the outpost mars demo-1 experiment which includes a small articulating robot arm that is housed on SpaceX's Transporter 5 rideshare.
It will be used to demonstrate metal cutting in orbit. This is a significant achievement because it aids in converting used parts of rockets ejected after various stages of launch into space habitats. In addition, the experiment is a part of the outpost program by Nanoracks and will demonstrate future possibilities in building space infrastructure.
(Source: Emergen Research news release)