Space Service Market Could Reach $67.9 Billion: Report
Allied Market Research Forecasts Nearly 9 Percent Annual Groth Through 2033
The global space service market size was valued at $30.2 billion in 2023, and is projected to reach $67.9 billion by 2033, growing at a CAGR of 8.8% from 2024 to 2033 according to a new report from Allied Market Research. Space service refers to a broad range of commercial, governmental, and defense-related activities that utilize space-based infrastructure, technologies, and operations to provide services on Earth and beyond, including activities in low Earth orbit (LEO), and geostationary orbit (GEO). These services include satellite communication, Earth observation, navigation, space exploration, space tourism, and in-orbit operations, supporting various industries, including telecommunications, defense, scientific research, and commercial enterprises.
One of the most significant drivers of the space service market is the rising demand for satellite-based services, including telecommunications, earth observation, and navigation. However, high costs associated with space missions and satellite deployments and regulatory and legal challenges in space operations are anticipated to hamper the growth of the market during the forecast period. Moreover, rise in demand for space tourism and commercial spaceflight and the expansion of in-orbit services are expected to offer lucrative opportunities for the market in the future.
The satellite services segment held the highest market share in 2023, owing to the rise of high-speed satellite internet. Companies such as Starlink, OneWeb, and Amazon's Project Kuiper are launching mega-constellations to provide global broadband connectivity, especially in remote and underserved areas. However, the space exploration services segment is expected to witness the highest CAGR of 7.8% during the forecast period. This is due to government-backed missions, commercial spaceflight initiatives, and advancements in deep-space technologies.
Communication satellites accounted for a dominant market share in 2023, due to a rise in demand for high-speed internet, military communication needs, and the expansion of 5G networks. But the Earth observation satellites segment is expected to witness the highest CAGR of 10.3% during the forecast period driven by its applications in weather forecasting, disaster management, environmental monitoring, and military reconnaissance.
The small payloads segment accounted for the largest market share and is anticipated to maintain its dominance till 2033, and the same segment is expected to witness the highest CAGR of 9.3% during the forecast period fueled by lower launch costs, shorter development cycles, and advancements in miniaturized technology. Small satellites require less power and resources, making them cost-effective for both commercial and governmental applications. The reusable launch vehicles (RLV) segment accounted for the largest market share and is anticipated to maintain its dominance till 2033, and the same segment is expected to witness the highest CAGR of 9.2% during the forecast period fueled by economic efficiency, sustainability, and increasing demand for satellite deployment. With the rise of mega constellations in low Earth orbit (LEO), companies need frequent and affordable launches, which RLVs provide. In addition, government space agencies are adopting reusable launch systems for crew and cargo missions to the International Space Station (ISS) and future lunar bases.
North America accounted for the largest market share and is anticipated to maintain its dominance till 2033, owing to high government spending, strong private-sector participation, and technological advancements. The region is home to leading space agencies such as NASA and major commercial space companies such as SpaceX, Blue Origin, and Boeing. However, the Asia-Pacific is expected to portray the highest CAGR of 9.8% during the forecast period, driven by increasing government investments, expanding private-sector participation, and technological advancements. Countries in the region are heavily investing in satellite programs, launch capabilities, and space exploration initiatives.