Global Satellite Payload Market 2023-2030

Global Satellite Payload Market 2023-2030

Global Satellite Payload Market Size, Share & Trends Analysis Report by Payload Type (Communication, Imaging, Navigation, Radar), by Orbit Type (Low Earth orbit (LEO), Medium Earth orbit (MEO), Geostationary equatorial orbit (GEO)) and by Application (Telecommunication, Remote Sensing, Scientific Research, Surveillance and Security, Navigation, Meteorology, Communication) Forecast Period (2023-2030)

The satellite payload market is anticipated to grow at a CAGR of 7.2% during the forecast period (2023-2030). According to the 2022 data of the Satellite Industry Association, the overall revenue of the satellite industry in 2022, was $281 billion which is 73% of the space economy. The revenue of satellite manufacturing was $15.8 billion in 2022. growing demand for satellite-based services, technological advancement in the industry, and growing investment are key factors contributing to the growth of the satellite payload market. The COVID-19 pandemic has created obstacles for the majority of major space manufacturing companies, impeding mission deployments, and causing delays in delivering new products as a result of disruptions in the supply chain. In contrast, government contractors in Asia, Europe, and North America have received substantial administrative and financial assistance from space agencies, including expedited and upfront payments.

Segmental Outlook

The global satellite payload market is segmented by type and end-user. By payload type, the market is sub-segmented into communication, imaging, navigation, and radar payload. By orbit type, the market is sub-segmented into Low Earth orbit (LEO), Medium Earth orbit (MEO), and Geostationary equatorial orbit (GEO). By application, the market is sub-segmented into telecommunication, remote sensing, scientific research, surveillance and security, navigation, meteorology, and communication applications. The commercial sector has grown significantly during the forecast period. According to the Satellite Industry Association, in 2022, 2,325 satellites were launched out of which 84% are for commercial communications and 10% are for remote sensing purposes. Also in 2021, The commercial satellite industry continued to be dominant, increasing to $279 billion and accounting for 72% of the global space business. Globally, with increasing demand for satellite-based services, reducing cost of satellite launches, and technological advancements in the industry which are making satellites much smaller, and more powerful, the commercial satellite payload industry is also growing. For instance, in September 2023, SpaceX launched 21 Starlink satellites on Falcon 9 rocket. According to the company, till this launch, there are over 4,600 operational Starlink satellites in orbit and the company has planned to reach as many as 42,000 satellites over the long term.

The Defense Sector is Expected to Contribute Significantly to the Global Satellite Payload Industry

In military satellite payloads and subsystems market is expected to grow continuously. The military depends on satellite payloads to improve capabilities for intelligence, surveillance, and communications. These payloads can be of multiple types, including optical imaging, radar, electronic warfare, and telecommunications. Each variant of payload presents distinct capabilities that are valuable for a broad spectrum of missions. With changing geopolitical conditions and rising security threats, military organizations globally are making significant investments in the development of advanced satellite systems with improved capabilities to enhance situational awareness, enable information sharing, and increase operational efficiency. According to the Satellite Industry Association, in 2022, out of total satellite launches, 2.0% were for military surveillance purposes. Additionally, increased collaboration between military and private organizations is also contributing to the growth of the satellite payload industry. For instance, in February 2023, CACI International Inc. signed a five-year cooperative research & development agreement (CRADA) with the US Army Space and Missile Defense Technical Center (USASMDC-TC) for the development of advanced payload technologies, space sensor applications, and resilient Positioning, Navigation & Timing (PNT).

Regional Outlook

The global Satellite payload market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among regions, North America holds a significant share of the global satellite payload market. North American region has a significant presence in the global satellite payload industry. The region has a significant presence of market players such as SpaceX, NASA, and Lockheed Martin among others. The US satellite manufacturing industry holds 64% of the global revenue, according to the Satellite Industry Association. Also, increasing demand for satellite payloads for military and commercial applications, growing investments in the regional space industry, and rapid technological advancements are driving growth for the regional satellite payload industry. For instance, in July 2023, Amazon announced plans for a $120 million satellite processing facility for its internet constellation. The company is aiming to launch and operate more than 3,200 satellites in low Earth orbit as part of a system that includes customer terminals and a ground network.

The Satellite Payload Market is Expected to Grow Significantly in the Asia Pacific Region

Asia Pacific is expected to be the fastest-growing market for the satellite payload industry. Owing to the economic growth of major regional economies such as India and China, the growth of regional private commercial space startup ecosystem increases investments, and growing recognition by regional governments of space as a vital part of national security. According to Invest India, India constitutes 2% to 3% of the global space economy and is expected to enhance its share to more than 10% by 2030. Also, according to the European Space Agency, in 2021, commercialization in the Chinese space sector has grown over the past 7 years, with well over 100 companies created, and around ¥ 40 billion ($6.5 billion) raised by Chinese commercial space companies. Also, with growing investments, the region has seen rapid technological advances and support from government organizations that are contributing satellite payload industry in the region. For instance, in September 2023, Bengaluru-based deep tech player SatSure Analytics' India subsidiary KaleidEO deployed edge computing in space by generating actionable insights from an image taken by an orbiting satellite in real-time. In July 2023, Bengaluru-based space startup Pixxel won a grant from Innovations for Defense Excellence under the Ministry of Defense (iDEX) for the Mission DefSpace Challenge under iDEX Prime (Space), to manufacture miniaturized multi-payload satellites for the Indian Air Force. According to the company, this grant will help Pixxel to develop small satellites of up to 150 kgs for electro-optical, infrared, synthetic aperture radar, and hyper spectral purposes.

Market Players Outlook

The major companies serving the global satellite payload market are Honeywell International Inc., The Boeing Company, Airbus SE, and Indian Space Research Organization (ISRO) among others. With the growing demand for satellite payloads from private and government organizations, companies are focusing on research, development, and market expansion via collaboration mergers and acquisitions. For instance, in November 2023, MDA completed its acquisition of SatixFy Space Systems UK (SSS) to enhance its presence in the digital satellite communications market. The SSS division, located in the UK, will be incorporated into MDA's UK subsidiary, MDA UK. This development is expected to help MDA's market growth in the UK and introduce in-country capabilities for satellite payload production.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the satellite payload market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.