Satellite Bus Market Analysis

Satellite Bus Market Overview

Satellite Bus Market Size is expected to reach USD USD 9.27 Billion by 2030, registering a CAGR of 5.96% during 2024-2030. A satellite bus, also known as the satellite's body, houses all of the necessary satellite components and associated scientific equipment. Satellite buses are essential as they are responsible for taking the satellite equipment safely into space. The global satellite bus market has witnessed significant growth in recent years due to the increasing deployment of small satellites, rising demand for space data, and increasing demand for Earth observation imagery and analytics. However, the lack of clarity in government policies and the high cost of development and manufacturing are expected to restrict market growth to a certain extent.

COVID-19 Analysis

According to MRFR, the current projections of global satellite bus market growth till 2030 are expected to be lower than pre-COVID-19 estimates. The pandemic has had a devastating negative impact on the aerospace industry across the world. In the aerospace industry, due to a decrease in tax revenues with a decrease in GDP, it is also expected to decrease the investment in satellites for research & development in the next few years. Many governments across the globe are focused on controlling COVID-19 outbreaks in their countries. Hence, they are investing more in healthcare equipment and the development of vaccines. Therefore, the R&D expenditures on satellite buses are expected to be slightly lower for the next few years. The aerospace expenditure is expected to increase gradually during the forecast period after the pandemic ends. Moreover, due to a decrease in revenues of aerospace companies, it is also expected that there will be a setback for further investing in satellite buses. However, the growing demand for small satellites is anticipated to drive the growth of the market once the global economy plunges back. Thus, it is likely that the global satellite bus market will grow at a slower rate in 2020 and 2021; from 2022, it will increase gradually.

Market Dynamics

Drivers

• Increasing Deployment of Small Satellites

There has been a notable increase in the number of small satellites deployed due to their advantages. They have a lower cost of manufacturing and can be mass-produced more easily. Revolutionary technical advances have enabled the miniaturization of electronics, which has pushed the invention of smart materials, reducing the size and mass of satellites over time for manufacturers. Moreover, numerous start-ups in the aeronautics and space industry have taken a keen interest in satellite research and designing, creating a demand for small satellites and mini rockets. Companies such as OneWeb, Amazon, Telesat, and SpaceX, among others, have announced that they intend to launch over 40,000 satellites in the next few years. For instance, as of April 7, 2021, SpaceX launched over 1,443 Starlink Satellites, which are all small communication satellites. Similarly, there has been an uptake in small satellite deployment for defense purposes. Hence, owing to increasing investments in satellite constellation launches, the demand for small satellites is anticipated to increase, which is, in turn, drives the growth of the satellite bus market.

Opportunities

• Increasing Government Investments in Space Technology

There has been a significant increase in government investments in space technology across the globe. For many countries, government investments, especially in R&D and start-ups, are seen as a means of addressing societal challenges, facilitating independence from imports, and eventually becoming a global provider of solutions in a sector such as space. For example, Japan recently launched the cabinet-level Impulsing Paradigm Change by Disruptive Technologies Program (IMPACT) and the Innovation Network Corporation of Japan (INCJ), both of which can promote space start-ups.

Furthermore, the European Space Agency (ESA) reported a nearly USD 33 million investment in the advancement of Hall Effect Thruster (HET) propulsion technology and other company incubators. The Chinese Government committed USD 339 billion to start-ups in the country (not all of which will be focused on space). Such developments indicate that governments are compensating for the lack of private funding. Additionally, the Canadian government's Industrial Technologies office intends to provide UrtheCast with USD 13 million to aid in the ongoing production of its X- and L-band synthetic aperture radar (SAR) constellation on a smallsat platform. Thus, increasing government investments offer lucrative growth opportunities for the satellite bus market.

Restraints

• Lack of Clarity in Government Policies

Government policies at the national and international levels affect the evolution of the satellite environment and industry, either directly or indirectly. There is currently no robust global or domestic on-orbit regulation regime in place. In the US, strict regulations have been introduced to govern the launch and re-entry of satellites into the spectrum and remote sensing. However, on-orbit activities, including rendezvous and proximity activities, Space-based Space Situation Awareness (SSA), or RF mapping, are not covered by regulations.

Internationally, even though more than 70 countries are involved in satellite operations, no consensus has been achieved, and there are a few signs that a robust global regime would exist beyond the high-level directives in the Outer Space Treaty. While operators have expressed an interest in developing regulations that would provide investors with clarity, there are concerns about burdensome regulations that could force companies to relocate from one country to another. Given that the timelines of operators and policymakers do not always coincide, and the considerable efforts involved in establishing international community agreements, designing policies and regulations for the rapidly changing commercial space industry will be a challenge for the next ten years.

Cumulative Growth Analysis

• Growing Number of Satellite Launches to Bolster Market’s Growth Rate

The global satellite bus market growth is expected to be at a rate of 5.96% over the analysis period (between 2021 and 2030), primarily because of the growing number of satellite launches.

Segment Overview

Increasing Demand for Communication, Navigation, Mapping, and Safety Applications to Bolster Demand for Satellite Buses in Large Satellites

The global satellite bus market, based on satellite type, has been segmented into small satellite, medium satellite, and large satellite. Large satellites are very powerful and are used in several applications, including communication, navigation, mapping, and security. Thus, the large satellite segment is forecasted to register the highest growth rate in the coming years during the forecast period.

Growing Monitoring, Detection, and Assessment Applications to Drive the Demand for Earth Observation & Meteorology

Based on application, the global satellite bus market has been segmented into Earth observation & meteorology, scientific research & exploration, mapping & navigation, communication, and surveillance & security. The Earth observation & meteorology segment dominated the satellite bus market and is forecasted to generate the highest revenues in the coming years during the forecast period. Much of this can be ascribed to the growing usage of large satellites for a wide range of applications across several sectors, including environment, urban planning, agriculture, water resources, ocean resource exploration, forestry, rural development, mineral prospecting, and disaster management.

Regional Analysis

• North America Accounted for the Largest Market Share

North America dominated the global satellite bus market and is expected to continue doing so in the coming years during the forecast period. This market growth can be attributed to the presence of major manufacturers such as Northrop Grumman Corporation and Lockheed Martin Corporation. Moreover, increasing interest in space technology has led to the entry of several companies such as SpaceX and Virgin Orbit in the region, which further drives the regional market's growth. In addition, the increasing number of activities related to satellite launches in the region for various applications such as navigation, communication, internet connectivity, broadcasting, and others by space organizations such as the National Aeronautics and Space Administration (NASA) is also expected to boost the regional market growth. Furthermore, the increasing investment by the government for aeronautics and space research also provides significant growth opportunities for the players operating in the satellite bus market.

• APAC Races Ahead at the Fastest Rate as China and India Take the Lead

MRFR anticipates the APAC market to exhibit the fastest growth during the conjectured period. The Asia-Pacific market includes China, Japan, India, Australia, and the rest of Asia-Pacific. Factors such as increasing expenditure in the defense industry and technological advancements are expected to drive regional market growth. According to a study by the Stockholm International Peace Research Institute (SIPRI), China increased its military expenditure to USD 252 billion in 2020, while the military spending in India rose to USD 72.9 billion. Furthermore, the increasing use of surveillance and communication satellites in developing countries such as China and India to offer enhanced safety and communication to defense forces is expected to fuel the demand for satellite buses and drive the regional market growth.

Competitive Landscape

• Significant Investments by Players to Intensify Competition

The satellite bus market is projected to grow significantly in the coming years due to the increasing deployment of small satellites, rising demand for space data, and increasing demand for Earth observation imagery and analytics. The global satellite bus market is characterized by the presence of several global and regional vendors. The market is highly competitive, with all the players trying to gain maximum market share. Frequent changes in government policies, intense competition, and government regulations are the key factors that impact the global market growth. The vendors compete based on cost, product quality, and reliability.

List of Key Companies Covered in this Report

• Airbus SAS (Netherlands)


• Ball Corporation (US)


• Boeing (US)


• China Aerospace Science and Technology Corporation (China)


• Honeywell International Inc. (US)


• Israel Aerospace Industries (Israel)


• Lockheed Martin Corporation (US)


• Maxar Technologies Ltd. (US)


• Mitsubishi Electric Corporation (Japan)


• Northrop Grumman Corporation (US)


• Sierra Nevada Corporation (US)


• Thales Group (France)

Recent Developments