Satellite Launch Vehicle Market

The Satellite Launch Vehicle Market is estimated to be USD 15.7 billion in 2022 and is projected to reach USD 29.1 billion by 2027, at a CAGR of 13.1% from 2022 to 2027. The market is driven by factors such as different value chain levels for vendors, increased use of dedicated small satellite launch vehicles, reusable launch vehicles among others.

Satellite Launch Vehicle Market Forecast to 2027

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Satellite Launch Vehicle Market Dynamics:

Drivers: Rise in applications of small satellite launch vehicles.

Small satellite launch vehicles are designed to carry payloads weighing up to several hundred kilograms, typically for low Earth orbit (LEO) missions. These launch vehicles are becoming increasingly popular due to the rise in the number of small satellite constellations, which are being used for a variety of applications such as Earth observation, communications, and scientific research.

The importance of small satellites has grown significantly in recent years. Previously, only larger satellite payloads were launched into space, but as the industry has expanded, a wide range of players such as businesses, government agencies, universities, and laboratories have started sending satellites, most of which are smaller in size. The demand for launching small satellites has risen rapidly in the last decade, driven by the increasing need for space-based services such as data, communication, surveillance, and commerce. Satellite manufacturers and operators cannot afford to wait for months to launch their satellites or pay high transportation costs. As a result, organizations are now focusing on developing satellite constellations

Restraints: Oversaturation in launch vehicle market.

Access to space at a low cost is a critical enabler of the commercial space economy. With the help of competition, launch vehicle manufacturers are lowering their costs through improved manufacturing techniques and advanced technology. This has led to an expected increase in the amount of payload sent to orbit in the coming decade. Several companies aim to provide a ride for these payloads. Nevertheless, the small launch vehicle market is already oversaturated with over 75 companies with vehicles in various stages of development or operation. Hence, launch providers that can establish a market presence early and prove their ability to deliver customer payloads reliably have the best chance of long-term sustainability. New entrants later in the decade will need to make use of disruptive technology and/or offer significantly lower prices to capture market share.

Opportunities: Increased outsourcing of manufacturing activities.

In recent years, there has been an increased trend toward outsourcing manufacturing in the launch vehicle industry, due to several factors, including reduced manufacturing cost, increased efficiency, and access to specialized expertise.

One of the primary reasons for outsourcing manufacturing in the launch vehicle industry is cost savings. By outsourcing manufacturing, companies can take advantage of lower labor and material costs in other countries. This can lead to significant cost savings, particularly for large-scale projects.

Outsourcing can also increase efficiency in the manufacturing process. By working with specialized manufacturers, launch vehicle companies can benefit from the latest manufacturing technologies and processes, which can help to reduce production time and improve quality.

Another advantage of outsourcing manufacturing in the space industry is access to specialized expertise. Space companies may not have the in-house expertise or resources needed to manufacture certain components or systems, and outsourcing can help to fill these gaps.

However, outsourcing also comes with certain challenges and risks. For example, there may be concerns around intellectual property protection when it comes to launching vehicles, quality control, and communication barriers when working with manufacturers in other countries. It is important for launch vehicle companies to carefully consider these factors when deciding whether to outsource manufacturing and to work closely with their manufacturing partners to mitigate any potential risks.

Challenges: Reliability and safety of launch vehicles.

Ensuring the reliable and safe operation of satellite launch vehicles is a major challenge for the industry. The reliability and safety of launch vehicles are crucial, as a failure during launch can result in loss of the payload, as well as potential harm to people and property on the ground.

The Falcon 9 by SpaceX (US) has had several successful launches but has also suffered several high-profile failures. In 2015, a Falcon 9 rocket exploded during a routine test flight, resulting in the loss of the payload. More recently, in 2019, another Falcon 9 rocket suffered a first-stage failure during launch, resulting in the loss of the payload.

In order to address these challenges, companies are investing heavily in research and development to improve the reliability and safety of their launch vehicles. This includes the use of advanced materials and propulsion systems, as well as the development of robust and redundant safety systems. The company is also using data analytics and machine learning to improve the performance and safety of its launches.

Ensuring the reliable and safe operation of satellite launch vehicles remains a major challenge for the industry, and companies are constantly working to improve the technology and safety systems used in their launch vehicles.

Satellite Launch Vehicle Market Ecosystem

Raw material suppliers, component manufacturers, simulator manufacturers, distributors, and end users such as satellite manufacturers and government space agencies are key stakeholders in the satellite launch vehicle market ecosystem. Investors, funders, academic researchers, integrators, service providers, and licensing authorities serve as major influencers in the market. The strategy of securing contracts was widely adopted by leading players, such as SpaceX (US), United Launch Alliance, LLC (US), Northrop Grumman Corporation (US), Blue Origin (US), and Mitsubishi Heavy Industries (Japan) to enhance their presence in the market.

Based on vehicle, the medium to heavy (>350,000 Kg) segment is projected to lead the satellite launch vehicle market during the forecast period.

A medium to heavy launch vehicle is a rocket orbital launch vehicle capable of lifting above 20,000 kg (44092.4 lb.) of payload into Low Earth Orbit (LEO), Medium Earth Orbit (MEO), and Geostationary Orbit (GEO). Ariane 5, Proton-M, Delta IV Heavy, and others are some medium to heavy vehicles. The following are the advantages of medium to heavy launch vehicles. Increased Payload Capacity: Medium to heavy launch vehicles can carry much larger payloads than smaller rockets, allowing for larger and more complex satellites, telescopes, and other scientific instruments to be placed in orbit. Reduced Launch Costs: While medium to heavy launch vehicles are more expensive to build and operate than smaller rockets, their increased payload capacity can reduce the cost per unit of payload delivered to space. This is because fewer launches are required to deliver the same amount of payload, which can result in significant cost savings. Flexibility: Heavy launch vehicles can be used for a wide range of missions, including delivering payloads to low Earth orbit, the geostationary orbit, and beyond. This makes them a versatile tool for space exploration and commercial applications. Access to More Challenging Orbits: A launch vehicle needs significant energy to reach geostationary orbit. Heavy launch vehicles have the power and capability to reach these more challenging orbits, enabling greater access to space for a wider range of missions.

For instance, in December 2022, Arianespace SA (France) launched Europe’s most advanced weather-tracking spacecraft along with a pair of satellites. The triple payload totaling nearly 11,000 kilograms lifted off on a heavy-lift Ariane 5 rocket and was designated for the geostationary transfer orbit.

Based on launch, the reusable segment is projected to grow at the highest CAGR in the satellite launch vehicle market during the forecast period.

Reusable launch vehicles (RLVs) are satellite launch vehicles designed to be recovered and reused after launching a payload into space. Unlike single-use launch vehicles, which are discarded after a single-use, reusable launch vehicles can be flown multiple times, potentially reducing the cost of spaceflight by a significant margin.

Reusable launch vehicles typically consist of two main components: the rocket booster and the spacecraft or payload. The rocket booster is part of the vehicle that provides the initial thrust to launch the spacecraft into space, while the spacecraft or payload is the object being launched.

There are several types of reusable launch vehicles, including the Space Shuttle, the Falcon 9 rocket manufactured by SpaceX (US), and the New Shepard rocket manufactured by Blue Origin (US). These vehicles have been used for a variety of missions, such as launching satellites and sending astronauts to the International Space Station (ISS).

The advantages of reusable launch vehicles include reduced launch costs, increased efficiency, and reduced waste. Companies and space agencies can save on the costs of manufacturing and launching a new rocket for each mission by reusing the rocket booster. Additionally, reusable launch vehicles can be designed to be more efficient and reliable than single-use launch vehicles, which can increase the success rate of space missions.

Asia Pacific is expected to account for the largest share in the forecasted period.

Asia Pacific is estimated to account for the largest share in the forecasted period. Asia Pacific is the second-largest market for satellite capacity usage. There will be many more satellites built and launched in the coming years. The presence of various satellite providers in this region, such as Speedcast International (Hong Kong) and ITC Global (Australia), cater to the increasing demand for digital TV and Direct-to-Home (DTH) entertainment services. An increase in digital broadcasting services and a rise in demand for mobile broadband are key factors contributing to the growth of the satellite launch vehicle industry in Asia Pacific. Technological advancements in the field of launch vehicles have led to the development of reusable launch vehicles in terms of design, function, and integration. India and Japan have advanced their space knowledge and are moving toward military space programs, despite maintaining their commitment to using space for peaceful purposes. South Korea has also been constructing launch vehicles and Earth observation satellites as part of its space program.

Satellite Launch Vehicle Market by Region

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Top Satellite Launch Vehicle Companies - Key Market Players

The satellite launch vehicle companies are dominated by globally established players such as SpaceX (US), United Launch Alliance, LLC (US), Northrop Grumman Corporation (US), Blue Origin (US), and Mitsubishi Heavy Industries (Japan). The report covers various industry trends and new technological innovations in the satellite launch vehicle’ market for the period, 2018-2027.

Scope of the Satellite Launch Vehicle Market Report

Satellite Launch Vehicle Market Highlights

This research report categorizes the satellite launch vehicle market based on Vehicle, Payload, Orbit, Launch, Stage, Subsystem, Service and Region.

Recent Developments

• In January 2023, SpaceX’s Falcon 9 launched 49 Starlink satellites and D-Orbit’s ION SCV009 Eclectic Elena to low-Earth orbit.
• In January 2023, SpaceX’s Falcon 9 launched 56 Starlink satellites to low-Earth orbit from Space Launch Complex 40 at Cape Canaveral Space Force Station, Florida. This was the ninth launch and landing for this Falcon 9 first-stage booster.
• In November 2022, Rocket Lab has been awarded two contracts worth a total of USD14 million to provide satellite separation systems for Space Development Agency’s (SDA) Tranche 1 Transport Layer (T1TL) satellites.
• In October 2022, United Launch Alliance (US) successfully launches two key SES commercial c-band satellites. Atlas V launched SES-20 and SES-21 to deliver TV, radio, and critical data transmission services in support of the FCC’s 5G national transition.
• In February 2022, Northrop Grumman Corporation Corporation’s Space Logistics announced a launch agreement for its Mission Robotic Vehicle (MRV) spacecraft, and the sale of its first Mission Extension Pod (MEP).

Frequently Asked Questions (FAQ):

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