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The global satellite manufacturing & launch market will register a CAGR of over 4% by 2023.
The demand for satellite networks and services for commercial applications has increased. The growing utilization of commercial satellite platforms for dual purposes, which include military and civil, is also providing growth opportunities to the market in focus.
To ensure seamless connectivity between terrestrial and satellites, satellite transport conduit is being integrated into the overall communication map. This will provide new opportunities to extend satellite services in urban and rural areas to cover existing white zones and ensure seamless connectivity plans for a variety of users, including emergency services.
Also, regulatory relaxation on the sales of high-resolution satellite images for commercial purposes is one such measure, which provides a new opportunity for growth of the market. Such developments are anticipated to drive the growth of the market during the forecast period.
Reduction in Associative Launch Cost
The associative cost of satellite systems is significant, and most of the cost accounts for launch and orbital placement. The development of all-electric satellites has eliminated the need for conventional power systems, which accounted for additional load for launch vehicles. Thus, multiple all-electric satellites can be accommodated on a single launch vehicle such as Falcon 9, and Ariane 5, which has significantly decreased the associative launch cost.
Several companies that offer launch services for satellites are investing in R&D to develop cost-effective launch systems. The highly competitive nature of the satellite industry is also a critical factor that is decreasing the cost of launching satellites. Thus, the reduction in price will increase the number of satellites launches, which will increase the revenue generated by the market during the forecast period.
Presence of Satellite Orbital Debris
Space debris comprises natural (meteoroid) and artificial (human-made) fragments. Artificial debris could be non-functional spacecraft, abandoned launch vehicles, mission-related debris, and fragmentation debris. Spacecraft explosions and collisions between satellites generate small debris, which also collects in the orbit of the Earth.
Over the years, the number of satellites that are launched has risen rapidly, which has increased the amount of orbital debris. Debris is kinetic in nature, moving at a speed of 18,000 miles per hour, which is quick enough to damage satellites or spacecraft. This poses a significant threat to space shuttles, the ISS, and the several satellites in the orbit of the Earth.
The market appears to be highly fragmented. The presence of several companies, including Airbus SE and Boeing makes the competitive environment quite intense. Factors such as the rising demand for multirole satellites and the expanding scope of space exploration will provide significant growth opportunities to the satellite manufacturing and launch manufacturers. Lockheed Martin Corp, Northrop Grumman Corp, Raytheon Co, and Thales Group are some of the major companies covered in this report.