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Low Earth Orbit or LEO satellite launches have dramatically increased in recent years. These satellites of various sizes and weights are launched in the near earth orbit for monitoring, observation, communication, and navigation. The rising demand for high-speed internet connectivity and introduction of 5G, 4G, and other advanced technologies are expected to boost LEO satellite launches in the forthcoming years. The growth in earth observation analytics for crop yield projection is likely to aid the industry expansion. Further, the growing government investments in space technology and space exploration programs are predicted to provide substantial growth opportunities for the industry players. For instance, China’s New Infrastructure list included Satellite Internet in April 2020.
However, the recent coronavirus pandemic has stagnated the market growth. The delayed or canceled satellite launch programs have affected the demand for LEO satellites. The shutdowns of manufacturing facilities and supply chain disruptions have impeded the industry’s growth prospects. Nonetheless, easing lockdowns in various nations are helping to recover such satellite demand. The resumption of satellite launch programs by the end of 2022 are projected to aid industry expansion. As per Business Research Insights, the global LEO satellite market size is predicted to hit USD 8,586.3 million by 2027. The increasing adoption of 5G networks through LEO satellite constellations is predicted to bolster industry development in the coming years.
Business Research Insights Identifies the Following as the Top 5 Leading Companies in the Industry:
SpaceX
Founded by Elon Musk in 2002, this American company is a satellite communications corporation, space launch provider, and spacecraft manufacturer. The company manufactures Starlink communication satellites, crew spacecraft, Cargo Dragon, several rocket engines, and the Falcon 9 and Falcon heavy launch vehicles. The company recently launched more than 2,400 small satellites in May 2022 to form the largest satellite constellation.
2. Boeing
This American multinational corporation was founded in 1916 and is one of the largest global aerospace manufacturers. The company sells, manufactures, and designs satellites, missiles, telecommunications equipment, rockets, rotorcrafts, and airplanes. It also offers product support and leasing services. The company generated a revenue of USD 62.29 billion in 2021.
3. Lockheed Martin Corporation
This American corporation was founded in March 1995 and is headquartered in Washington, U.S. It specializes in information security, arms, aerospace, and technology. It employs more than 115,000 people globally comprising nearly 60,000 scientists and engineers as of January 2022. The U.S. Department of Defense contributes toward almost half the company’s sales. It is also a contractor for the National Aeronautics and Space Administration and the U.S. Department of Energy.
4. Thales Group
This French multinational corporation designs, manufactures, and offers services for the security, transportation, defense, and aerospace industries. Headquartered in Paris, France, the company was founded in December 2000. It has more than 80,000 employees. In June 2022, the NILESAT 301 communication satellite built by Thales Alenia Space was launched successfully from Florida’s Cape Canaveral launch pad
5. Northrop Grumman
Founded in 1994 and headquartered in Virginia, U.S., this aerospace and defense technology company is amongst the largest military technology provider and weapon manufacturer globally. The company specializes in products such as rocket launch systems, satellites & space information technology, missiles and missile defense systems, unmanned aerial vehicles, military aircraft, and others. The company developed the James Webb Space Telescope, the world’s largest space telescope, which was launched in December 2021 for space exploration and imagery.
The number of space exploration programs across several countries is swiftly increasing. To address this, the major companies operating in the dynamic competition are embracing strategic acquisitions and collaborations to amplify their growth prospects. They are heavily investing in research & development activities to launch LEO satellites for various end-uses. The increasing number of satellite launches is predicted to create lucrative growth opportunities in the future. Additionally, the mounting government investments in space technology and space exploration programs are predicted to provide substantial growth opportunities for the industry players.