LEO Satellite Market Size, Share & Industry Analysis, By Type (Below 50 Kg, 50-500 Kg, and Above 500 Kg), By Application (Commercial, Military, and Others), Regional Forecast To 2031

Updated On: 20 November 2023

LEO Satellite Market Report Overview

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The global leo satellite market size was USD 4189.85 million in 2022 and is projected to touch USD 6894.56 million by 2031, exhibiting a CAGR of 18.06% during the forecast period.

In recent years, Low earth orbit (LEO) satellites have garnered immense popularity. They offer low latency due to their low orbital deployment and are used for various applications such as communication, surveillance, and earth observation. LEO satellites are deployed at a distance of 200 km to 2,000 km from the earth’s surface. With the world advancing to new heights in space and earth explorations, China has also joined the race to become a pioneer in the aerospace industry. The State-owned Assets Supervision and Administration Commission (SASAC) announced the establishment of the new China Satellite Group Co. in April 2021. China has announced its plans to deploy a mega-constellation of LEO satellites for the country’s own use. The entrance of China in the Low Earth Orbit (LEO) satellites market is anticipated to transform the market of global and China LEO satellites with the introduction of ingenious technologies and boost the market growth in the forthcoming years.

COVID-19 IMPACT

"Delayed Projects and Launches to Resume with Ramped Up Vaccination Drives"

The humanitarian crisis has unleashed an unprecedented crisis on the global economy. The slowed economic activities due to the rapid spread of the pandemic have resulted in a financial setback for several industries and markets, including the global and China LEO satellite market. The disruption of the global supply chain and logistical networks have impacted the market growth. The delay in projects has affected the growth of the market. The low available workforce in the manufacturing facilities due to the stringent lockdowns and curfews restrictions have aggravated the situation. Nonetheless, the vaccines are available to the masses, and nations across the globe have ramped up their vaccination drives. The resumption of global and China LEO satellite launches and delayed projects are likely to accelerate by the end of the year 2022, and the market is expected to witness strong growth post-pandemic.

LATEST TRENDS

"Increasing 5G Network Adoption through LEO Satellite Constellations to Boost Market"

Network operators across the globe are investing heavily to introduce and develop 5G networks in their territories. LEO satellites are expected to play a vital role in expanding the 5G network across the globe. LEO satellites are cost-effective, easy to launch and maintain and enhance connectivity significantly. The ever-increasing demand for high-speed internet connectivity is anticipated to fuel the global and China LEO satellite market growth. Galaxy Space, a private operator in China, has already launched a commercial 5G LEO satellite called the Yinhe-1 in January 2020. The company plans to launch 144 LEO satellites to establish a strong 5G network across China in the forthcoming years.

LEO Satellite Market SEGMENTATION

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Based on type, the market segments into below 50 kg, 50-500 kg, and above 500 kg.

Based on application, the market fragments into commercial, military, and others. Out of this, the commercial segment is expected to gain the highest growth in the market. 

The increasing demand for high-speed internet connectivity is likely to surge the demand for commercial global and China LEO satellites. Geographically, the market is classified into North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa.

DRIVING FACTORS

"Surging Demand for Earth Observation Analytics and Imagery to Amplify Market Growth"

The earth observation services help monitor the agricultural lands, detect climate changes, meteorology, disaster mitigation, and other such applications. The earth imagery demand has increased across different verticals as images can be utilized to manage forests, land, and water resources. The US government is currently the largest buyer of satellite imagery. The earth observation analytics are used to project crop yield, and the LEO satellites help in the process. Hence, the market is likely to witness growth due to the surging demand for earth observation analytics and imagery.

"Increased Government Investments to Stimulate Market Growth"

The governments of major economies are increasing their investments in space technology. The increased government expenditures to strengthen the national stance in the global space exploration industry is likely to foster growth for the market. Additionally, the emergence of various space programs by governments of major economies such as India and China is anticipated to fuel market growth. Recently, the Chinese government added ‘satellite internet’ to the list of ‘new infrastructures’ in April 2020. The rivalry between the US and China in space technology has led to increased government investments. Hence, the increasing government investments in space technology are anticipated to bolster the growth of the market.

RESTRAINING FACTORS

"Technical Limitations to Restrain Market Growth"

Satellite communication works on radio waves. The technical limitations such as low network connectivity, dead spots, and the distortions in radio wave propagation due to high buildings are expected to impede the market growth. Additionally, LEO satellites' high manufacturing and deployment costs are likely to hamper the market's growth.

LEO Satellite Market REGIONAL INSIGHTS

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"North America to Dominate Global Market Due to Increasing Investments in Space Exploration & Research Programs"

North America is projected to dominate the global and China LEO satellite market. The presence of well-established research facilities, robust network infrastructure, and increasing investments in space exploration and research programs are anticipated to fuel the market growth. The US is likely to lead the regional growth of the market. The presence of key players in space technology, such as SpaceX, is expected to bolster the market's growth. SpaceX launched 60 Starlink satellites in May 2019 as a part of its mega constellation project.

Asia Pacific is likely to rank second in the global and China LEO satellite market share. The increasing space exploration missions and satellite launches across India and China are estimated to surge market growth. The growing digitization and enhance telecommunication networks coupled with the rapid internet penetration is likely to augment the market growth. The entrance of China in the race of becoming a pioneer in space technology has further created lucrative growth opportunities for the market. China plans to launch a humungous 13,000 LEO satellite constellation and has reportedly filed a spectrum for the same.

Europe is expected to gain considerable growth in the global market. The increasing demand for LEO satellites to enhance satellite navigation and communication is anticipated to stimulate market growth. Additionally, the rising development and adoption of 5G network across Europe are estimated to boost the market's growth.

The Middle East & Africa is projected to gain significant growth in the forthcoming years. The increasing defense expenditures and the favorable government initiatives such as Abu Dhabi Economic Vision 2030 and Saudi Arabia’s Vision 2030 will likely augment the demand for global and China LEO satellites and augment the market growth.

KEY INDUSTRY PLAYERS

"Key Players Focus on Extensive R&D to Improve Analytical & Imagery Features and Garner Growth in the Industry"

The key players in the market are heavily invested in R&D activities to improve the imagery and analytical features of the global and China LEO satellites. They are also emphasizing the resumption of delayed projects and reorganizing the operational structures affected by the pandemic. The global and China LEO satellite demand is likely to increase due to the rising investments by the government and private players operating in the market. The key players devise ingenious growth strategies such as new product launches, technological developments, patents, partnerships, collaborations, mergers, and others to garner growth and strengthen their market presence.

List of Key Market Players Profiled

• SpaceX
• Planet Labs
• Boeing
• Lockheed Martin
• Thales Alenia Space
• OneWeb Satellites
• SSL (Space Systems Loral)
• Northrop Grumman
• ISS-Reshetnev
• Kepler Communications

KEY INDUSTRY DEVELOPMENTS

January 2020: Galaxy Space, a private operator in China, has already launched a commercial 5G LEO satellite called the Yinhe-1. The company plans to launch 144 LEO satellites to establish a strong 5G network across China in the forthcoming years.

May 2019: SpaceX launched 60 Starlink satellites as a part of its mega constellation project.

REPORT COVERAGE

The global and China LEO satellite market report features a detailed analysis of the market and emphasizes on vital factors, such as end-users, applications, components, and leading companies. Besides this, the report offers crucial insights into the current market trends and highlights key industry developments. In addition to the factors mentioned above, the report envisages significant factors contributing to the market’s growth in recent years. The report also showcases the impact of the COVID-19 pandemic and suggests strategies for future growth.