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The global space launch services market size was USD 12.67 billion in 2019 and projected to reach USD 26.16 billion by 2027, exhibiting a CAGR of 13.35% during the forecast period.
The space launch services comprise a series of activities, such as integration of payload to the rocket launch, launch infrastructure, and launch assembly. Recently, there has been a rise in the number of modernization related contracts between the National Aeronautics and Space Administration (NASA) and other key companies to upgrade their launch vehicles and equipment. This includes the modernization of 3D printed rocket engines components and launch vehicles spares. In September 2019, NASA and Lockheed Martin Corporation assigned a contract worth USD 4,600 million to supply 6 Orion crew capsules integrated with lightweight 3D printed modules.
COVID-19 Pandemic Has Delayed the Space Launch Programs, Subsequently Affecting Market Growth
The impact of the COVID-19 pandemic has drastically changed the dynamics of the space industry and specifically satellite, human spacecraft, and launching vehicles. The slowdown in the operation of the key players has significantly changed the demand for new launches. In the first quarter of 2020, major companies such as Rocket Labs have suspended the delivery until 2020. Similarly, United Launch Alliance (ULA) has postponed the launches to 2021 and 2022.
This has affected the businesses of small and medium-sized companies majorly in the U.S., as these companies are the rocket component and system providers to the OEMs. It is anticipated that the business has declined to 70-80% and gradually will improve by the end of 2021.
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Surging Use of Miniaturization in Electronics Methodology in Space Sector is a Prominent Trend
Miniaturization in electronics systems and components can improve the abilities of a small satellite. It is a process of reducing the size of the electronics and hardware used in the smaller satellite.
Commercial-off-the-Shelf (COTS) approach is used in the miniaturization methodology. In the COTS approach, space companies are procuring standard terrestrial commercial hardware in order to fly it directly into space.
Constellations of small satellites in low earth orbit are carried out at lower costs. It includes satellite constellation activities such as communication with earth-based control stations, earth observation, and navigation activities.
Increasing Usage of Small Satellites for Internet Connectivity to Propel Market Growth
Recently, the U.S. Federal Communications Commission (FCC) approved the license to deploy up to one million user terminals throughout the U.S. for SpaceX’s Starlink Internet program. This will change the dynamics of the market of the U.S. market. Under the Starlink Internet program, SpaceX has deployed 60 small satellites in low earth orbit, in a single launch, during the first half of the year 2020. The company is aiming to deploy 1,602 small satellites by the end of 2020.
In addition to this, it is planning to initiate the internet service by late 2021 which will have a significant impact on the U.S. internet connectivity platform. The firm focuses on private beta service and will provide service in the U.S. and Canada in the initial phase. To deploy these small satellites in low earth orbit (LEO), the company has four Falcon 9 reusable launch vehicles in inventory, and by the end of 2020, it is planning to manufacture additional ten reusable launch vehicles; this will boost the growth of the space launch services market during the forecast period.
Rising Investments by Key Companies in Space Exploration Activities is Propelling the Growth of Market
There has been an increase in space research and development (R&D) activities. Several commercial companies are developing, maintaining, and operating the commercial payload facilities for the International Space Station (ISS). Currently, companies, namely, Teledyne Brown Engineering, AlphaSpace, NanoRacks, StaARS, TechSpot, and Space Tango, are providing advanced systems to conduct ISS research, such as in-orbit facilities. According to New York City-based Space Angels survey space, the company received USD 5.8 billion investment in 2019. In October 2019, the Boeing Company had invested USD 20 million in Virgin Galactic Company that was planned to commercialize space tourism by promoting suborbital space travel.
In October 2018, the Boeing Company announced that it had invested in satellite propulsion startup Accion Systems Inc. for small thrusters. Accion Systems Inc. is a U.S. based startup, focusing on scalable electric propulsion technology for small satellites. The involvement of private and public space companies will result in the development of new space launch capabilities. Therefore, increasing funding by venture companies will boost the market growth.
Issues Related to the Weight, Heat, and Vertical Landing of Space Launch Vehicle
The complex design and development of the 1st stage space launch vehicle restraints the growth. Companies such as SpaceX, NASA, United Launch Alliance (ULA), and Blue Origin focus on research and development for cost-effective and lightweight propulsion systems for the launch vehicle. Heavyweight creates more friction, leading to high heat generation during vertical landing from the earth's atmosphere to its surface. This is the major concern for the engineers. Thus, research in the design aspect is focused, and the use of lightweight material such as 3D printed components is considered for component design.
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Rising Demand for Small Satellites for Communication and Surveillance Purposes is Supporting Market Growth
Based on payload, the market is divided into a satellite, stratollite, cargo, human spacecraft, and testing probes. The satellite segment is anticipated to share 45.44% in the global market in 2019. The satellite segment is estimated to be the largest segment and fastest-growing segment due to the increasing demand for small-satellite, nano-satellite, mini-satellite, medium satellite, and large satellites worldwide. In 2019, the demand for this segment was higher in North American countries as the rising space programs by NASA to develop technologically advanced space launch services.
GEO Based Space Exploration Activities is Expected to Drive Market Growth
Based on orbit type, the market is classified into low earth orbit (LEO), medium earth orbit (MEO), geostationary equatorial orbit (GEO), and beyond GEO. The GEO segment is expected to be the fastest-growing segment during the forecast period. This growth is attributable to the increasing demand for observatory space research and laboratory research. GEO based satellites provide services for the Mars mission, the Moon mission, and several other asteroid missions.
Land Segment Anticipated to Dominate Market Due to Rising Land-Based Space Launches
Based on the launch platform, the market is segmented into land, air, and sea. The land platform segment is expected to grow at the fastest rate due to the advanced infrastructural developments that influence the ease in the operational performance of space launch services. The sea segment is the third-largest contributor to the growth of the market due to research and development activities coupled with the ongoing technological advancement in the reusable launch vehicle.
Medium-to-Heavy Lift, Launch Vehicle Segment, is predicted to be Fastest-Growing Segment Market Owing to Rising Demand for SATCOM Connectivity
Based on the vehicle type, the market is classified into a medium-to-heavy lift launch vehicle segment and small lift launch vehicles. The medium-to-heavy lift launch vehicle segment accounted for the largest market share in 2019, owing to the rapid usage of reusable launch vehicles in the commercial space programs. The segment is expected to be the fastest-growing segment during the review period. Due to the advancement of satellite communication-related technologies among the nations.
Increasing Funding from the Private Sector Boost the Growth of the Commercial Segment
Based on the end-user, the market is classified into commercial and military & government. The commercial segment accounted for the largest market share in 2019, owing to increased funding from the private sector. This segment accounted for 68.24% market share which is way higher than other segments.
The commercial segment is expected to be the fastest-growing segment during the review period. Due to the increasing launch of communication, satellites that are mainly used for radio and internet services.
North America Space Launch Services Market Size, 2019 (USD Billion)
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The Asia Pacific is anticipated to be the fastest-growing segment. The growth can be attributed to the increasing space launches owing to the rising demand for telecommunication and surveillance applications in the region. The major countries, such as China, India, and Japan, would contribute to the growth of the market. In 2018, the Indian government allotted USD 4 Billion for the infrastructure development of the space sector.
The market in North America was worth USD 4.88 billion in 2019 and is projected to lead the global market during the forecast period owing to the presence of key players in the region. North America is the largest market for space launch services, and the region is projected to remain dominant throughout the forecast period. The increase in space expenditure would contribute to the growth of the region. The U.S. governmental norms are in favor of launch vehicle manufacturers, thus, propelling the growth of the market. The U.S. government is involving private companies in the defense and space-based platforms this will propel the growth of the market.
The key players, such as Inmarsat Global Ltd., anticipate the market to grow substantially in Europe owing to the rising adoption of SATCOM services.
ArianeGroup SAS Holds a Dominant Position in Market Owing to Continuous Innovation of Advanced LEO based Launches
ArianeGroup SAS is one of the major players that lead in space launches. Advanced space launch development through large investment in R&D activities, collaboration, and agreement with government organizations and providing cost-efficient solutions is the reason behind the company’s success.
An Infographic Representation of Space Launch Services Market
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The market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, leading space vehicles, and leading applications. Moreover, the report offers insights into market trends and highlights key industry developments. In addition to the factors mentioned above, the market report encompasses several direct and indirect factors that have contributed to the growth of the market over recent years.
Value (USD Billion)
By Orbit Type
By Launch Platform
By Vehicle Type
Fortune Business Insights says that the global market size was USD 12.67 billion in 2019 and is projected to reach USD 26.16 billion in 2027.
The market is projected to grow at a CAGR of 13.35% during the forecast period (2020-2027).
The satellite segment is expected to be the leading segment in this market during the forecast period.
AerianeGroup is the leading player in the global market.
North America held the highest market share in 2019.
Issues related to the weight, heat, and vertical landing of space launch vehicles are majorly restraining the growth of the market.
The U.S. held the highest market share in 2019.
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