Satellite Bus Market

The global satellite bus market had a valuation of $11.91 billion in 2020 and is forecasted to reach $20.84 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.8% from 2023 to 2030.

The COVID-19 pandemic exerted its impact across nearly every facet of global economic activity and individuals' lives. With the onset of COVID-19, numerous countries worldwide imposed various restrictions and regulations on global trade, consequently affecting the supply chain for various industries. Moreover, the pandemic posed an existential threat to millions of businesses globally, and the mandatory lockdowns implemented worldwide created unemployment issues for billions of workers.

The space manufacturing industry also saw a disruption in crucial supply chains due to the COVID-19 pandemic. Many planned developments in the space sector were postponed as a result of the pandemic. Despite this, the satellite bus market managed to mitigate the pandemic's adverse effects, mainly due to advancements in satellite missions over time.

A satellite bus serves as the structural framework and primary system of a space vehicle, housing all the essential components required for a satellite. It provides a standardized model upon which multiple satellite spacecraft can be based. The satellite bus acts as a transportation mechanism for satellite payloads, accommodating the necessary equipment.

While all satellite buses share commonalities in their composition, each spacecraft's size and shape can vary depending on the specific satellite's requirements. These buses consist of several subsystems, each with a distinct purpose. The bus's structural design also imposes requirements such as communication links, on-board data processing, battery capacity, and data memory. The architectural design of the satellite bus supports all spacecraft hardware, including payload instruments designed for use in space missions.

Factors such as increased government and space agency investments, a rise in the number of satellite launches, and new product introductions in the satellite manufacturing market and launch systems drive the growth of the global satellite bus market. However, challenges such as unclear government policies and stringent regulations governing satellite implementation and use can hinder market growth. Conversely, the incorporation of new technologies and advancements in satellite mission technologies present promising growth opportunities for the market worldwide.

The global satellite bus market is categorized by subsystem, application, satellite size, and region. Subsystems include structures & mechanisms, thermal control, electric power systems, attitude control systems, propulsion, telemetry tracking command, and flight software. Applications cover earth observation & meteorology, communication, scientific research & exploration, surveillance & security, mapping, and navigation. Satellite sizes are classified as small, medium, and large. Regions studied include North America, Europe, Asia-Pacific, and LAMEA.

Prominent players in the global satellite bus market include Airbus S.A.S, Ball Corporation, Israel Aerospace Industries Ltd. (IAI), ISRO, Lockheed Martin Corporation, Mitsubishi Electric Corporation, Northrop Grumman Corporation, Sierra Nevada Corporation, Thales Group, and The Boeing Corporation.

Increase in investment by governments & space agencies

The growth of the market is significantly driven by the increased investment from governments and space agencies in the development of technologically advanced satellites. Countries such as the United States, China, India, and certain European nations are allocating substantial funds for various aspects of satellite development, including research, development, testing, evaluation, procurement, operation, and maintenance.

 These investments create abundant growth opportunities in the global satellite bus market. For instance, in 2020, the U.S. Department of Defense (DOD) allocated $14.1 billion, with $8.4 billion for research, development, testing, and evaluation (RDT&E), $2.6 billion for production, and $3.0 billion for operation and maintenance. Such significant investments in the space sector by various governments are expected to drive the satellite manufacturing and launch systems market.

Moreover, private companies like SpaceX are collaborating with government space agencies such as NASA to design and develop reusable satellite launch vehicles and other components aimed at reducing program costs. SpaceX has also constructed highly effective and secure launch systems. Additionally, the European Space Agency has increased its focus on the development of their launch systems, such as the Ariane 5, which is driving demand for efficient satellite buses in new satellite launch projects.

By Subsystem

Increase in number of satellite launches

Satellites are increasingly being utilized for diverse applications, including establishing communication networks, surveillance, military purposes, navigation, and TV broadcasting (D2H). They also play a vital role in addressing 21st-century challenges like climate change, resource management, and disaster mitigation. Consequently, many countries worldwide are frequently launching satellites. Furthermore, companies like SpaceX have launched a significant number of satellites in 2020, primarily for communication and various other applications. This surge in satellite launches has led to a rising demand for satellite buses, thereby propelling the global satellite bus market's growth.

By Application

Lack of clarity in government policies

Government policies in different nations can have a direct or indirect impact on the evolution of the satellite industry. Currently, there is no robust global or domestic on-orbit regulation regime in place. While the United States has introduced strict regulations governing satellite launch and re-entry, on-orbit activities, such as rendezvous and proximity operations, space-based space situation awareness (SSA), or RF mapping, remain unregulated. This regulatory gap represents a significant hindrance to the global satellite bus market's growth.

Furthermore, despite more than 70 countries participating in satellite operations, a consensus on establishing a comprehensive global regulatory regime, beyond high-level directives in the outer space treaty, has not been reached. Developing policies and regulations for a rapidly evolving commercial space industry poses significant challenges for operators and policymakers, given their differing timelines and the substantial efforts required to establish international agreements.

By Satellite Size

Increase in incorporation of new technologies

The introduction and incorporation of various technologies into satellite imaging are expected to enhance satellite imagery technology, offering substantial growth opportunities. These technologies include electric propulsion technology, high-resolution cameras, advanced remote sensing technology, next-generation GPS satellites, light detection and ranging (LIDAR) technology, hyperspectral sensors, and multispectral sensors. Recent advancements such as aerospace digital signal processors and large-scale anti-radiation field-programmable gate arrays are poised to facilitate real-time image processing, overcoming limitations in satellite imaging. A continuation of this trend is expected to position satellite imagery as the preferred choice for numerous commercial applications, further driving the growth of the market.

Furthermore, improvements in data transmission capabilities, enhancements in geospatial processing, and the scalability of cloud-based platforms are anticipated to create new growth opportunities. AI-based platforms offer insights into previously inaccessible factors such as social, industrial, and economic processes.

Machine learning (ML) algorithms are increasingly employed for processing daily satellite imagery to classify and detect objects, identify geographic and topographic features, and monitor incremental changes over time. Additionally, ML and AI automated algorithms can accurately identify various Earth-visible phenomena from space, such as cars in parking lots, crop yields, and geosensing in agricultural fields. Moreover, the integration of cloud computing with satellite imagery enables researchers to access image data from remote locations.

Covid-19 Impact Analysis

• The COVID-19 pandemic has had a profound impact on nearly every facet of the global economy and individuals.
• As the COVID-19 pandemic surged, many countries worldwide implemented restrictions and regulations on international trade, which disrupted supply chains across various industries.
• Beyond its economic toll, the pandemic posed an existential threat to countless businesses worldwide and led to widespread unemployment due to mandatory lockdowns imposed across the globe.
• Critical supply chains within the space manufacturing sector were also disrupted as a consequence of the COVID-19 pandemic.
• Moreover, numerous planned developments within the space industry were postponed due to the pandemic's impact.
• While the satellite industry was affected by the global economic slowdown resulting from the pandemic's spread, the satellite bus market managed to mitigate some of these negative effects by advancing satellite missions over time.

Key Benefits for Stakeholders:

• This study offers a comprehensive analysis of the global satellite bus market, including current trends and future projections, highlighting imminent investment opportunities.
• It provides valuable insights into profitable trends that can help stakeholders establish a stronger market presence.
• The report furnishes information regarding key drivers, restraints, and opportunities within the market, accompanied by a detailed impact analysis.
• A quantitative analysis of the market's financial performance from 2020 to 2030 is included for benchmarking purposes.
• Porter’s five forces analysis is employed to illustrate the bargaining power of both buyers and suppliers within the industry.

Satellite Bus Market Report Highlights

By Subsystem

• Structures & mechanisms
• Thermal control
• Electric power system
• Attitude control system
• Propulsion
• Telemetry tracking command
• Flight software

By Application

• Earth observation & meteorology
• Communication
• Scientific research & exploration
• Surveillance & security
• Mapping
• Navigation

By Satellite Size

• Small
• Medium
• Large

By Region

• North America  (US, Canada, Mexico)
• Europe  (Germany, France, UK, Russia, rest of Europe)
• Asia-Pacific  (China, Japan, India, South Korea, rest of Asia-Pacific)
• LAMEA  (Latin America, Middle East, Africa)