Leo Satellite Market - Market Size & Forecast To 2032

Leo Satellite Market - Market Size & Forecast To 2032

The global LEO Satellite market is estimated to be worth of USD 36.06 Billion in 2032 and is growing at a CAGR of 14.90% during the forecast period from 2023 to 2032. A satellite in low earth orbit (LEO) is a spacecraft that orbits the planet at a lower altitude than geosynchronous satellites is called as LEO Satellites. LEO Satellites orbit at an altitude of 200 to 2,000 kilometers. They are frequently used for imaging, espionage, military reconnaissance, and other types of communications.

When it comes to connection solutions for retail, business, and government consumers, the telecommunications sector has continually strived to deliver faster speeds and reduced latency levels. When current terrestrial infrastructure is inadequate, satellite technologies, which were developed in the latter half of the 20th century, are particularly useful for delivering communication services. The satellite communication business, which has historically been dominated by geosynchronous (GEO) satellite technology, is currently anticipated to move toward Low Earth Orbit (LEO) satellite technology. In compared to GEO satellites, LEO Satellites are around 50 times closer to Earth and usually provide low latency (less than 30ms), coverage, and relatively high throughput levels (about 100Mbps).

Global adoption of digital transformation has surged due to the COVID-19 pandemic. However, the epidemic has also brought to light the fact that billions of people still do not have access to the internet, a basic human right. A survey from the International Telecommunication Union (ITU) states that while internet prevalence is 87% in wealthy nations, it is just 47% in developing nations and only 19% in least developed nations. Consequently, Connecting the Unconnected became a focal point of the 2020 G20 Riyadh Summit and resulted in the release of the Roadmap for Digital Cooperation, a strategy to secure everyone's access to the internet by 2030. Geographic accessibility and the high expense of constructing physical infrastructure (such as fibre optic cable laying) are two major impediments to enabling universal broadband internet access. LEO Satellites can help with these issues by offering low latency broadband access and global coverage. Additionally, connecting to LEO Satellites does not require a significant on-site ground infrastructure; rather, all that is needed to access the internet is a portable end-user interface that may be self-assembled.

In developed nations, there is an increasing need for low-cost, high-speed broadband with higher capacity for enterprise data (retail, banking), the energy industry (oil, gas, mining), and governments. As a result, there is a surge in demand for affordable broadband among individual customers in developing nations and remote places that might not have internet connection. Investments in LEO constellations are being driven by these market expectations. Additionally, developed nations have a significant desire for low-cost, high-speed internet, and if all proposed LEO constellations are successful, there may be more supply than there is anticipated demand, which would lower the price per megabit.

Some prominent players of the market are AAC Clyde Space, Airbus Defense & Space, Ball Aerospace & Technologies, Dauria Aerospace Ltd., Exolaunch Gmbh, Gomspace, L3Harris Technologies Inc., Lockheed Martin Corporation, Maxar Technologies, Millennium Space System, Inc, Mitsubishi Electric Corporation, Northrop Grumman Corporation, OHB Se, Planet Labs Inc, Pumpkin Inc., Raytheon Technologies Corporation, Sierra Nevada Corporation, Space Exploration Technologies Corp. (Spacex), Surrey Satellite Technology Ltd (Sstl), Thales Group, The Aerospace Corporation, and others.

The LEO Satellite market report has been segmented by type, subsystem, frequency, end user, application, and region.

Based on type, the market is segregated into large satellite, medium satellite, small satellite, and cubesat.

Among these, the small satellite subsegment is anticipated to held a notable share in the market. Small satellites are a type of low mass and compact satellites used primarily for communication, earth observation, and remote sensing. Typically, these satellites weigh less than 500 kg. Larger spacecraft are inspected while in orbit by small satellites. These are also utilized as test platforms for freshly created components that will be mounted on a satellite that is considerably more important. Due to their tiny size, small satellites are vulnerable to operational issues such a lack of power storage and a propulsion system.

On the basis of subsystem, the market is divided into satellite bus, payloads, solar panels, satellite antenna, and others.

Among these the satellite bus subsegment is anticipated to held a notable share in the market. A number of data buses are available for use by the command and data handling system to send and receive instructions and data to and from each system. An on-board computer serves as the command and data handling system and controls how the LEO Satellite functions. The on-board computer is managed by installed specially programmed software that directs the programmes assigned to handle a variety of tasks such as gathering and processing data about all payloads and subsystems, managing operation of the solar power as well as charging the batteries for the eclipse period, keeping and distributing the satellite time, calculating the satellite position in orbit, and autonomously.

Based on frequency, the market is categorized into L-band, S-band, C-band, X-band, Ku-band, Ka-band, Q/V-band, HF/VHF/UHF-band, and Laser/Optical-band.

Among these, the Ka-band subsegment is anticipated to held a remarkable share in the market. This frequency makes it possible to use narrower beams, smaller antennas, larger data speeds, and more securely. Weather and rain fade, the absorption of a radio-frequency signal by atmospheric rain, snow, or ice, is more common at higher frequencies than at lower frequencies; frequencies greater than 11 gigahertz are more susceptible. Fortunately, there are ways to mitigate this vulnerability, including better ground-station architecture, adaptive coding, and signal modulation. The quantity of data a system sends can also be increased via improved spectral efficiency and spectrum-reuse rates.

On the basis of end user, the market is segregated into commercial, government & military, and dual-use.

Among these, the government & military subsegment is expected to held a notable share in the market. Over the past few years, the Armies of many nations have experimented with deploying their satellite programmes into lower earth orbit. These satellites would frontline the tactical forces on the ground that they were unaware of by offering direct assistance from low earth orbit for surveillance, sophisticated navigation & communication, and more. Such tiny payloads in low earth orbit would be a crucial component of any Army's increasing understanding of multi-domain operations from both a defensive and offensive standpoint. The LEO Satellites aid in coordinating actions on land, in the air, on the ocean, and in space. A noteworthy additional use of LEO Satellites for military regiments is high-tech development in cyberspace with outstanding communications efficiency and specialized targeted tracking systems from space.

Based on application, the market is segregated into communication, earth observation & remote sensing, scientific, technology, and others.

Among these, the communication subsegment is expected to held a remarkable share in the market. LEO Satellites are being used more often in contemporary communication technology. Numerous prospects in the area of satellite-enabled communication are being taken advantage of by the advent of wireless satellite internet and the development of small hardware solutions. With the aid of highly advanced miniaturized onboard nano, micro, and mini subsystems, together with cutting-edge mission-compatible ground-station technology, an increase in R&D efforts for communication-related missions is anticipated to offer improved communication systems.

Sources - QMI Research Practice, Primary & Secondary Insights

Based on region, the LEO Satellite market has been segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. In 2022, the Europe accounted for the significant share xx.xx% in the global LEO Satellite Market. This region was valued at USD xx.xx million in 2022, and it is projected to grow at a CAGR of xx.xx% during the forecast period, reaching USD xx.xx million by 2032.

The North America region is anticipated to held a significant share in the market as the US hold a strong position for LEO Satellite systems market. The US government is spending more money in cutting-edge LEO Satellite technology to improve the efficiency and efficacy of satellite communication. One of the main factors anticipated to propel the LEO Satellite market in North America is the rising investment in satellite equipment to improve the defense and surveillance capabilities of the armed forces. Other important drivers include the modernization of existing communication in military platforms, critical infrastructure, and law enforcement agencies using satellite systems.

However, the Asia-Pacific region is also predicted to show a lucrative growth in this forecast period owing to the rapid adoption of digitalization across businesses, growing demand for earth observation satellites, and increased efforts to produce more effective small satellite parts. The key nations in this area with a strong need for LEO Satellites are China, Japan, and India.