Currently, many space agencies and commercial companies across the globe have been focusing on developing low Earth orbit (LEO) satellite constellations. This will drive the market for the propulsion system. Moreover, rising research and development activities to develop cost-efficient propulsion technologies and advancements in 3D printing technology for developing the components of satellite propulsion systems are other factors contributing to the growth of the LEO-focused satellite propulsion technology market. For instance, in April 2021, Phase Four signed a contract with the U.S. Air Force to test alternative fuel on its Maxwell electric thruster. The company received $750,000 from the U.S. Air Force under Small Business Innovation Research (SBIR) award. This would likely penetrate the niche markets and generate significant revenues in the future.
Read Report Overview: LEO-focused Satellite Propulsion Technology Market
The global LEO-focused satellite propulsion technology market is expected to reach $13,212.7 by 2031, with a CAGR of 6.98% during the forecast period 2021- 2031. The increasing number of satellite constellations for applications such as communication, technology development, Earth observation, and remote sensing is expected to be the major driving factors for the market. In addition, increasing demand for building efficient propulsion systems s at low cost are key drivers for the growth of the global LEO-focused satellite propulsion technology market.
Between 1957 and 2021, many governments and commercial organizations such as SpaceX, Ariane Space, Europe Space Agency (ESA), National Aeronautics and Space Administration (NASA), and Japan Aerospace Exploration Agency (JAXA), among others, started demonstration for new propulsion system for different satellites in low Earth orbit (LEO). Since then, technology has evolved continually and transformed the entire space industry by developing unique products and systems.
LEO-Focused Satellite Propulsion Technology Market by Application
The market is currently flourishing with the development of small satellites for communication missions. Companies and space agencies aim to develop long-range, high-capacity, and cost-effective communication constellations using small satellites.
LEO-Focused Satellite Propulsion Technology Market by Propulsion Type
Electric propulsion is the most prominent propulsion system contributing to the global LEO-focused satellite propulsion technology market. It is anticipated that, by 2031, the market penetration of electric satellites will grow to more than 40% in the overall satellite launches. However, the high cost, development complexity, and low thrust capability are restraining the growth of the electric propulsion system segment. However, technological advancements are anticipated to overcome these challenges, and electric propulsion systems are anticipated to witness huge growth.
LEO-Focused Satellite Propulsion Technology Market by Region
North America is expected to account for the highest share of the global LEO-focused satellite propulsion technology market, owing to a significant number of companies based in the region, increased spending by government and commercial organizations such as the National Aeronautics and Space Administration (NASA), Aerojet Rocketdyne, Ariane Group, Exotrail, Space X, and Enpulsion for LEO-based propulsion systems.
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Key Market Players and Competition Synopsis
Airbus S.A.S, Ariane Group, Aerojet Rocketdyne (Acquired by Lockheed Martin Corp.), Busek Co Inc., CU Aerospace, IHI Corporation, Lockheed Martin Corporation, L3Harris Technologies, Inc., Moog Inc., Nano Avionics, Northrop Grumman Corporation, OHB SE, Safran, Space Exploration Technologies Corp. (SpaceX), Thales Group.
The companies profiled in the report have been selected post-in-depth interviews with experts and understanding details around companies such as product portfolios, annual revenues, market penetration, research and development initiatives, and domestic and international presence in the LEO-focused satellite propulsion technology market.
