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Will the Satellite Bus Market Grow or Shrink by 2030?

by Sonal Shukla

The space industry is going through a period of reinvigoration thanks to advances in technology, private investment, and public enthusiasm. However, will these factors cause a satellite bus industry boom? Let’s find out!

What Is a Satellite Bus?

A satellite bus is the body of a satellite that contains the equipment, including communication, navigation, propulsion, and electrical power system. The satellite bus is a supporting structure that safeguards the payload. The satellite bus cost is typically around 25% of the price of the entire satellite, and prices range from $10 million up to $50 million.

What Is the Size of the Satellite Bus Market?

The modern satellite bus market size is $30.8 billion. Satellite bus manufacturers are focused on payload carrying capability, heat dispersion, and payload lifting. The industry is dominated by about 20 major companies, with most being located in the US and Europe. Countries like Israel and India are also emerging as key satellite bus market players. The US is still the major player and controls 20% of the market. To boost market growth, satellite bus companies release new innovative spacecraft and practice vertical integration by purchasing suppliers.

The satellite bus market is divided into three segments, small, medium, and heavy. The small satellite bus market is the largest segment as small spacecrafts are much easier and cheaper to manufacture and launch. Their low-cost nature makes them affordable for many clients ranging from governments to private businesses.

The market is then divided into uses, including meteorology, navigation, research, and communication. Communication is by far the largest segment and accounts for 25% of all spacecrafts. These spacecraft play a key role in mobile communication, TV, radio, and the internet. The meteorology segment is the second-largest, which is used to predict and monitor the weather. Due to climate change and a predicted increase in natural disasters, these spacecraft will be increasingly important.

There has been a significant surge in the number of spacecraft launches, and private companies and government agencies are ramping up their investment in the industry. However, there are still very high barriers to entry in terms of cost and regulations. Keep reading to find out if barriers to entry will cause the market to shrink or if the new money and public enthusiasm for space will cause an explosion in growth.

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Will the Satellite Bus Market Expand?

The satellite body mаrket will be worth $54.33 billion by 2028, which is a massive increase from the current market value of $30.8 billion. The satellite bus stand market is predicted to generate $20.84 billion by 2030 and grow at a rate of 5.8%. The small satellite bus market is predicted to achieve the highest growth rate of any segment at 9.8%.

Even though the pandemic did cause a slight decline in the spacecraft bus market, the space industry has absorbed those challenges effectively and bounced back. The market is keeping growing thanks to the advancements in technology, the rising number of missions, and launching spacecraft, declining costs of the building.

The small spacecraft body market will grow the fastest because this segment has seen the largest technological advances. Small spacecraft can perform tasks that larger spacecraft can’t handle. Small spacecraft are also much cheaper to produce and launch. These cost-effective spacecraft are allowing wider and more diverse businesses to leverage their capabilities, resulting in strong market growth.

Communication is still expected to be the most common use case in 2030, and meteorology is predicted to grow at a rate of 6.9%. This high growth rate is based on the increased importance of monitoring the weather and natural disasters due to climate change. Agencies and companies are taking an increasing interest in monitoring the climate as they attempt to find solutions for climate change.

The US will still be the biggest player in the global market. However, countries like India and Israel will become increasingly powerful. Asia-Pacific is the market with the predicted highest growth rate at 6.7%, based on an increased need for navigation and mapping.

The Final Words

Based on the latest industry research, we are heading into a space golden age! The current $30.8 billion satellite bus market will reach over $55 billion by 2030! Small satellites will lead the charge and achieve a CAGR of 9.8% due to their cost-effective production, and cheap launch costs. In 2030 they will still be used mostly for communication and observing the weather, and North America’s market will remain the biggest, but Asia-Pacific will experience the most growth at 6.7%.

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