Satellite Launch Vehicle Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Satellite Launch Vehicle Market Size

Satellite Launch Vehicle Market Trends & Growth Drivers

Technological Developments Are Latest Market Trends

• The implementation of AI and machine learning in the development of SLVs is a key market trend.
• AI improves mission efficiency by reducing downtime, itself by speeding up physical detection and diagnosis.
• In addition, AI can help in simplifying the assembly and testing of these vehicles, to further save cost and time and optimize the manufacturing process.
• Furthermore, SLVs’ communication and navigation systems can be assisted by AI to help astronomers.
• Other trends, including the development of small launch vehicles to carry small satellites, thus saving operational cost and investments in hardware development, are supporting the market growth.

Growing 5G Satellite Communication Market Is Key Market Driver

• The global 5G satellite communication market continues to expand, boosted by the increasing launches of communication satellites.
• According to the Union of Concerned Scientists, of the 6,718 working satellites in the earth’s orbit in December 2023, 4,823 were communication satellites.
• Technological advancements and the surge in the need for high-speed connectivity with low latency drive the demand for 5G communications via satellites.
• 5G networks are playing a critical role in assisting governments and policymakers in creating smart cities, thereby allowing inhabitants to participate and realize the socioeconomic benefits provided by an advanced, digital, data-intensive economy.
• With such developments, the demand for SLVs is predicted to expand in the coming years.
• In addition, the increasing defense expenses by developing countries, such as India, China, and South Korea, for advancing the defense communication technology, is the major growth driver for the industry growth.
• Moreover, with the increasing number of internet users all over the world, a huge amount of data is being generated, which further makes the satellite spectrum highly crowded and congested.
• This drives the demand for satellites, further fueling the market growth.

High Cost of Rockets Hampers Market Growth

• Rockets for space missions are extremely costly to manufacture, from R&D and simulation to component production and final integration.
• Additionally, their safety and reliability are of great concerns for governments, which is why the regulations imposed on manufacturers are strict.
• Complying with them requires extensive expertise and system testing, which adds to the overall costs.
• To be able to launch satellites for critical applications, such as telecommunications, broadcasting, navigation, weather monitoring, and military purposes might necessitate design modifications in the launch vehicles.
• Additionally, numerous companies operate in this market with advanced technologies and decades of experience, which restrains new companies from accessing it.
• Another key concern associated with satellite launch vehicles is air pollution.
• While NASA uses liquid hydrogen and oxygen in its rockets, which cause no GHG emissions, other public and private space agencies still rely on petroleum- and chemical-based fuels.
• For instance, SpaceX’s Falcon 9 uses kerosine and liquid oxygen, while Starship uses methane, all of which release GHGs upon ignition.
• Hence, the race to create sustainable rockets will demand even more investment than currently, thus restraining the growth of the market to some extent.

Satellite Launch Vehicle Market Analysis

Orbit Analysis

The market is dominated by the LEO category, with around 50% revenue share in 2024. It is also the fastest-growing category, with 3.6% CAGR. Satellites operating in LEO offer faster communications and low-latency networking and are easy to set up, thus ideal for deployment. Moreover, huge investments by government and private organizations are being made to deploy satellites in LEO. For instance, Space Exploration Technologies Corp. is developing the “Starlink” satellite internet constellation in the low earth orbit. Further, according to a private organization, there are about 3,700 satellites in LEO.

Furthermore, the GEO category is set to follow LEO, as satellites made for the geostationary orbit offer superior telecommunication and observation functionalities. According to the same source, there are about 560 GEO satellites orbiting the earth.

The following orbits have been considered:

• GEO
• MEO
• LEO (Largest and Fastest-Growing Category)

Launch Activity Analysis

With 75% market share in the satellite launch vehicle market, the commercial category dominates the launch activity segment. It will also be the fastest-growing category in the forecast period, with 4.0% CAGR.

This can be attributed to the growing number of commercial satellite launches, in tune with the commercialization of space exploration programs. The growing commercial activities, including satellite navigation, satellite television, and commercial satellite imagery, along with the decreasing costs for launch and space hardware, are the major reasons for the category’s domination.

The report offers insights into these launch activities:

• Commercial (Larger and Faster-Growing Category)
• Government & Military

Payload Analysis

The nano and micro payload category holds the largest revenue share, in 2024, and it will also witness the highest CAGR, over this decade. The growth in the number of nanosatellites and the integration of composites to reduce satellite weight will propel the use of nano and micro payload launch vehicles. As it is not feasible to carry small payloads in large launch vehicles, as larger rockets cost more to manufacture and operate, launch vehicles specially designed to carry nano and microsatellites are expected to offer market players lucrative opportunities in the forecast period.

The segment is categorized as follows:

• Nano and Micro (0–200 kg) (Largest and Fastest-Growing Category)
• Small (201–1,200 kg)
• Medium (1,201–2,200 kg)
• Large (above 2,201 kg)

Application Analysis

Communication applications dominate the market in 2024. This is primarily due to the increasing need for 5G and satellite connections in several commercial fields, such as logistics and shipping, automobiles, and civilian aircraft. Moreover, the increase in internet users and volume of data, together with the increasing demand for low-latency transmission, are driving the market category.

The highest CAGR, of 4.2%, is expected in the earth observation & remote sensing category. This is attributed to the growing demand for accurate weather forecasting and government’s rising focus on environmental monitoring, urban planning, and disaster management. Moreover, earth observation is done for military surveillance purposes and to offer high-resolution commercial satellite imagery for diverse applications, from navigation to project progress monitoring.

The below-mentioned applications are considered:

• Communication (Largest Category)
• Earth Observation & Remote Sensing (Fastest-Growing Category)
• Space Exploration
• Surveillance & Reconnaissance
• Others

Launch Analysis

The single-use/expendable category holds the larger share, of 60%, in 2024 as these vehicles emerged earlier than reusable ones. This is why they have been the traditional choice of space exploration companies for launching satellites and other kinds of payloads into space.

The reusable bifurcation will grow faster, over the forecast period. This is attributed to the lower cost of developing these rockets as the same one can be used repeatedly. SpaceX’s Falcon 9 is partially reusable, while the Starship is fully reusable. Amidst the growing competition in the space launch industry, where cost is key, reusable rockets can offer cost-effective services to satellite owners and operators.

Below are the segment categories:

• Single-Use/Expendable (Larger Category)
• Reusable (Faster-Growing Category)

Stage Analysis

The multistage bifurcation is both the larger and faster-growing category. Because they are larger, multistage rockets can carry more fuel, thus offering the ability to put satellites in higher orbits. They can also carrier heavier loads and multiple satellites, which can offer cost-effectiveness in case more than one satellite needs to be launched in short time. Saturn V (NASA), Ariane 1, 2, and 4 (ESA), and GSLV and PSLV (ISRO) are all multistage rockets.

The segment is divided as below:

• Single
• Multistage (Larger and Faster-Growing Category)

Regional Analysis

• North America leads the satellite launch vehicle market, with a revenue share of around 45% in 2024, which can be attributed to the growing commercial launch activity in the region.
• Furthermore, the presence of major market players is contributing to the region’s dominance.
• Additionally, the continent’s advanced technologies and availability of a large pool of technically skilled workers are fueling the region’s market progress.
• The U.S. is home to both NASA and SpaceX, two of the foremost space exploration companies in the world.
• Additionally, out of the 6,718 satellites orbiting the earth in December 2023, 4,511 belonged to the U.S. 56 to Canada.
• The U.S. is also home to almost all of the satellite and launch vehicle manufacturers, as well as major commercial operators, such as SpaceX, Iridium, ORBCOMM, Viasat, and Globalstar.
• These companies, the DoD, NOAA, and NASA widely use these satellites for commercial and military purposes.
• APAC is expected to grow the fastest in the industry, with a CAGR of 4.6%, during the forecast period.
• This can be attributed to the growing satellite launches in the region for communication and space exploration purposes.
• Furthermore, the increasing government investment and participation of private players in the industry, to develop the 5G network, has significantly boosted the market.
• India, China, and Japan are regional leaders in space exploration, with numerous satellites in orbit, many placed in orbit via indigenously developed launch vehicles.
• All these countries are bolstering their defense capabilities, for which remote earth monitoring is vital.

The regional breakdown of the market is as follows:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America, Middle East, and Africa (LAMEA)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Saudi Arabia
  • South Africa
  • U.A.E.
  • Rest of LAMEA

Satellite Launch Vehicle Market Share

The market is consolidated as space launch vehicles are not easy to develop, requiring years of expertise and tonnes of money. This is why only a few major companies are able to manufacture rockets at scale for commercial and government satellite launches. Moreover, due to the expensive and critical nature of rockets, satellites, and space exploration programs in general, users generally preferred the established players.

In recent years, players operating in the satellite launch vehicle market have been involved in several strategic and technological developments in order to achieve industry dominance. Some of the strategic measures taken by the players are product development and innovation, partnerships and collaborations, and business expansions and investments.

Satellite Launch Vehicle Market News

• In August 2024, SpaceX launched 23 Starlink satellites into LEO on the Falcon 9 from the Kennedy Space Center at Cape Canaveral, Florida.
• In February 2024, Innovative Solutions in Space B.V. (ISISPACE) announced SATORO PTE. LTD. as its distributor for small satellite projects in Southeast Asia.
• In October 2023, Blue Origin Enterprises L.P. unveiled the Blue Ring spacecraft platform with multiple mission capabilities, including transportation, hosting, refueling, logistics, data relay, and in-space cloud computing. The platform can accommodate satellites and other kinds of payload weighing over 3,000 kg in total.
• In October 2023, Mitsubishi Heavy Industries Ltd. and Viasat signed bilateral agreements with the UK Space Agency (UKSA) and Japan Aerospace Exploration Agency (JAXA) for the development of the InRange in-orbit telemetry relay service, which Mitsubishi’s H3 launch vehicle will act as the demonstration platform for.