San Francisco, 12 June 2024: The Report Satellite Payloads Market Size, Share & Trends Analysis Report By Orbit (LEO, MEO, GEO), By Application (Communication & Navigation, Remote Sensing, Surveillance), By End Use, By Region, And Segment Forecasts, 2018 - 2025

The global satellite payloads market size is expected to reach USD 21.8 billion by 2025, according to a new report by Grand View Research, Inc. The market is expected to witness a CAGR of 7.9% over the forecast period, owing to Increased government spending in space exploration activities is expected to boost the market growth over the forecast period.

The growing popularity of communication and broadcasting services including pay TV and Over-The-Top (OTT) have led providers to develop advanced payload systems. Moreover, the increased penetration of payloads in the commercial sector is expected to propel the market demand.

The market is expected to witness significant growth as there has been a great rise in the ordering and manufacturing of vast constellations of satellites for earth observation and telecommunication. Incremental improvements in launch operations and vehicle design are enabling a reduction in time for the manufacturing of payloads. Moreover, the evolution of small satellites is leading to the production of smaller payloads to reduce launch costs.

The need for geospatial tracking and positioning in the commercial sector is expected to drive the demand for satellite payloads over the forecast period. The emergence of high throughput satellites has resulted in high data-rate satellite transmission capability, which in turn is creating new opportunities for enhanced applications such as military, navigation, and commercial.

Significant innovations in communication & navigation applications such as Radio Frequency (RF) payload systems, flexible payloads, and advanced regenerative payloads are contributing to industry growth.

The growing trend of miniaturization has resulted in the development of small radar cameras and sensors that are commonly attached to large satellites for producing high-quality images of the earth’s surface. These small satellites are equipped with payloads that provide information about the land cover characteristics, urban regions, and other multi-purpose images. However, high design and manufacturing costs are expected to pose a serious challenge to market growth over the next few years.

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Flexible payloads are witnessing a rise in popularity as they can modify antenna beam patterns in orbit to respond to market demands. For instance, Airbus S.A.S. has designed a high power multi-beam broadcast antenna to allow operators to configure shaped beams for their customers with the help of flexible payloads.

Further key findings from the report suggest:

• The remote sensing segment is expected to grow at a CAGR of over 8.0% over the forecast period as it is expected to emerge as a viable platform in the agriculture and mining sectors
• The Low Earth Orbit (LEO) segment is expected to be the fastest-growing segment; this growth can be attributed to its increased demand in earth observation and imaging applications
• The commercial segment is expected to grow at the fastest CAGR of over 9% from 2017 to 2025. Growing advancements including channelization, space-based inflatable reflector antenna, multi-beam antenna, and internet routers are expected to propel the demand for commercial satellite payloads.
• The Asia Pacific satellite payloads market is expected to account for a revenue share of over 30% by 2025, with the increase in the number of satellite launches and government spending in space research contributing to the regional demand
• The key players in the industry include Airbus S.A.S., Harris Corporation, Lockheed Martin Corporation, Honeywell International Inc., and The Boeing Company

Digital payloads are gaining prominence as they are transforming the industry by allowing bandwidth to be switched between different transponders. These payloads are expected to change the cost structure of the satellite industry with their increasing adoption for various applications and services. They also allow end users to use smaller and affordable antennas on the ground to offer a cost advantage, leading manufacturers to provide smaller antennas that can automatically lock on to the satellites.

Moreover, the emergence of Digital Transparent Processor (DTP) is expected to transform the market as it uses multiple beams from the satellite and combines them into a single loop to connect them to multiple gateways seamlessly and efficiently. These processors offer flexibility regarding connectivity to overcome connection and channelization concerns.

Recent Development

• In January 2023, Airbus signed a contract with the Belgian Ministry of Defence to offer the defense force with a new UHF satellite communications service. The new payload aims to further enhance Airbus's portfolio throughout the lifespan of the satellite

Report Scope

Key industry players include Airbus Group, Honeywell International Inc., Lockheed Martin Corporation, Raytheon Corporation, and The Boeing Company. Players are engaged in mergers, acquisitions, and partnerships to gain an advantage over competitors. For instance, in March 2016, the Airbus Group acquired Navtech with a view to offering end-to-end flight operation services by providing solutions for electronic flight bags, aeronautical charts, navigation data, performance-based navigation, flight planning, aircraft performance, and crew planning.

Additionally, manufacturers are offering and developing new technologies that alter the cost capability dynamics of payloads. For example, miniaturization has garnered increased importance over the past few years as it is well suited for data gathering and scientific observations