Over the years the global space economy has been growing at a robust pace owing to the rise in demand for satellite-based connectivity for applications such as remote sensing, navigation, earth observation, and communication, among others. As per Federal Aviation Administration (FAA), 76% revenue of the global space economy constituted of services, such as broadband communications, ground equipment manufacturing & sales, remote sensing, and television and launch services. The remaining 24% is associated with government space program and commercial human spaceflight.
Payloads are being delivered by the launch vehicles in the Earth’s orbit, thus making launch vehicles an essential part of the space economy. Small-lift, medium-lift, heavy-lift, and super heavy lift vehicles are the different types of launch vehicles that can deliver payload across Earth’s orbit.
There are several key players operating in the aerospace industry and it is considered as one of the most competitive market. Some of the most preferred strategies adopted by the players in the industry include partnerships among major players, pricing strategies, innovative product launches, and acquisitions of start-ups.
Moreover, the players present in the market have the potential to deliver cost-effective and superior quality launch solutions. The focus and the continuous efforts of the different players in the industry to develop hi-tech launch vehicles is expected to trigger a boost in the growth of the market.
According to a market intelligence report published by BIS Research, titled ‘Global Launch System Payload Market – Analysis and Forecast (2018-2028)’, the market was estimated at $7.37billion in 2017 and is expected to reach $23.53 billion by 2028 in terms of revenue. In terms of volume, 390 launches had been conducted by 2017 and the count of these launches is expected to reach 1,666 by 2028. During the forecast period from 2018 to 2028, the market is anticipated to grow at a CAGR of 9.31% and 13.69% in terms of value and volume.
The rising demand for satellites for a variety of applications, increasing investments in the satellite launch industry, and a growing demand for commercial small satellite constellation are the most important factors, enabling the growth of the payload market. Alternatively, increasing space debris and stringent regulatory framework are challenging the growth of the market.
Based on the insights published in the BIS Research report, the market is segmented by class, orbit, end user, and by region. The market segment divided on the basis of class is further segmented into 1-500 Kg, 501-2000 Kg, 2001-5000 Kg, and 5000-10000Kg. In 2017, the 1-500 Kg class was responsible for generating the maximum revenue in the market. Based on the segmentation by orbit, further division was done into Geosynchronous Earth Orbit (GEO), Medium Earth Orbit (MEO), and Low Earth Orbit (LEO), where in maximum satellites were placed in the LEO of the Earth in 2017.
In case of payload market by end user the segmentation was done on the basis of commercial, academic, military, and government sector. In 2017, maximum revenue of the market was generated by the commercial end use segment. Lastly, on the basis of region the segmentation was done as North America, Europe, Asia-Pacific, and Rest-of-World, where in, maximum revenue in 2017 was generated by the region of North America, which is expected to maintain its dominance in future as well.