Satellite Manufacturing and Launching to Face Unprecedented Growth According to NSR
Wilmington, DE – February 24, 2015 – NSR’s Satellite Manufacturing and Launch Services, 5th Edition, report, released today, projects that over 1,800 satellites weighing more than 50 kilograms will be ordered and launched over the next decade, generating US$ 300 billion across global markets. Satellites launched by entirely new commercial and national operators will complement replacement and expansion missions from traditional players, sustaining the market above $26 billion per year.
Strong 2013 market performance continued through 2014, with 116 satellites launched globally and 149 ordered. Despite failure reviews and operational delays, NSR noted launch rate increases in all but one segment, and over $1.4 billion in added revenues in 2014. Commercial procurements overtook government and military orders for the first time since 2010, a result of restrained government budgets as well as small satellite constellation growth. The growth witnessed in 2014 across multiple segments is expected to continue into 2015.
While traditional GEO communications will continue to be the most valuable commercial segment for the manufacturing and launch industry, satellite services are gradually addressing a broader user base and causing a corresponding change in procurement. “Evolving barriers to entry and new platforms – whether small and cheaply produced or featuring higher power, electric propulsion, and flexibility – are facilitating a diversification of application markets and the emergence of new players across the value chain,” noted Carolyn Belle, NSR Analyst and report co-author. “Over the next decade we will see operators, particularly the many who proposed new EO and HTS constellations in 2014, leverage innovative techniques to drive cost reduction and ensure ROI.”
Prateep Basu, NSR Analyst and report co-author explained, “the main launch service providers are starting 2015 with packed manifests, but to realize the full potential of these contracts, it will be critical to have fewer failures or a repeat of 2014’s delays. The manufacturing industry will be similarly busy, with commencement of procurement and production of several constellations expected alongside a healthy collection of single satellite orders.” The satellite manufacturing and launch industry is a variable, highly competitive oligopoly, but currently changing dynamics and the right value proposition can open the door to success for new players.
Satellite Manufacturing and Launch Services, 5th Edition, provides the industry’s most comprehensive and up-to-date assessment of activity in global satellite manufacturing and launch markets. Extending from 2014 market performance to expectations for the next ten years, SMLS5 addresses how emerging trends will impact satellite design and procurement and what this means for the main players. Applying extensive proprietary data and leveraging NSR’s thorough analysis of drivers in all major satellite service markets, SMLS5 offers a clear view into region, customer, and application specific demand for satellites over the coming decade.
For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com or call NSR at +1-302-295-4981.
