The Asia-Pacific satellite manufacturing and launch systems market is poised to register a CAGR of 4%, during the forecast period 2020 - 2025.
- Over the years, the business of space exploration has changed substantially, with private corporations venturing into the design and manufacturing of satellites and launch vehicles. The increasing investment in the space sector from private investors is expected to drive the market in the upcoming period.
- The introduction of reusable launch vehicles has drastically reduced the cost of a satellite launch, and the potential for mass production of satellites could further slash the associated development costs in future.
Key Market Trends
Military Satellites Account for a Major Market Share
In 2019, the military segment accounted for a major share of the Asia-Pacific satellite manufacturing and launch systems market, owing to the increasing demand for satellites for conducting a variety of mission profiles. With the advent of technology, the nature of battles has changed drastically. For various military requirements, including communication, the defense agencies around the world require space capability to meet the demand for more operationally responsive forces. Moreover, the growing utilization of commercial satellite platforms for dual (military and civil) purposes has boosted the market. China, India, and several other nations in the region use satellite telemetry data to provide satellite tracking, telemetry, and command to its relevant users through several ground-based antennas that are located at various locations globally. Increasing the use of satellite-based maritime surveillance and border protection is a major trend due to its rapid evaluation in situations during extreme weather conditions and a warfare crisis. Countries are extensively planning to upgrade or procure a fleet of optical satellites to help them safeguard and monitor national interests. For instance, in April 2019, India launched the Emisat, a military satellite that is capable of monitoring and providing the locations of enemy radar sites deep in their territory. Thus, the development and launch of such advanced satellites would drive the market in focus in Asia-Pacific during the forecast period.
China is Expected to Exhibit the Highest Growth Rate
The augmented demand for satellites has resulted in the initiation of several R&D programs that are either government-funded or financed by private entities. Several launches have been carried out during the last couple of years for fulfilling the demands of both commercial and military operators. China is racing ahead to develop an indigenous navigation system. On this note, in April 2019, China launched a BeiDou satellite from the mountainous Xichang spaceport. China envisions to complete its BeiDou constellation by 2020. Since 2000, China has launched 44 BeiDou satellites that include test models (now defunct) and previous-generation satellites that provide regional navigation coverage over the Chinese territory and its neighboring regions. In 2019, China achieved 34 orbital launches and surpassed the United States, which achieved a mere 21 launches. China plans to launch the world’s biggest space telescope, the world’s heaviest rocket, and a space station to rival the ISS in the upcoming period. Such developments are anticipated to drive the China segment of the market in focus during the forecast period.
The Asia-Pacific satellite manufacturing and launch system market is fragmented in nature due to the presence of several local and global players. Besides, the presence of several private and government satellite manufacturing entities in the region enhances the competition in the market. The South Asian region is witnessing tremendous growth in satellite launches every year. On this note, in October 2019, China Rocket unveiled two new solid fuel and liquid propellant rockets of the Smart Dragon and Tenglong families of space launch vehicles. Since traditional satellite manufacturers are not the sole investors of the market in focus, a radical change in the market dynamics is anticipated to emerge. Hence, to retain their competitive edge, some satellite ventures have plans to manufacture space systems, payloads, or subsystems and components in-house. Also, major technological shifts, such as miniaturization, and the advent of reusable satellite launch vehicle systems would necessitate subsequent adaptation for seizing emerging market opportunities. Moreover, owing to the long R&D period associated with the satellite industry, some companies are exposed to certain risks associated with design responsibility, the development of new production tools, more capital and funding commitments, delivery schedules, and unique contractual requirements. These risks, if not resolved swiftly, can affect the financial status of the market players and expose them to revenue fluctuations.
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