The European satellite manufacturing and launch systems market is estimated to register a CAGR of more than 10% during the forecast period.
- Europe is one of the largest markets for satellites in the world. Cumulatively, the European region has the second-largest public space budget in the world with numerous active satellite R&D programs and manufacturing facilities spanning different European countries.
- The increasing budget toward R&D, especially in areas, like materials and satellite manufacturing technologies, are propelling the growth of the market in Europe.
- The presence of a large number of satellite manufacturers locally is helping the European customers to launch their satellites at relatively cheaper costs. In addition, several satellite end users in Europe also developed their own satellite manufacturing capabilities, allowing them to reduce the overall project costs.
- The growth in the demand for small satellites and the advent of reusable launch vehicles are some of the factors that are also propelling the industry in Europe.
Key Market Trends
Commercial Segment Held the Largest Market Share in 2019
In 2019, the commercial segment held the largest market share in the Europe satellite manufacturing and launch systems market. The high share of the commercial segment is primarily attributed to a large scale-demand from the communication sector in Europe. The demand for the SatCom industry is one of the most important drivers for the European commercial satellite manufacturing industry. Satellites launched for SatCom applications represent as much as 60% of all the satellite launches in Europe, with the demand from the commercial SatCom end-users occupying a major share in the overall SatCom launches. Several commercial satellite launches are being done in Europe. For instance, in March 2020, OneWeb, a global communications company announced the successful launch of 34 satellites, aboard a Soyuz launch vehicle. The launch is the second of its satellite launches in six weeks, that brought the total number of OneWeb's satellites in the constellation to 74. The total number of satellites in the constellation is planned to be 648. Thus, several launches of commercial satellites are planned over the forecast period, thereby enhancing the market prospects during the forecast period.
Russia is Projected to Dominate the Market During the Forecast Period
In segmentation by country, Russia held the largest market share in 2019, and it is expected to continue its dominance during the forecast period. Russia’s federal communications agency plans to develop a digital economy in the country using satellite-based technologies, by improving satellite communications throughout Russia. The country is in plans to develop satellites for highly elliptical orbits, with the production commencing in 2020 and the launches of the satellites expected by 2023. As Russia is moving towards the 5G, the country is planning to adopt technologies like Artificial Intelligence (AI) and Virtual Reality (VR). For all these applications, the government is viewing satellite-based connectivity as an important means of achieving its technological developmental goals. The satellite manufacturing industry in Russia is expected to undergo a major consolidation. The country plans to consolidate its five public satellite development firms into either two or three companies to avoid "unnecessary competition and duplication" and increase productivity. By virtue of all these factors, the market is projected to witness higher growth during the forecast period.
ArianeGroup, Thales Group, OHB SE, Avio SpA, and OneWeb are some of the prominent players in the market. The market is fragmented, with the presence of several satellite manufacturers in addition to launch system providers in the region. With the advent of reusable rockets, launch systems manufacturers are trying to produce these reusable rockets, thereby reducing the launching costs and increasing profits. Players are forming partnerships in this regard, to explore the opportunities in the aforementioned area. For instance, in February 2019, ArianeGroup and CNES (the French space agency) signed a memorandum of understanding for a new acceleration platform that will work to develop new satellite launchers, including reusable launch systems. Such partnerships are expected to enhance the prospects of the players involved, during the forecast period.
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