Non-GEO Markets to Generate $175 Billion in Satellite Manufacturing & Launch Revenue
Emerging and Expanding LEO Constellations Eclipse GEO Markets and Open Window to Growth in Otherwise Stable Market
Cambridge, MA – March 21, 2016- Released today, NSR’s Satellite Manufacturing and Launch Services, 6th Edition report identifies non-GEO markets as the leading growth opportunities for manufacturing and launch in the next ten years, with expected cumulative revenue generation exceeding $175 billion of the $285 billion total market. GEO markets will, however, remain a key source of revenue as commercial GEO communications will continue to be the highest value market segment at a stable $6 billion per year.
Following a very successful 2014, manufacturing contracts declined 42% in 2015 with only 83 satellite orders placed by year-end. Both government and commercial players contributed to this sluggish market. “Ensuring ROI was the focal point of 2015 – commercial operators in particular were hesitant to commit to additional investments in the face of declining capacity prices, new market entrants, and an uncertain launch environment,” explained Carolyn Belle, NSR Senior Analyst and report author. “Mounting complexity of satellite design and capabilities, alongside more in-depth verification of the long-term business case of a procurement, reflects the increasingly competitive nature of the satellite industry moving forward.”
2015 launch rates were stable at just above 100 satellites, a positive sign in a year marred by three vehicle failures. Nonetheless, the lingering impact of 2014’s launch delays compounded by those resulting from 2015’s failures mean that all main providers are starting 2016 with full manifests that will be critical to clear for potential market growth to be realized.
NSR forecasts over 1,800 satellites will be launched globally during the next decade, half of which will be part of a commercial Communications or Earth Observation constellation. “Growth in end user applications, fueled by constant connectivity requirements, Big Data, and strained security environments, is creating new opportunities in the satellite manufacturing and launch market,” continued Belle. Emerging players are introducing disruption across the value chain while traditional manufacturers and launch service providers adapt their experience to evolving customer needs. For those that achieve the right blend of technology, understanding of customer needs, and company culture, demand for satellite manufacturing and launch services offers healthy opportunities in the coming decade.
About the Report
Satellite Manufacturing and Launch Services, 6th Edition, provides the industry’s most thorough analysis of the dynamics surrounding design, construction, and launch of new satellites. Encompassing global demand across all satellite applications, customer types, and from LEO to GEO and beyond, SMLS6 presents an in-depth view into prospects for manufacturers and launch service providers over the next decade. In SMLS6, NSR presents a comprehensive assessment of 2015 markets and what this means for current trends, emerging activity, and future opportunities.
For additional information on this NSR offering, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com or call NSR at +1-617-674-7743
NSR is one of the top international market research and consulting firms with a core focus on the satellite sector and related industries. Founded in 2000, NSR’s analysts have a combined 150 years of industry experience and are locally based in all regions. NSR specializes in analysis of growth opportunities across four core sectors: Satellite Communications, Broadcasting & Digital Media, Hybrid & Emerging Applications and Commercial Space, providing unparalleled market insight for global clients across the value chain.