The satellite industry has grown from a bleeding edge concept of the 1950s to an emerging industry. Ambitions and outlooks are optimistic, but results are lagging; despite this, the industry is currently estimated at $250 billion, 70% of the space economy. Buoyed by advancements in space technology, manufacturing cost reductions, and global capital inflows, analysts expect the industry’s value to triple to $750 billion by 2035. Similarly, satellite launches are expected to balloon from 3,000 to 42,000 over the same period. Addressable in segments, the satellite industry is split into three, namely Global Navigation Satellite Systems (GNSS), Geospatial Intelligence (GEOINT), and Satellite Communications (SatCom).
Global Navigation Satellite Systems are satellite constellations providing positioning, navigation, and timing services. Today, GNSSs are operated by state or supranational organizations; the most widely known is the Global Positioning System (GPS), which was developed and is operated by the U.S. Department of Defense. Using an array of satellites, GNSS utilizes radio signals to triangulate locations on Earth. GNSSs are accurate within 1 to 100 meters of the relevant target location, depending on the accompanying equipment. Companies operating in this segment include Lockheed Martin, which designs and builds satellites; Google Maps, the real-time mapping and navigation software application; and Uber, the ride-sharing service that uses GPS to track driver locations and trip destinations.
Geospatial Intelligence involves collecting and analyzing space-derived data, i.e., images, temperature, etc., to generate Earth and Earth-based activity insights; these include but are not limited to surface and field analytics, network and location analytics, and geo-visualization. Today, the GEOINT segment has an estimated value of over $66 billion and is projected to reach $209 billion by 2030 at a CAGR of 12.4%. Notable participants in this segment include Muon Space, which uses satellites and sensors to collect and track climate data; Skywatch, which provides access to and distributes earth observation and remote sensing data; and Arbol, which utilizes earth observation data to provide climate and weather risk management services.
Satellite Communication is the transmission of radio signals using satellites and ground stations for various use cases, e.g., TV, telecommunications, and military applications. Depending on the technology applied, many SatCom categories exist; the most common are 1) Low Earth Orbit (LEO), which denotes satellites 160 to 2,000 kilometers above the Earth. LEO satellites have an orbit time of 90 minutes, relatively small coverage areas, and strong signals. Given the limited range, LEO satcom requires many satellites for expanded coverage and is applied to Internet of Things technology, government and tactical networks, and emergency response and aid services. 2) Medium Earth Orbit (MEO) satellites have an orbit range of 2,000 to 35,786 kilometers above Earth. MEOs are typically used for GNSS services. 3) Geostationary Earth Orbit (GEO) SatCom has the most extensive coverage area due to being the farthest above the Earth, i.e., greater than 35,786 kilometers. GEO SatCom can focus capacity as required and is typically applied to in-flight Wi-Fi, uncrewed aerial vehicles, and remote or isolated area connectivity. Companies with a presence in this segment include Amazon’s Project Kuiper, established to launch LEO satellites to increase internet connectivity; Microsoft Azure Orbital Ground Station, which connects satellite data to Microsoft’s cloud computing services; and finally, Krucial (R3 IoT) Limited, which utilizes SatCom for environmental monitoring.
Sources: National Geographic, GPS.gov, McKinsey & Company, BCG, Inmarsat.com, the Satellite Industry Association, Techtarget.com, and Heavy.ai