Growing Focus Towards MEO Deployment Steers Global Satellite Payloads on Fruitful Path

The global satellite payloads market is anticipated to expand at a significant rate through the forecast period (2017 to 2022), according to a new market study by XploreMR. Satellite payloads are core functional elements of the satellite, which plays a vital role in the satellite orbiter mission by enhancing the maximum utility capacity of the satellite.

By doing so, payloads aid in various functionalities associated with the satellite, such as navigation, communication, imaging, and others. On this premise, the payload is an essential and mandatory component in the production of satellites. The growth of the market is primarily attributed to growing technological advancements and developments in applications such as telecommunication, space exploration, remote sensing, and navigation, which are increasing the demand for satellites, thereby subsequently creating a growth opportunity for the satellite payloads market. Owing to the aforementioned facets, the global satellite payloads market will surge past valuation of US$ 14.8 Bn by the end of the forecast period

Navigation Foreseen to Remain Largest Application for Satellite Payloads

In the recent past, the demand for satellite payloads has witnessed a significant uptick in the navigation application segment, which is anticipated to drive the majority of revenue through the forecast period. The navigational payloads segment stood at a global valuation of US$ 7 Bn in 2017 and will continue to flourish in the forthcoming years.

Backed by the high need in telecommunication applications, the need for navigational payloads is shooting up, which is forecasted to remain the most sought-out product segment. Similarly, satellite payloads designed for telecommunication applications are expected to gain prominence and account for 1/5th of market share by the end of the forecast period. Likewise, payload-types such as intelligence gathering, reconnaissance, imaging, and metrology are likely to emerge as key segments, owing to high demand in surveillance applications in the defense & military sector.

Increased Medium Earth Orbit (MEO) Deployment Bolsters Adoption

On the basis of orbit type, the global satellite payloads market is segmented into low earth orbit (LEO), medium earth orbit (MEO), and geosynchronous earth orbit (GEO). By the end of the forecast period, satellite payloads developed for Medium Earth Orbit (MEO) are anticipated to procure a respectable share in global market value as manufacturers increasingly emphasize on the segment.

Owing to the budget constraints involved in payload deployment of geosynchronous earth orbit (GEO) and low earth orbit (LEO), manufactures are gradually shifting towards MEO, thereby ensuring a steady growth rate of 5% to the segment through the forecast period. While MEO deployment gains prominence, LEO segment will hold the lion’s share, backed by significant adoption and proven success rate.

Market Players Focus on Enhancing Systems to Overcome Challenges

Throughout the past, the satellite payloads have faced problems due to compatibility issues with satellite bus, which has held back the market growth to a certain extent. To overcome the shortcomings, manufacturers and researchers of the satellite systems are focusing on enhancing existing systems and eliminating such issues.

As demand for payloads continues to surge, manufacturers are extensively investing in design, development of improved size, or compact satellites. Owing to the shifting focus to deliver effective systems, the market will witness healthy growth in the years to come.

Competitive Landscape of Satellite Payloads

Some of the major market players operating in the global satellite payload market include Boeing Company, Airbus Defense and Space, Lockheed Martin Corporation, Thales Group, Mitsubishi Electrical Corporation, Harris Corporation, Honeywell International Inc., and Lucix Corporation. As the production of satellite payloads becomes expensive year-on-year, market players are focusing on cost-cutting methodologies to widen their profit margins.