LEO satellite market set to rocket to $102.90 bn

SEPTEMBER 2024

In our 2023 LEO satellite market review we concluded “The year 2023 was just a glimpse of what’s on the horizon for the dynamic and ever-evolving LEO satellite market” and this has proven to be true. In 2024, the LEO satellite market is going from strength to strength, and now is an opportune moment for investors and companies to capitalize on its growth. Several factors have contributed to this, including technological advancements, increased demand for global connectivity, and strong government and private sector investments.

What’s driving the growth?

 A key driver behind the growth of the LEO satellite market is the global surge in demand for satellite-based internet services. Companies and governments alike are looking for cost-effective solutions to provide high-speed, reliable internet, especially in remote and underserved areas. LEO satellites, which orbit closer to Earth than traditional satellites, offer lower latency and higher data transfer speeds, making them ideal for this purpose. As a result, the LEO satellite market is expected to grow significantly, with projections showing a compound annual growth rate (CAGR) of 13.4% through 2032, reaching a market size of $102.90 billion by that time.

Another key factor is the rapid advancement in satellite technology. Innovations in electric propulsion systems, such as ion thrusters and Hall-effect thrusters, have made LEO satellites more efficient and cost-effective to launch and maintain. This has not only lowered barriers to entry but has also allowed for longer mission durations and improved satellite performance. Companies are also developing high-throughput satellites (HTS) and working on integrating LEO constellations with terrestrial networks to provide seamless global coverage. These advancements are crucial for the telecommunications industry, which relies heavily on satellite services to meet the growing demand for data and connectivity.

The rise of the Internet of Things (IoT) is another major growth driver for the LEO satellite market. With IoT devices proliferating across industries, the ability to gather real-time data from sensors and devices, even in remote locations, has become increasingly valuable. LEO satellites are well-positioned to meet this demand, providing faster data transfer rates and lower latency than other satellite types. This trend is expected to continue driving the demand for LEO satellites, particularly in sectors like agriculture, environmental monitoring, and disaster management.

The global nature of the LEO satellite market adds another layer of opportunity. North America, particularly the United States, leads the market with strong government investments and a robust private sector that continues to innovate and expand satellite capabilities. Asia Pacific is also experiencing significant growth, with countries like China, India, and Japan heavily investing in satellite technology and space infrastructure to improve connectivity and enter the global market. This regional diversity highlights the broad appeal and importance of LEO satellites in addressing global connectivity and defence challenges.

Major Developments in the last six months

Over the past six months, several significant investments have fueled the growth of the low Earth orbit (LEO) satellite market, positioning it for continued expansion.

1. Telesat Lightspeed Constellation. One of the most notable investments is the $2.54 billion in funding secured by Telesat for its Lightspeed satellite network. This funding, provided by the Canadian and Quebec governments, will support the deployment of 156 LEO satellites, with plans to launch the first batch in 2026. The project aims to deliver high-speed broadband services, especially to underserved regions, and will contribute significantly to Canada’s aerospace industry by creating thousands of jobs
2. Yahsat and Airbus Partnership: In June 2024, Yahsat, a UAE-based operator, ordered a pair of LEO satellites from Airbus. This is part of a broader $1.1 billion investment program designed to enhance Yahsat’s multi-orbit satellite capabilities, focusing on telecoms and Earth observation. This partnership will bolster Yahsat’s future direction and expand its service offerings across different sectors, including direct-to-device satellite connectivity. 
3. Amazon’s Project Kuiper: Another major player in the LEO satellite space is Amazon, which has made significant strides with its Project Kuiper. The company plans to deploy a constellation of over 3,200 satellites to provide global broadband coverage. Amazon opened a manufacturing facility in Washington in April 2024 to produce up to five satellites per day. Despite being behind SpaceX’s Starlink in deployment, Amazon is investing heavily in catching up, with its first batch of satellites expected to launch in late 2024
4. OneWeb and Eutelsat Merger: OneWeb, which merged with Eutelsat last year, continues to invest in its LEO satellite network. The company is planning a next-generation constellation, expected to cost around $4 billion. Although it is seeking alternative financing options to reduce its capital expenditure, the merger strengthens its position in the competitive satellite broadband market

 These investments highlight the growing confidence in the LEO satellite market, driven by the increasing need for global connectivity, particularly in underserved regions, and advancements in satellite technology. The continued support from governments and private sector investments underscores the transformative potential of LEO satellites in telecommunications, defence, and Earth observation applications.

OCTOBER 2023

The growing Low Earth Orbit (LEO) Satellite market set to rocket to $47bn!

With revenue projected to reach ciRca. $46.7 billion (USD) by 2032, according to Polaris Market Research, the market is forecasted to expand at a compound annual growth rate of approximately 12.2% between 2023 and 2032. This is an exciting time for organisations within the LEO Satellite market with this year, in particular, being a pivotal one due to unprecedented growth and expansion across diverse sectors. Thanks to technological advancements, policy changes, and increasing investor interest, the LEO satellite domain has garnered tremendous attention, not just within the aerospace industry, but across global markets.

What are LEO satellites?

In short, LEO satellites operate at altitudes ranging from 160 to 2,000 kilometres above the Earth's surface. Their closer proximity to Earth compared to traditional geostationary satellites gives them significant advantages, such as reduced latency and increased data transfer speeds. This makes LEO satellites particularly well-suited for tasks like internet connectivity and real-time communication.

What’s driving growth?

Several factors are driving growing. From the end-users perspective, there is strong desire for internet connectivity in remote parts of the word. Companies like SpaceX and OneWeb, are revolutionising connectivity by using LEO satellites to deliver global, high-speed internet coverage. 

Other growth drivers include: earth observation, data collection, reduced launched costs (reusable rockets), more favourable policy and regulations as Governments around the world are recognise the potential of LEO satellites. 

The key LEO satellite organisations 

The market isn't dominated just by giants like Starlink or OneWeb. Several smaller players and start-ups are contributing to market diversification with specialized satellite services, data analytics solutions, and technological innovations. Collaboration is becoming a buzzword, with tech giants, aerospace players, and start-ups partnering to explore synergies. Such partnerships are ensuring that the market remains dynamic, competitive, and customer-centric. Other players include: Project Kuiper, Telesat, Avant, Intelsat

Other companies with big LEO programmes:

• ABL Space Systems
• Airbus
• Arianespace
• Astra Space, Inc.
• Blue Origin
• China Aerospace Science and Technology Corporation (CASC)
• Firefly Aerospace Inc.
• Interorbital Systems
• Mitsubishi Heavy Industries
• Northrop Grumman Corporation
• Rocket Lab USA, Inc.
• United Launch Alliance, LLC

Jobs in the LEO satellite industry

Currently, there aren't many agencies specialising in low earth orbit recruitment. However, that doesn't meant there is a lack of jobs in the low earth orbit satellites industry. A quick search on Indeed for jobs in LEO satellite will display over 700 active roles. This isn’t surprising given the growth in this industry. Since 2021, we have been First Point Group has recruited for LEO satellite companies across the globe for a variety of roles including: 

• LEO Terminal Engineer 
• Core Support Engineer 
• Ground Support Engineer
• Network Engineer 
• Satellite Baseband Support Engineer 
• Technical Operations Lead 
• Major Incident Manager
• Associate Test And Integration Engineer (RF/satellites)
• Data Engineer
• Field Service Engineer
• IP Design Engineer
• L2 Core Support Engineer
• Senior Sales Manager Telecoms Carriers
• Regional Sales Leads
• Account Managers

LEO really is a hot market now from a recruitment perspective and things don’t show any sign of slowing in the near future. Over the next decade, it wouldn't be surprising to see more recruitment agencies in the low earth orbit industry and satellite recruitment.

Predictions for the future

The LEO satellite market in 2023 stands at an exciting intersection of technology, commerce, and global connectivity. The coming years are set to witness a wealth of “space benefits”. From farmers in Africa receiving real-time weather updates to students in remote Asian villages accessing high-speed internet for online education, the ripple effects of this market are vast and transformative.

While challenges exist, the LEO satellite market's potential in enhancing global connectivity, fostering economic growth, and promoting international cooperation is undeniable. The year 2023 is just a glimpse of what’s on the horizon for this dynamic and ever-evolving market and First Point Group will be there alongside our clients at the cutting-edge of technology!