High Altitude Pseudo-Satellite Market

[153 Pages Report] The High Altitude Pseudo Satellite Market size is projected to grow from USD 85 million in 2023 to USD 189  million by 2028, at a CAGR of 17.2% from 2023 to 2028. The market is driven by factors such as advancing payload integration techniques for versatile HAPS operations.

High Altitude Pseudo Satellite Market Forecast to 2028

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High altitude pseudo satellite market Dynamics:

Drivers: Increasing usage of global connectivity

Global connectivity is a key driver for the high altitude pseudo satellite market as the increasing demand for seamless and reliable internet connectivity across the globe, high altitude pseudo satellite technology offers a viable solution to bridge the digital divide and connect remote and underserved regions. High altitude pseudo satellite provides global coverage, enabling connectivity in areas where terrestrial infrastructure is limited or non-existent. This is particularly beneficial for industries such as maritime, aviation, and rural areas where traditional internet connectivity options may not be feasible. High altitude pseudo satellites also play a crucial role in disaster management and emergency response scenarios, providing immediate connectivity when terrestrial networks are disrupted. The ability to connect remote locations, facilitate real-time communication, and enable access to digital services fuels the demand for high altitude pseudo satellite and drives market growth. For instance in October 2022, the Kraus Hamdani Aerospace’s K1000ULE took part in Project Convergence 21 exercise, providing aerial network coverage for hours during testing of autonomous capabilities that could eventually be integrated into the U.S. Army’s next-generation platforms.

Restraints: Durability limits the efficiency of high altitude pseudo satellite

Durability can arise due to the harsh environment of the stratosphere, exposure to atmospheric conditions, mechanical stresses, and other factors. High altitude pseudo satellites operate in stratosphere, is characterized by extreme temperature variations, high winds, and low atmospheric pressure. These conditions can subject the vehicle's structure, components, and materials to significant stress, potentially leading to wear, fatigue, and degradation over time. Prolonged exposure to atmospheric turbulence, wind shear, and mechanical vibrations can lead to structural fatigue and wear on the vehicle's airframe and components. Over time, this can impact the vehicle's stability and overall operational effectiveness.

High altitude pseudo satellite experience frequent shifts between extreme temperatures due to changes in sunlight and the Earth's shadow. These thermal cycles can stress materials and components, potentially leading to cracks, deformation, or reduced performance. HAPS can encounter mechanical stresses during launch, retrieval, or turbulent stratospheric conditions. These stresses can impact structural integrity and contribute to wear and tear on critical components. Despite ongoing advancements in high altitude pseudo satellite technology and the introduction of composite materials, efficiency gets affected due to durability thus remains a key challenge in fully realizing the potential of high altitude pseudo satellite.

Opportunities: Increasing need for high-speed, reliable communication networks in remote areas

Bridging the digital divide presents a significant opportunity for the high altitude pseudo satellite market. The digital divide refers to the gap between those who have access to reliable and high-speed internet connectivity and those who do not, often seen in underserved or remote areas. High altitude pseudo satellite has the potential to reach these underserved regions and provide them with essential connectivity. By leveraging satellite technology, service providers can overcome geographical barriers and offer internet access to areas where terrestrial infrastructure is limited or nonexistent. SoftBank launched its own Non-terrestrial Network (NTN) service to provide connectivity solutions from high altitudes and orbit in the five African countries that are Djibouti, Egypt, Kenya, Morocco, and Rwanda respectively.

This opportunity is particularly relevant in rural and remote communities, developing countries, and areas affected by natural disasters or infrastructure challenges. By expanding access to high altitude pseudo satellite, individuals and communities can benefit from improved educational opportunities, enhanced healthcare services, economic development, and increased communication capabilities. Bridging the digital divide not only contributes to social inclusion and equality but also opens new markets for high altitude pseudo satellite. Governments, NGOs, and private companies are increasingly recognizing the importance of closing the digital divide, leading to potential partnerships, funding opportunities, and supportive policies for high altitude pseudo satellite deployment in underserved areas. With advancements in satellite technology and cost-effective solutions, high altitude pseudo satellite has a significant role to play in bridging the digital divide and enabling digital empowerment for all.

Challenges: Energy storage is a challenge for high altitude pseudo satellite.

Energy storage is a significant challenge for high altitude pseudo satellites (HAPS) due to the extended duration of their missions and the unique operational environment in which they operate. HAPS relies on solar energy for power generation but needs effective energy storage solutions to ensure continuous operation during nighttime, periods of low sunlight, and adverse weather conditions. HAPS operate at altitudes where they can experience prolonged periods of darkness during the night. During these times, they must rely on stored energy to power their systems, including communication equipment, sensors, and avionics. HAPS operate in the stratosphere, which exposes them to extreme temperatures, high winds, and other environmental stressors. Energy storage systems need to withstand these conditions and maintain their functionality. HAPS carry various payloads, communication systems, and avionics that require a continuous and stable power supply. The energy storage system must meet these power demands without interruptions.

To overcome these challenges, the industry is focusing on developing lithium-sulphur batteries and adopting new battery technologies ranging from silicon nanowire anode technology to all-polymer batteries that are based on the bipolar lithium-ion battery module. The APB Corporation (Japan) and Sanyo Chemical Industries (Japan) are working on an all-polymer battery, with the aim of eliminating high voltage wiring parts and increasing the energy density. HAPSMobile tested higher-power lithium-metal battery packs with a significantly higher specific energy of 439 Wh/kg. Further data and testing will be required to validate the use of this technology for HAPS. It should be noted that some stakeholders indicated that the reusability of existing types of batteries after an operation is currently limited as well, with the batteries needing to be replaced after every flight. Hence, there is still room for improvement in this regard as well.

High Altitude Pseudo Satellite Market Ecosystem

Prominent companies and startups that provide high altitude pseudo satellite and their services, distributors/suppliers/retailers, military organizations, defense contractors, and end customers are the key stakeholders in the high altitude pseudo satellite market ecosystem. Investors, funders, distributors, and service providers serve as the major influencers in the market.

Prominent companies in this market include well-established, financially stable manufacturers of high altitude pseudo satellite with a global presence. These companies have been operating in the market for several years and have a diversified product portfolio, state-of-the-art technologies, and robust global sales and marketing networks. Prominent companies include AeroVironment, Inc. (US), Airbus (Germany), Prismatic Ltd. (UK), Thales Alenia Space (France), and Softbank Group Corp. (Japan).

Private and small enterprises are companies with a comparatively limited product portfolio, financial strength, and specialization in specific systems and subsystems. Some companies could enter strategic partnerships and joint ventures with prominent companies to gain a strong foothold in the high altitude pseudo satellite market. Currently, private and small enterprises are looking at funding and investments for the development of advanced high altitude pseudo satellite. Astigan Limited (UK), UAVOS Inc. (US) are some of the private and small players in this ecosystem.

UAVs platform to have highest market share in the High altitude pseudo satellite market 2023

UAVs, or Unmanned Aerial Vehicles platforms offer several benefits compared to traditional satellites, including cost-effectiveness, quicker deployment times, and the flexibility to be easily relocated or retrieved for maintenance and upgrades. HAPS UAVs can be solar-powered, enabling prolonged flight durations, and they can carry a diverse range of payloads, such as communication gear, sensors, and cameras.

An illustration of UAV technology is Zephyr, developed by Airbus (Germany), capable of remaining in flight for up to 25 days in its lengthiest mission, providing local augmentation and swift deployment capabilities for various purposes, including communication, surveillance, and environmental monitoring. Two well-known versions of HAPS UAVs are the Sunglider by Aerovironment (US), and the Astigan A3 by Astigan Ltd (UK), along with the PHASA 35 offered by Prismatic Ltd (UK).

Communication Application Segment have highest market share in the High altitude pseudo satellite market 2023

"The high altitude pseudo satellite segment encompasses communication applications, which involve the utilization of HAPS platforms to establish and enhance communication links between various points across the Earth's surface. HAPS can function as airborne relay stations, extending communication coverage to remote or underserved regions, while also providing additional capacity and backup to existing communication infrastructure. These platforms come equipped with communication tools, including transceivers, antennas, and signal processing systems. Consequently, HAPS have the capability to offer internet connectivity to rural and remote areas that lack access to conventional communication networks.

In 2020, Loon (US) conducted trials of a balloon-based 4G internet service, serving 35,000 customers and initially covering an area of 50,000 square kilometers to provide internet access to remote regions of Kenya. In June 2021, SoftBank Group Corp. (Japan) introduced its own Non-terrestrial Network (NTN) service, offering connectivity solutions from high altitudes and orbits.

Commercial end user segment to have the higher market share for the High altitude pseudo satellite market in 2023.

Commercial HAPS are equipped with communication capabilities, such as 4G/5G base stations and satellite-like transponders, which provide high-speed internet and cellular connectivity to remote or underserved areas. This proves especially beneficial in regions lacking terrestrial infrastructure or during disaster recovery efforts.

In 2020, Google's subsidiary, Loon (US), tested a 4G internet service using balloons, serving 35,000 customers and initially covering an area of 50,000 square kilometers to deliver internet access to remote regions in Kenya. High-altitude HAPS are employed for scientific research, specialized communication requirements, and atmospheric monitoring. Furthermore, in June 2021, SoftBank (Japan) launched its Non-terrestrial Network (NTN) service to offer connectivity solutions from high altitudes and orbits.

The European market is projected to contribute highest growth from 2023 to 2028

Europe is projected to be the highest growth in high altitude pseudo satellite market during the forecast period as major companies such as Prismatic Ltd. (UK), Airbus (France), and Thales Group (France are based in the Europe. These players continuously invest in the R&D of new and advanced technology used in high altitude pseudo satellites.

High Altitude Pseudo Satellite Market by Region

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Key market players

The High altitude pseudo satellite comapnies is dominated by a few globally established players such as AeroVironment, Inc. (US), Prismatic Ltd. (UK), Airbus (France), Thales Group (France), and SoftBank Group Corp. (Japan).

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Scope of the Report

High Altitude Pseudo Satellite Market Highlights

This research report categorizes high altitude pseudo satellite market based on Platform, Application, End User and Region.

Recent Developments

• In July 2023, PHASA-35 successfully completed a stratospheric flight trial in June 2023, exceeding an altitude of 66,000ft, before landing safely in New Mexico, US.
• In March 2023, Thales group signed a contract with the European Commission for the EuroHAPS demonstration project worth USD 45.4 million. The contract includes development of three different stratospheric platforms to test a range of capabilities and missions including intelligence, surveillance, and reconnaissance (ISR) as well as communications and electronic intelligence. Light detection and ranging (LIDAR) observation, to detect and classify targets at sea or on land including in vegetation cover, and a meshed broadband communications network will also be trialled.
• In October 2022, Airbus has signed a contract with Salam, a leading Saudi information & telecommunication company and part of the Mawarid Media & Communications Group (MMCG), to progress the development of private networks, internet of things (IoT) applications, disaster management solutions and other connectivity and high-altitude Earth observation services from the stratosphere to serve the Kingdom of Saudi Arabia.
• In November 2022, Airbus HAPS Connectivity Business (Airbus HAPS) signed a Letter of Intent (LoT) with Space Compass Corporation of Japan for a cooperation agreement to service the Japanese market with mobile connectivity and earth observation services from the Stratosphere.
• SoftBank Group and Lendlease Corporation formed a joint venture in April 2022, called HAPSMobile Australia Pty Ltd. to explore the deployment of HAPS (High Altitude Platform Station) in Australia.
• In September 2021, Thales group signed a contract with the European Commission for the HEMERA 2020 demonstration project. The demonstration flight of an open stratospheric balloon was carried out on 11th September 2021 at Kiruna, Sweden, and was designed to test the airship’s emergency recovery capacity.
• In June 2022, a latest test flight of Zephyr was conducted at US Army’s Yuma, Arizona Proving Ground. It flew for 63 days, cruising at 74 km/hr (40 knots) ground speed and at an altitude of 21,488.4 m (70,500 ft).
• In September 2021, SoftBank Group has acquired approximately 200 patents, including patents pending, for High Altitude Platform Stations (HAPS) from Loon LLC. The patents are related to network technologies, services, operations, and aircraft for HAPS.
• The Airbus Zephyr S completes a successful test flight campaign in September 2021 at US Army’s Yuma, Arizona Proving Ground. This campaign consists of six flights in total, four low level test flights and two stratospheric flights.  The stratospheric flights flew for around 18 days each, totaling more than 36 days of stratospheric flight in the campaign.
• In December 2020, Airbus successfully completed a test flight campaign for its Zephyr S in Arizona, U.S. The Zephyr S fitted with new software control systems and specific flight test instruments that demonstrated take-off, climb, cruise, upgraded flight control and descent phases, followed by successful landings.
• In October 2020, PHASA-35, a 35-meter wingspan solar-electric aircraft, successfully completed critical endurance trials for 72 hours with Defence Science and Technology Laboratory (DSTL)’s (UK), communications sensor payload, in a simulated environment that models the harsh stratospheric conditions in which the aircraft is designed to operate
• In October 2020, AeroVironment Inc. successfully completed test flight campaign reaching an altitude of more than 60,000 feet above sea level and successfully demonstrating mobile broadband communication on consumer smartphones, linking teams in Tokyo, New Mexico, and Silicon Valley for 20 hours test flight.
• In January 2020, Thales Group signed a contract with the Defence Procurement Agency of France for a full-scale autonomous Stratobus demonstrator airship. The aim of the contract is to improve and expand France’s defense capabilities by stratospheric platforms.
• In October 2019, Airbus has partnered with U.S. based Amprius Inc. for the development of new generation batteries based on Silicon Nanowire Anode-based Lithium-Ion Batteries which helps to expand production capability to match near term needs of the Zephyr.

Key Questions Addressed by the Report :

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