On-Orbit Satellite Servicing Market Size, Share, Trends & Growth Analysis

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The on-orbit satellite servicing market is estimated to be USD 2.4 billion in 2023 and is projected to reach USD 5.1 billion by 2030, growing at a CAGR of 11.5% from 2023 to 2030. The market is driven by factors such as different value chain levels for vendors, increased use of dedicated satellite servicing mission extension vehicles, among others.

On-Orbit Satellite Servicing Market Forecast to 2030

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On-orbit satellite servicing Market Dynamics:

Drivers: Space debris mitigation

The demand for on-orbit services is increasing as space debris continues to pile up and the threat for operational satellite increases. On-orbit satellite services like debris removal and collision avoidance are necessary to assure safety and performance since space debris has the potential to damage or kill satellites. The need for space debris to be mitigated is projected to spur the on-orbit satellite servicing market. A growing trend for space debris mitigation will drive the on-orbit satellite services market. Space debris consists of the wreckage and non-functional spacecraft that inhabit space, including defunct and broken-up satellites, discarded upper stages from launch vehicles, and numerous other pieces of debris. The increased amount of space debris in orbit around the earth presents a seriously significant threat to spacecraft and satellites in orbit and can damage or destroy the spacecraft or satellites; therefore, on-orbit satellites service providers will develop new technology and solutions for space debris tracking, mitigation, and removal.

Ground-based and in-orbit sensors are used in debris monitoring and tracking to adjust according to space particle trajectories. With the use of this data, collision risks can be reduced and avoidance strategies can be developed. One type of debris avoidance maneuver involves modifying a satellite's orbit to steer clear of anticipated debris collisions. In addition to avoidance maneuvers, on-orbit satellite service carriers are developing new systems for debris elimination. It uses robotics technology to seize and put off space debris, decreasing the threat of collisions and the amount of particles in orbit.

As the number of satellites and spacecraft in orbit continues to grow, the need for effective debris mitigation solutions will increase. On-orbit satellite service providers that offer effective and reliable space debris mitigation solutions will be well-positioned to meet the growing demand for these services.

Restraints: Technological complexity

The on-orbit satellite servicing market, which includes life extension, salvage operations, and satellite repair and alteration, faces technological complexity as a significant restraint. Providing on-orbit satellite services requires advanced technology and specialized expertise, which can be expensive to develop and maintain. In many cases, these services require highly skilled personnel, specialized equipment, and software. For example, repairing or altering a satellite in orbit requires precise control of robotic arms, specialized tools, and communication systems.

Moreover, the technology required to provide on-orbit satellite services is constantly evolving, and companies need to invest heavily in R&D to stay competitive. This can create a high barrier for new companies looking to enter the market. In addition, on-orbit satellite services may be subject to unique technical challenges, such as operating in a zero-gravity environment, managing the effects of radiation and temperature extremes, and managing the logistics of servicing satellites that are often in different orbits and locations.

Companies need to have the resources and expertise to develop and maintain advanced technology, as well as the ability to adapt to new technical challenges as they arise.

Opportunities: Collaboration among different stakeholders

The on-orbit satellite servicing market presents opportunities for collaboration among different stakeholders in the space industry. On-orbit satellite providers collaborate with satellite operators to perceive the specific needs in their satellite networks and expand custom designed answers that meet the needs. This collaboration optimizes satellite performance and reduce expenses. Collaboration among on-orbit service companies and satellite producers focuses on growing technology and services which might be well suited with new satellite designs, that help on-orbit service providers can maintain pace with technological improvements. Similarly, the partnership with launch vendors targets to integrate satellite services seamlessly into the launch process, lowering the time and value related to deploying on-orbit satellite offerings. On-orbit satellite service carriers’ collaboration with regulatory bodies will ensure that their services comply with regulations and promote safety and sustainability in space activities. It will help to establish clear guidelines and standards for on-orbit satellite services. By working collectively, the stakeholders can optimize satellite performance, lessen charges, and promote safety and sustainability in space activities.

Challenges: Rapid advancement in satellite technology to lead to obsolescence of on-orbit satellite services

Rapid advancements in satellite technology can lead to the obsolescence of on-orbit satellite services, particularly for older satellites. Service providers may need to adapt quickly to keep pace with changing technologies. The pace of technological change in the satellite industry can be rapid, with new technologies emerging and existing technologies becoming obsolete at a fast pace. This can make it challenging for on-orbit satellite service providers to keep up with the latest developments and ensure that their services remain relevant and effective. As technology changes, so do regulatory requirements for satellite operators. On-orbit satellite service providers may need to stay up to date on these requirements and adapt their services to ensure compliance with changing regulations. Technological obsolescence can impact the quality of on-orbit satellite services, as older technologies may be less reliable or less effective than newer technologies. Service providers may need to invest in new technologies to maintain the quality of their services, which can be costly.

On-Orbit Satellite Servicing Market Ecosystem

Raw material suppliers, component manufacturers, simulator manufacturers, distributors, and end users such as satellite manufacturers and government space agencies are key stakeholders in the on-orbit satellite servicing market ecosystem. Investors, funders, academic researchers, integrators, service providers, and licensing authorities serve as major influencers in the market. The strategy of securing contracts was widely adopted by leading players, such as Maxar Technologies (US), Astroscale Holdings Inc. (Japan), SpaceLogistics LLC (US), Airbus SE (Netherlands), and Thales Alenia Space (France) to enhance their presence in the market.

Based on Service, the Active Debris Removal (ADR) and Orbit Adjustment segment is projected to lead the on-orbit satellite servicing market during the forecast period

Active Debris Removal (ADR) technologies are designed to effectively capture and eliminate space debris in orbit, either by safely deorbiting it back to Earth or relocating it to a graveyard orbit where it poses no threat to other spacecraft. Various approaches exist for ADR, including the use of robotic arms, nets, tethers, and harpoons to capture and remove debris.

ADR offers numerous benefits, foremost among them being the reduction of collisions between spacecraft and space debris. By actively removing debris, ADR helps to minimize the amount of hazardous material present in orbit, thereby enhancing the safety and sustainability of space operations. However, ADR is a highly intricate and challenging task that demands advanced technologies and substantial resources. Additionally, it raises important legal and ethical considerations, such as establishing responsibility for debris cleanup and implementing measures to prevent the generation of new debris in the future.

Currently, multiple companies and organizations, including Astroscale (Japan), ClearSpace (US), and Northrop Grumman Corporation (US), are actively engaged in developing ADR technologies. Furthermore, governments worldwide are exploring policy and regulatory frameworks to address the issue of space debris and promote the adoption of ADR technologies.

Based on End User, the commercial segment is projected to grow at the highest CAGR in the on-orbit satellite servicing market during the forecast period

The market for commercial on-orbit satellite servicing is rapidly evolving, providing a range of valuable capabilities to commercial satellite operators. These services include in-orbit refueling, repairs, upgrades, and maintenance for satellites. Leading companies such as SpaceLogistics (US) and Astroscale (Japan) are actively involved in this market, developing advanced technologies like robotic arms, fluid transfer systems, and sensors to ensure safe and efficient servicing of satellites in orbit.
The primary advantage of commercial on-orbit satellite servicing lies in its potential to significantly extend the operational lifespan of commercial satellites. By offering services that enhance longevity, operators can continue generating revenue from their satellites for an extended period. This approach also reduces the need for costly and risky satellite replacements, while enabling operators to adapt their existing satellites to match technological advancements and market demands.

Overall, the commercial on-orbit satellite servicing market is poised for rapid growth as more satellite operators recognize the value of maximizing their space assets' utility and profitability through these services.

Based on Type, the large satellite segment is projected to grow at the highest CAGR in the on-orbit satellite servicing market during the forecast period

The market for on-orbit satellite servicing for large satellites involves the upkeep, repair, and upgrade of satellites with complex subsystems and sophisticated payloads. Large satellites, on which communications, Earth observation science missions rely upon, require extreme levels of operational management to extend their operational lifetime and optimize capabilities. Due to the potentially long operational life and operating environment of space, there is an increased attention to on-orbit maintenance and upgrades. These on-orbit maintenance and upgrade service will guarantee ongoing mission functionality and reliability for missions that may encounter issues such as component failure, system malfunction, positional changes to improve performance and extend mission life expectancy.

Based on Orbit, the low earth orbit (LEO) segment is projected to grow at the highest CAGR in the on-orbit satellite servicing market during the forecast period

The Low Earth Orbit (LEO) segment of the on-orbit satellite service industry is driven by the increasing number of satellites being deployed for communications, earth observation, and research purpose. The dense satellite presence in LEO requires advanced service solutions to control traffic, limit collision threats, and successfully manage debris. The need for offerings which can lengthen satellite existence and improve performance is similarly highlighted through the emergence of tiny satellite constellations. As regulations evolve and technology advances—especially in robotics—new opportunities and challenges are shaping this market. Players in the industry are encouraged to collaborate strategically and innovate technologically in this market.

North America is expected to account for the largest share in the forecasted period .

The on-orbit satellite servicing market in North America is a vibrant and rapidly expanding sector that encompasses a diverse range of activities focused on servicing and maintaining satellites in orbit. This market involves the collaboration of government agencies, private companies, and research institutions, all contributing to the development, deployment, and commercialization of on-orbit satellite servicing technologies and services.

North America, particularly the United States, is at the forefront of on-orbit satellite servicing initiatives. NASA has played a pivotal role in advancing this field through programs like the NASA Satellite Servicing Capabilities Office (SSCO), which concentrates on developing cutting-edge technologies such as robotic systems, tools, and spacecraft rendezvous and docking capabilities.

Private companies in North America have also emerged as significant players in the on-orbit satellite servicing market. These companies offer an array of services including satellite refueling, repairs, upgrades, and maintenance. Notable examples include SpaceLogistics (US), specializing in satellite life extension services, and Northrop Grumman Corporation (US), which provides satellite servicing and robotic capabilities.

The North American market benefits from a robust aerospace and technology industry, strong research and development capabilities, and a supportive regulatory environment. The increasing demand from satellite operators to maximize the lifespan of their assets, reduce costs associated with satellite replacements, and adapt to evolving market needs through upgrades and modifications drives the market's growth.

Europe is expected to account for the second largest share in the forecasted period.

The growing demand for satellite extension missions, debris removal, and an increasing number of aged satellites are some of the major driving factors in the European on-orbit satellite servicing market. This is supported by rising investment in the space technology segment by both government and private players, along with advancements in robotics and autonomous systems, which enables significant growth in the market. Strategic investments by European Space Agency in technologies for autonomous docking and robotic servicing, as in the ADRIOS mission, further add to the growth in this region.

Asia Pacific is expected to account for the third largest share in the forecasted period.

The on-orbit satellite-servicing market growth in Asia-Pacific is attributed to the increasing satellite deployment into orbit to meet the demand for communication, earth observation, and navigation services. The increased capability to service on-orbit satellites are now enabled through recent technological advancements in robotics and AI, strengthened by major government investments in space programs of countries such as China, India, and Japan. With this increased sense of awareness of space debris and the need for sustainable operations, there is a growing adoption of servicing solutions to mitigate collision risks. Emerging players, especially in South Korea, further support the growth of the market in this region.

On-Orbit Satellite Servicing Market by Region

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Key Market Players

Players such as Maxar Technologies (US), Astroscale Holdings Inc. (Japan), SpaceLogistics LLC (US), Airbus SE (Netherlands), and Thales Alenia Space (France). The report covers various industry trends and new technological innovations in the on-orbit satellite servicing’ market for the period, 2019-2030.

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Scope of the Report

On-Orbit Satellite Servicing Market Highlights

This research report categorizes the On-orbit satellite servicing  market based on Service, Type, End User, Orbit, and Region.

Recent Developments

• In February 2023, Gilmour Space Technologies and Atomos Space announced the signing of an MOU to explore a multi-year contract for Gilmour and Atomos to mutually purchase the services for launching and in-space transportation.
• In September 2022, Orbit Fab jointly announced the partnership with ClearSpace, joining their £2.2 million contract awarded by the United Kingdom Space Agency (UKSA) to equip the ClearSpace debris-removing satellites with refueling capabilities. To refuel in orbit, ClearSpace will integrate Orbit Fab’s RAFTI™ refueling valve in their Active Debris Removal (ADR) satellite design.
• In September 2022, Thales Alenia Space and its partners have been chosen by the European Commission to lead EROSS IOD, a program dedicated to On-Orbit Servicing.
• In April 2022, Orbit Fab and Neutron Star Systems (NSS) established a cooperative agreement for the co-development of satellite refueling solutions with green propellants. The agreement lays the foundation to increase the range of refuellable propellants by combining NSS propellant-agnostic electric propulsion technology with Orbit Fab’s refueling interfaces and tankers.
• In March 2022, Altius Space Machines, Inc. and US Department of Defense signed a contract. The contract enabled Altius to assist Maxar in developing two flight-ready robotic arms, each 2 meters in length. Each arm will be underactuated, with a single motor running a tensioned cable system to transmit torque to any number of joints, reducing the weight and cost. Altius will supply novel and capable interfaces for each robotic arm, a key technology for the success of the project.

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