Global Satellite Commercial-Off-the-Shelf Components Market Extends at a Healthy CAGR of 1.2 by 2031

Introduction

As the need for smaller satellites has grown, so has the frequency with which advancements in satellite electronics are made. New global information networks and electronic information management systems have been the subject of extensive study to reduce the satellite's cost, size, and inefficiency. The space industry has widely adopted COTS (commercially available off-the-shelf) components because of their effective radiation shielding and high quality. Space electronics use commercial off-the-shelf (COTS) components to cut expenses and development times. Due to the rising need for satellite-based connectivity services across numerous applications, including communication, navigation, and Earth observation, the global space industry has been expanding quickly. According to the Satellite Industry Association (SIA), the global space economy comprised of satellite manufacture, launches, associated services, and ground equipment was valued at USD 371 billion in 2020.

Market Dynamics

Technological Expansion in Electronic Components and Associated Devices for IoT Enabling Services Drives the Market

Due to increased expenditures on IoT-based satellites, there have been ongoing improvements in electrical components and related devices such as antennas, routers, sensors, and modems during the past few years. Globally, businesses are developing reasonably scalable and hybrid characteristics that enable capabilities comparable to those of the components used in conventional large satellites. Satellite communication necessitates particular antenna requirements, including gain, size, weight, sidelobe level, and mobility, to increase the satellite's tracking speed. Hence, there is a trend toward employing innovative lightweight composite materials to produce inexpensive antennas. Satellite operators have, for instance, invested in flat panel antennas based on meta-material that enable appropriate mobility, backhaul, and content delivery while lowering the antenna's total footprint. IoT-enabled modems exhibit a similar degree of technological advancement. It is a well-known fact that terrestrial connectivity-powered IoT networks now dominate. To transition their IoT connectivity from terrestrial to satellite, end users must make substantial investments in infrastructure.

Rising Demand for Reconfigurable Satellite Payloads Provides Tremendous Opportunities

Reconfigurability is a component of the satellite industry that is evolving. The deployment of complex/versatile payload solutions has begun to necessitate better onboard payload tasking, data storage, and associated processing. Mission-wide security considerations necessitate this. This results in integrating pertinent space gear (electronics involved with data processing and onboard computing) with existing hardware (the default design). As the demand for onboard computing increases, satellites will be outfitted with more commodity command and data-handling hardware components.

Numerous companies, including Xilinx and Harris Corporation, manufacture reconfigurable satellite components. Xilinx offers SIRF FPGAs, which consolidate reconfigurable digital interconnects and interfaces. FPGAs provide a significant space advantage over microprocessors and are in high demand because of their dependability, high performance, and ability to be reprogrammed for single processing tasks. Similarly, Harris Corporation developed a platform for hosted payloads with a reconfigurable multimission software-defined architecture. It is anticipated that new capabilities will be added to the satellite to adapt to changing missions once it is in orbit. The Iridium NEXT satellite constellations have utilized these payloads. The satellites are outfitted with SEAKR's onboard processor, which replaces application-specific integrated circuits with reconfigurable computing (ASICs).

Regional Analysis

North America dominated the global electrical contact cleaner market and is anticipated to register a CAGR of 2.9% during the forecast period. The North American region consists of the U.S. and Canadian regional markets. North America controls the global market for satellite commercial-off-the-shelf components, with the U.S. market likely to generate enormous investments and income. The demand for commercially available satellite components will undoubtedly increase in the future. Companies are already creating products and solutions to satisfy market demands. In addition, the expansion of technology and shrinking of components are predicted to generate new markets that will allow the company to expand its operations and provide innovative, cost-effective solutions. The region secured a substantial 70.63 % market share in value in 2021 and is anticipated to increase by 0.13 % during the projected period. Government and military entities are updating their existing systems to take advantage of market prospects with the help of industry titans such as Cobham Advanced Electronics Solutions, Analog Devices, Inc., and Texas Instruments.

Europe is the second largest region. It is estimated to register a CAGR of 6.6% during the forecast period. The region includes France, Germany, Russia, the United Kingdom, and Rest-of-Europe. Many industrial, research, and development hubs in the United Kingdom, Russia, Germany, France, and Germany produce new solutions to meet market demands. Some significant European companies assist satellite enterprises worldwide with electronic component items. In 2021, Europe was anticipated to account for 20.98% of the satellite commercial off-the-shelf components market. Europe is the second most prominent location for expanding the market for satellite commercial-off-the-shelf components. The European Space Agency (ESA) has cooperated with several semiconductor manufacturing firms and other government organizations to demonstrate the possibilities of developing technology. The regional administration maintains a balance between the civil and commercial space programs to encourage the region's growth of satellite COTS components.

Key Highlights

• The global satellite commercial-off-the-shelf components market was worth USD 1,950 Million in 2022. It is anticipated to reach an expected value of USD 2,170 billion by 2031 at a CAGR of 1.2% during the forecast period (2023-2031).
• By mass class, the global satellite commercial-off-the-shelf components market is bifurcated into small satellites (0-500Kg), medium satellites (501-1,000kg), and large satellites (1,001Kg and above). The large satellites (1,001Kg and above) segment dominated the global electrical contact cleaner market and is estimated to grow at a CAGR of 0.2% during the forecast period. 
• By subsystems/components, the global satellite commercial-off-the-shelf components market is bifurcated into the payload, electrical and power subsystem (Battery, Field-Programmable Gate Array, Application Specific Integrated Circuit (ASIC), Power Convertor), command and data handling system, communication subsystem, thermal control subsystem, attitude determination and control subsystem, propulsion subsystem, mechanism, and actuator. The electrical and power subsystem segment dominated the global electrical contact cleaner market and is estimated to grow at a CAGR of 4.3% during the forecast period. Within the electrical and power subsystem, Application-specific integrated circuit (ASIC) dominated the global electrical contact cleaner market and is estimated to grow at a CAGR of 0.4% during the forecast period. 
• North America dominates the global electrical contact cleaner market and is anticipated to register a CAGR of 2.9% during the forecast period.

Competitive Players

Competitive Analysis

Major global satellite commercial-off-the-shelf components market major companies are Analog Device, Microchip Technology, Micropac, BAE System, Cobham Plc, Curtiss-Wright, Data Device Corporation, Exxelia, GSI Technology, Inc, Honeywell International, Infineon Technologies, and Mercury Systems Inc.

Recent Developments

Market News

• In February 2023, Analog Devices, Inc., a global semiconductor leader that bridges the physical and digital worlds to enable breakthroughs at the Intelligent Edge, and Marvell Technology, Inc. (Nasdaq: MRVL), a leader in data infrastructure semiconductor solutions, announced their next-generation 5G massive MIMO (mMIMO) reference design platform with support for Open RAN.

Segmentation

Global Satellite Commercial-Off-the-Shelf Components Market: Segmentation

By Mass Class

• Small Satellites (0-500Kg)
• Medium Satellites (501-1,000kg)
• Large Satellites (1,001Kg and above)

By Subsystems/Components

• Payload
• Electrical and Power Subsystem 
• Command and Data Handling System
• Communication Subsystem
• Thermal Control Subsystem
• Attitude Determination and Control Subsystem
• Propulsion Subsystem
• Mechanism
• Actuator

By Regions

• North America
• Europe
• Asia-Pacific
• Rest-of-the-World