Global Space-based Laser Communication Market Grows at a Staggering CAGR of 25.9%

Introduction

Space-based laser communication is ideally suited for data transfer in remote places unsuitable to traditional methods. The technology offers inter-satellite communications, satellite-to-ground communications, and other uses. In satellite communication applications, the expanding number of satellites is one of the most important elements driving the development of space-based laser communication.

Market Dynamics

Rising Number of Satellite Launches for Communication and Earth Observation Drives the Global Market

Several nations have launched satellite constellations for applications, including real-time earth observation, navigation, technological advancement, and worldwide internet access. There is a substantial market need for satellite constellations due to the growing desire for faster, more dependable, and more effective real-time tracking and monitoring systems for goods, ships, etc., and earth observation (EO). According to the Union of Concerned Scientists (UCS), in the year 2020, more than 1,100 satellites were launched. These small satellites were launched for commercial, military, and government purposes. A cluster of small satellites could eventually replace large satellites in a single orbital region. Once the technology is available, small satellite constellation systems can outperform traditional satellite systems, launch for less money, and operate similarly.

Connectivity Requirements in Rural Areas and Developing Countries Create Tremendous Opportunities

The development of satellite connectivity solutions in wealthy nations and metropolitan areas of emerging countries has created a red ocean market, and industry participants are seeking new revenue-generating strategies. Developing connection solutions for rural areas in developing nations represents one of the largest market prospects. Rural regions in developing and impoverished nations are pristine and can offer unique commercial prospects. Leading satellite communication firms are constantly pursuing business prospects in places such as Africa. A proactive government strategy for integrating new technologies and providing infrastructure support enables businesses to run efficiently. For instance, in June 2020, the South African government announced intentions to invest in satellite communication and internet expansion projects. The country's government has proposed a "Space Infrastructure Center" to facilitate the creation of satellite infrastructure, satellite-based augmentation systems, and earth observation satellites.

Regional Analysis

North America is the most significant global space-based laser communication market shareholder and is estimated to exhibit a CAGR of 27.9% over the forecast period. The expanding satellite mega-constellations by various new government and commercial manufacturers, including SpaceX, Telesat, and Space Development Agency (SDA), for laser-based communication between satellite-to-satellite and satellite-to-ground stations, will increase the demand for space-based laser communication terminals. In addition, expanding deep-space mission programs due to an increase in the commercialization of space in the region, particularly in the United States and Canada, would increase the demand for space-based laser communication components.

Europe is anticipated to grow at a CAGR of 39% over the forecast period. As one of the primary players in the ESA, the country's space sector has experienced tremendous growth in recent years and is likely to increase progressively in the following years. The country has launched several satellites over the past two decades and plans to increase the number of satellites to extend its space operations. Therefore, companies building space-based laser communication terminals are interested in funding and investing in the region. The region has witnessed a boom in space-related organizations in the United Kingdom due to their enhanced efforts to ensure the continual technological improvement of nano and microsatellites by applying new technologies.

Key Highlights

• The global space-based laser communication market was worth USD 1130.26 million in 2022. It is estimated to reach an expected value of USD 4,100.63 million by 2031, growing at a CAGR of 25.9% during the forecast period (2023 – 2031).
• By end-user, the global space-based laser communication market is segmented into commercial and government, and military segments. The commercial segment dominates the global market and is expected to exhibit a CAGR of 27.4% during the forecast period.
• Based on the solution, the global space-based laser communication market is segmented into space-to-space and space-to-ground stations. The space-to-space segment is the highest contributor to the market and is expected to exhibit a CAGR of 27.8% during the forecast period.
• By component, the global space-based laser communication market is segmented into optical heads, laser receivers and transmitters, modems, modulators, demodulators, amplifiers, pointing mechanisms, and frequency converters. The pointing mechanism segment owns the highest market share and is expected to exhibit a CAGR of 27.3% during the forecast period.
• By range, the global space-based laser communication market is segmented into short-range (below 5,000 km), medium-range (5,000-35,000 km), and long-range (above 35,000 km). The short-range (below 5,000 km) segment is the highest contributor to the market and is expected to grow a CAGR of 28.7% during the forecast period.
• North America is the most significant global space-based laser communication market shareholder and is estimated to exhibit a CAGR of 27.9% over the forecast period.

Competitive Players

1. AAC Clyde Space (Hyperion Technologies)
2. Analytical Space Operation
3. Ball Aerospace
4. BridgeComm
5. General Atomics
6. HENSOLDT
7. Honeywell International
8. Laser Light Communication (Halo Network)
9. Mynaric
10. ODYSSEUS SPACE SA
11. Rocket Lab USA, Inc
12. Space Exploration Technologies Corp. (SpaceX)
13. Space Micro
14. Tesat Spacecom
15. Thales Group

Recent Developments

• March 2023 - With the creation of the TESAT Government, TESAT, the world leader in optical communication technologies, is establishing its presence in the United States to support U.S. Government projects (TESAT Gov).
• September 2022 - As part of the Space Development Agency's (SDA) Tranche 1 Transport Layer, Tesat-Spacecom recently finished the Preliminary Design Review (PDR) of its optical communication terminals (OCTs) for satellites (T1TL). For the evaluation, the SDA and Lockheed Martin, a prime contractor for the agency's tranche 0 (TLT0) and TLT1 satellites, were present at TESAT.

Segmentation

1. By End-User
   1. Commercial
   2. Government 
   3. Military 
2. By Solution
   1. Space-To-Space
   2. Space-To-Ground Station.
   3. Space-To-Other Application
3. By Component
   1. Optical Head
   2. Laser Receivers and Transmitters
   3. Modems
   4. Modulators
   5. Demodulators
   6. Amplifiers
   7. Pointing Mechanism
   8. Frequency Convertors
4. By Range
   1. Short Range (Below 5,000 Km)
   2. Medium Range (5,000-35,000 Km)
   3. Long Range (Above 35,000 Km)