Space Power Supply Market

Market Overview

The global space power supply market size was valued at USD 2.7 billion in 2021. It is projected to reach USD 3.14 billion by 2030, growing at a CAGR of 1.70% during the forecast period (2022–2030).

The energy supply system encompasses all aspects, including generation, storage, conditioning, distribution, and conversion for space applications. Space missions can last from a few minutes to decades; consequently, it is essential to identify the best primary and secondary sources and design a system to maximize their utility. The space industry, including space power supply, is highly regulated, with all components requiring a stringent quality inspection and legal documentation before using a spacecraft. In addition, technological advancements, satellite launches, regulations (EWR 127-1, MIL-STD), etc., substantially impact the industry's demand for power supply products.

Due to the increasing capabilities and reliance on satellites for civil and military applications, the demand for a dependable, secure, and potent electrical supply has increased dramatically over the past few decades. Currently, the industry is concentrating on creating power supply products that are lightweight, energy-efficient, and durable over an extended period. The research is based on extensive primary interviews (in-house industry players, market leaders, and industry experts), secondary research (various paid and unpaid databases), and predictive analytical tools for the study period. The space power supply study provides a more comprehensive view of the industry.

Market Dynamics

Market Drivers

• Increasing Development of LEO Satellites and Reusable Launch Vehicles

A launch system is considered reusable if it can reuse some or all of the component stages of the launch vehicle. Up to this point, several fully reusable suborbital and partially reusable orbital systems have been put through their paces in flight. The low earth orbit (LEO) system's primary benefit is that the satellites can communicate with one another with minimal time lag because of their proximity to the earth. Therefore, these constellations are ideal for use with services compassionate to delay, such as voice communication. These additional advantages and benefits drive the global space power supply market.

• Demand for Enhanced Space Power Requirements

Low Earth orbit (LEO) satellites are increasingly being used to complement the 5G terrestrial network because they provide higher bandwidth and lower latency. These technological developments have increased the pressure on satellite power supply systems to function admirably under challenging circumstances for the anticipated mission duration. The increasing number of satellite launches and the advancement of reusable launch technologies are fuelling the growth of the space power supply industry.

• Demand for high-performance and lightweight components

The market for space power supplies is expanding due to the growing demand for high-performance, lightweight components that rely largely on satellites. Unfortunately, high testing and raw material prices and high startup expenditures limit the market growth for space power supplies. Moreover, the use of sophisticated control systems Enormous growth brought on by mega-constellations of satellites is also projected to open up new business prospects for the space power supply industry throughout the forecast.

Market Restraint

• Large Size is Hampering the Market Growth

The most advanced power systems currently available on the market are either too large, too complex, or too inefficient to meet the demands of upcoming space exploration projects. Some of them are even incapable of functioning in hostile environments. As a result of rapidly advancing technologies and an increasing demand for novel materials to decrease overall system mass, the supply chain is currently experiencing strain due to these factors. The tension is caused by a combination of these factors restraining the growth of the global space power supply market.

• High cost

One of the problems preventing the global market for space power electronics from expanding is the high cost of designing and developing space power systems and the rugged design and integration process. Yet, the space industry's growing R&D activities are projected to grow considerably throughout the forecast year. A satellite cannot operate for an extended period without space-power electronics that can withstand extreme space conditions. With two objectives in mind—preserving the independence of their nation's space programs and enhancing the competitiveness of future satellites—space businesses have been researching and developing space-qualified components for satellite development. Also, developments in space power device downsizing and power semiconductor switch technologies are some of the factors that will produce specific growth prospects for the market in the next years.

Market Opportunities

• Due to Satellite Mega Constellations

The trend toward smaller satellites has reduced the costs of building, launching, and operating satellites and enabled faster and more flexible deployment and satellite mega-constellations. The space industry has undergone a dramatic transformation in recent years. Instead of launching few, complex, expensive, and large spacecraft, the current trend is to deploy smaller, less complex, and less expensive satellites. The interest in small satellites (typically weighing less than 500 kilograms) has increased due to the miniaturization of formerly voluminous satellite components, standardization, and significantly reduced costs resulting from design and manufacturing advancements.

More prominent constellations and swarms of small satellites are employed to enhance surveillance capabilities, increase orbits, and fill the gaps between the high-precision data provided by large satellites. Missions are emerging in which small satellites are fractionated so that each satellite performs a specific function, such as imaging, processing, or transmission.

Segmental Analysis

The global space power supply market is segmented by product and application.

By Product

Based on product, the market is segmented into launch vehicles, satellites, and deep space exploration. The satellite segment is expected to dominate the global space power supply market. The launch of small satellite mega-constellations by companies like SpaceX and OneWeb is the primary contributor to this expansion.

By Application

Based on applications, the market is segmented into solar panels, power management devices, batteries, and power converters. The solar panel segment of the global space power supply market is anticipated to have the largest market share. The increasing demand for solar arrays to power multiple satellite missions is one of the primary factors contributing significantly to this expansion.

Regional Analysis

The global space power supply market is divided into three regions, namely North America, Europe, and Asia-Pacific.

North America is dominating the regional market with the highest revenue. This can be attributed to the high presence of key regional companies that are highly engaged in developing and providing space power supply solutions. North America will continue to hold a significantly dominant position in the market in the future. The United States of America held tremendous dominance, capturing more than two-thirds of the total market share. With growing investments in start-ups and aggressive launch activities by SpaceX, this region is likely to offer the highest growth opportunities during the period that is being forecasted as well.

Asia-Pacific will hold steady as the market's second-largest regional segment. The space budget for this region is almost equal to one-half of that for all of North America. Other vital countries include China and India, each holding a sizeable portion of the international market.

Recent Developments

• In January 2023, The European Defence Fund chose a partnership to build a sub-100 kilogram satellite for space situational awareness that will be placed in geostationary orbit (GEO), which includes A.A.C. Clyde Space's subsidiary A.A.C. Hyperion. The Naucrates satellite is not supposed to be visible to ground radar, optical telescopes, or radio telescopes. The Space Situational Awareness (S.S.A.) satellite is expected to be the first European GEO satellite.
• In February 2023, The Science Based Targets initiative (SBTi) gave Airbus certification for its short-term reduction goals for greenhouse gas emissions.
• In February 2023, With a rigorous wind tunnel testing program, Northrop Grumman validates the Sentinel Missile design.
• In December 2022, the Second RAPCON-XTM Aerial I.S.R. Jet from S.N.C. Advances the Company.

Space Power Supply Market Segmentation

By Product

• Launch Vehicles
• Satellites
• Deep Space Exploration

By Application

• Solar panels
• Power Management Devices
• Batteries
• Power Converters

By Regions

• North America
• Europe
• Asia-Pacific