In 2023, the satellite bus market value reached $14.7 Billion, exceeding previous growth estimates. If in 2020, the projected CAGR stood at less than 6%, in 2024, this figure already exceeds 7%. Considering the growing demand for reliable satellite buses as on https://dragonflyaerospace.com/satellite-buses/, this growth may keep increasing before this decade is over and, possibly, after. Below, we will discuss satellite bus trends and applications, starting with the most basic facts — what does a bus do, and why does the entire space industry rely on the bus segment as its key driver?
What is a satellite bus used for?
A satellite bus is one of the basic components of a satellite — or any other spacecraft, for that matter, which is why these two terms are used interchangeably. The bus has all the indispensable spacecraft components necessary for it to operate. These include power generation and distribution systems, onboard computers, propulsion mechanisms, and, of course, communication systems to ‘stay in touch’ with the ground.
That is a bus hosts all the equipment and parts a spacecraft needs to work. It also carries a payload — a set of equipment, such as optical cameras or infrared sensors, necessary to complete space mission goals. In its simplest form, a satellite bus is the exact essence of any satellite, a chief element that makes the entire spacecraft work.
Satellite buses applications
Applications of satellite buses are determined by spacecraft mission goals. Today, most common uses include:
- Earth observation for a variety of purposes, from monitoring climate change and forecasting weather to preventing illegal mining and fishing;
- Communication, including mobile and internet networks, as well as TV broadcasts;
- Navigation, of which GPS is only one notable example;
- Military and defense tech, gathering intelligence in real-time;
- Science and research, including exploration of deep space.
Besides, there are multiple sub-applications in each category, especially in earth observation. EOS tech can monitor pollution levels, track wildlife, provide yield forecasts, etc. But how much does a satellite bus cost? Here, the answer depends on the intended spacecraft application, of which there are plenty.
For starters, the satellite bus market is subdivided into small, medium, and large segments — pretty much like satellites they’re built for. A small satellite bus may cost anywhere between $500,000 to $5 million, whereas a large one is usually over $100 million. Anything that falls between $10 million to $50 million is classified as a medium bus — a segment that currently commands almost half of the entire satellite bus market and keeps growing. On this note, what other satellite bus trends shape the market in 2024?
Notable tendencies in the satellite bus market
The growing demand for communication services, as well as increased end-user expectations, have been stimulating market growth for several years now. Even though medium-size space tech commands over 40% of the entire industry, small spacecraft numbers are also increasing. The adoption of satellite constellations for transmission, navigation, agribusiness, as well as other services, improves tech reliability and keeps boosting further market growth.
Another notable trend that has been developing for many years is increased collaboration between the public and private space sectors. Since the number of private launches has increased, partnerships between space agencies and private operators keep strengthening. In the US, the Department of Defence is regularly allocating research and testing funds to private companies, driving the entire market further.
Notably, military applications of space tech are expected to grow, considering global political tensions and uncertainties of the past few years. This trend will primarily concern the small satellite bus market; however, certain growth is also anticipated in the medium bus segment.
A similar situation is seen in the space research and exploration niche, where small satellites and CubeSats are shaping the future of our research. Space technology is becoming ever more affordable, which allows research institutions without massive government funding to launch and carry out their missions. Thanks to this developing innovation policy, the industry enjoys its fair share of advances, including in green fuel and propulsion technologies.
What is the satellite market forecast?
Progress in satellite bus technologies is produced by a general satellite market growth. The demand for space services in all segments, from Earth observation to military and defense, keeps growing. Science is on the rise, too — driven primarily by advances in CubeSat technology. Besides, end-user demand for communication satellites, including constellations for high-speed internet access, should keep growing. Last year the global satellite market size was valued at over $38 billion, and with a projected annual growth of over 7%, this figure could well exceed $70 billion before this decade is over.
Wrapping it all up, prediction markets look very promising for rocket science in general and the bus segment in particular. Since one cannot function without another, we should soon see new advancements in bus technology, and as a result, the science and technology of space flight we rely on today will be growing more versatile and affordable each year.
