Asia-Pacific Satellite Launch Vehicle Market Outlook to 2030

Asia-Pacific Satellite Launch Vehicle Market Overview

• The Asia-Pacific Satellite Launch Vehicle (SLV) Market was valued at USD 1.65 billion in 2023. This growth is primarily attributed to the rising need for high-resolution imaging, communication, and navigation services that require a robust satellite infrastructure. The increasing demand for satellite-based services, advancements in technology, and the growing number of satellites launches by both government and private entities.
• The key players in the market are China Great Wall Industry Corporation (CGWIC), Indian Space Research Organisation (ISRO), Mitsubishi Heavy Industries (MHI), Japan Aerospace Exploration Agency (JAXA), and SpaceX. These companies are at the forefront of technological advancements and have been instrumental in shaping the market dynamics.
• In 2023, the satellite launch vehicle industry witnessed significant advancements, highlighted by ISRO's successful deployment of 36 OneWeb satellites in March. This mission exemplified India's growing capabilities, contributing to a total of approximately 171 satellites launched globally by ISRO from 2017 to 2022, enhancing its competitive edge in the international market.
• China has emerged as the dominant player in the market, with its robust space program, which includes the development of a wide range of launch vehicles capable of carrying various payloads into space. China's ambitious plans to establish a permanent space station and explore the Moon and Mars have further solidified its position as a leader in the regions space industry.

Asia-Pacific Satellite Launch Vehicle Market Segmentation

The market is segmented into various factors like launch vehicle type, payload type, and region.

By Launch Vehicle Type: The market is segmented by launch vehicle type into expendable launch vehicles (ELVs) and reusable launch vehicles (RLVs). In 2023, expendable launch vehicles held a dominant market share, primarily due to their established use in a wide range of satellite missions. However, the market is gradually shifting towards reusable launch vehicles, driven by the need to reduce costs and enhance the sustainability of space missions. The growing interest in RLVs is expected to increase their market share in the coming years.

By Payload Type: The market is segmented by payload type into small satellites, medium satellites, and large satellites. In 2023, small satellites held the largest market share due to the growing demand for miniaturized satellites for Earth observation, communication, and scientific research. The increasing deployment of small satellite constellations by private companies has further fueled the growth of this segment.

By Region: The market is segmented by region into China, South Korea, Japan, India, Australia, and Rest of APAC. China held the largest market share in 2023, followed by India and Japan. These countries have well-established space programs and are actively involved in satellite launches for various applications, including communication, navigation, and Earth observation.

Asia-Pacific Satellite Launch Vehicle Market Competitive Landscape

• SpaceX: In 2023, SpaceX's Starlink reached a significant milestone, surpassing 2 million subscribers by September. The constellation now comprises over 6,000 satellites, with plans for nearly 12,000. Revenue from Starlink is reached to USD 6.6 billion in 2024, reflecting its expanding global internet coverage.
• ISRO: ISRO's SSLV-D2 successfully launched on February 10, 2023, placing three satellites into a 450 km orbit. The mission demonstrated enhanced vehicle performance, carrying a total payload of 175.2 kg. The SSLV is designed to reduce launch costs by 30%, catering to the growing small satellite market.

Asia-Pacific Satellite Launch Vehicle Market Analysis

Market Growth Drivers

• Increased Satellite Launch Demand: The Asia-Pacific region has shown substantial rise in the demand for satellite launches due to the surge in communication, navigation, and Earth observation needs. By the end of 2024, it is expected that the number of satellites launched will exceed 500, with major contributions from commercial entities. China alone plans to launch over 200 satellites in 2024, driven by the expansion of the BeiDou Navigation Satellite System.
• Government Investments in Space Programs: Governments across the Asia-Pacific region have been significantly boosting their investments in space exploration and satellite launch capabilities. The Indian government allocated 13,043 crore to ISRO in the 2024-25 budget, a 4% increase from the previous year. This budget focuses on projects like Gaganyaan human spaceflight program, Chandrayaan lunar missions, and the development of new launch vehicles and satellite technologies. These investments are expected to strengthen the regions position in the global space industry.
• Expansion of Commercial Space Ventures: The Asia-Pacific region has seen a notable increase in commercial space ventures, with private companies playing a larger role in satellite launches. In 2024, private company OneSpace in China secured contracts to launch satellites for various international clients. The entry of private players is driven by the lower costs and increased efficiency of satellite launch services, which are expected to cater to the growing demand for low Earth orbit (LEO) satellite constellations.

Market Challenges

• High Costs of Launch Vehicle Development: The development and deployment of satellite launch vehicles remain highly capital-intensive, posing a significant challenge for the Asia-Pacific market. In 2024, the average cost of developing a new medium-sized launch vehicle in the is high. This high cost is a barrier for smaller nations and emerging space companies, limiting their participation in the market. The financial burden is exacerbated by the need for continuous innovation to keep up with global competitors.
• Limited Infrastructure and Launch Sites: The availability of satellite launch infrastructure is limited in the Asia-Pacific region, posing a logistical challenge for the market. As of 2024, only a handful of countries in the region, such as China, India, and Japan, have fully developed launch sites capable of handling frequent launches. This limitation constrains the number of launches that can be conducted, particularly for countries with nascent space programs.

Government Initiatives

• Japans Space Policy for 2024: Japan has launched a JPY 1 trillion Space Strategic Fund to enhance its space industry over the next decade. This initiative aims to foster technological innovation in areas like satellites and space transportation, with applications for funding now open to private companies and universities. To increase the country's participation in global space exploration efforts.
• Indias Gaganyaan Mission: The Indian government has allocated approximately 90.23 billion for the Gaganyaan mission, aimed at sending a three-member crew into low Earth orbit at 400 km for three days. The mission is expected to launch in late 2024, marking India's entry into human spaceflight capabilities. This initiative is India's first human spaceflight program, aiming to send Indian astronauts to space by 2025.

Asia-Pacific Satellite Launch Vehicle Market Future Outlook

The future trends in the Asia-Pacific SLV Industry include reusable launch vehicles are expected to become increasingly prevalent in the market, offering cost-effective and frequent launch solutions by 2028.

Future Market Trends

• Rise in Demand for Low Earth Orbit (LEO) Satellite Constellations: Over the next five years, the demand for LEO satellite constellations is expected to significantly increase in the Asia-Pacific region. By 2028, it is estimated that the region will see over 1,000 new LEO satellites launched annually, driven by the growing need for global internet coverage and enhanced communication networks. This trend will lead to a surge in satellite launch activities, with China and India leading the efforts to develop and deploy these constellations.
• Development of Reusable Launch Vehicles: Reusable launch vehicles (RLVs) are expected to become a dominant trend in the Asia-Pacific SLV market by 2028. Countries like India and Japan are actively investing in the development of RLVs, with ISRO planning to conduct operational flights of its RLV-TD by 2027. The adoption of RLVs is anticipated to lower launch costs and increase the frequency of satellite launches, making space more accessible to a broader range of users.