The global commercial satellite launch services industry has been on a roll in recent times with the efforts put in by major governments worldwide – say for example, the Indian government’s effort towards GST exemption on Satellite launch services to empower the domestic launch. As per news reports, the government notified recently that the Satellite launch services supplied by ISRO, New Space India Limited, or Antrix Corporation were to be the exempted service under GST.
In fact, the GST Council has decided that 18 per cent of GST would be completely scrapped off. This initiative would help protect the domestic satellite industry making use of homegrown launch capabilities sans the upfront GST burden and offering it a level-playing field.
This mention provides a vital testament to the expanding ground of commercial satellite launch services market, which would in the upcoming years account for a major share of the overall satellites industry; driven by the prominence of below mentioned trends:
Penetration across diverse regions
Citing an instance of how commercial satellite launch services industry was performing across the Indian economy, it is quite necessary to take note of the industry expansion across various developed and developing economies and regions including North America, Asia Pacific, Middle East and Africa, and LATAM. Speaking of which, the Latin America region is poised to foresee lucrative growth across the overall industry in the lieu of rising need for these services to establish security network to fight against civil crime and other related issues.
On the other hand, Middle East and Africa region would also accrue tremendous gains over the span of 2020 to 2026, primarily due to the demand for tracing natural reservoirs and basins through satellite imagery.
Further, companies across these regions are also looking towards developing and bringing novel innovations in the business field, while being engaged in mergers, acquisitions, and collaborations.
Increasing mergers and collaboration activities
Given the intense M&A activities worldwide, the global commercial satellite launch service market would expand profusely over the stipulated time frame. In fact, proliferation of smartphones and subsequently rising demand for better internet connectivity and telecommunication services has further propelled the market trends.
For instance, one of the prominent private aerospace companies- SpaceX, had recently announced establishing itself as an operator of the world’s largest assemblage of commercial satellites, post the launch of its 60 Starlink broadband satellites using the company’s own Falcon 9 rocket.
In line with such initiatives, various aerospace companies have also begun offering rideshare services which allows other companies to book a ride on the upcoming launch to place their satellites into the orbit at a relatively reduced time span compared to a standalone launch.
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Rising popularity of highly elliptical orbit
The global commercial satellite launch service market is fragmented into vivid domains including orbit type and applications. with respect to the orbit segmentation, highly elliptical orbit market is set to garner notable gains in the near future attributing to the expanding scope of product application in communication satellites.
Expansive application board
Based on the application spectrum, the global market is sub-divided into navigation, reconnaissance, communication, remote sensing and weather forecasting segments, of which, the navigational as well as the communication satellite sectors are expected to observe prolific product adoption in the ensuing years.
The navigation segment is estimated to witness substantial growth over the foreseeable time frame, perhaps due to the mounting dependency of navigation across the civil sector. While on the contrary, communication satellite segment is also touted to emerge as a profitable growth avenue for the overall market owing to transforming work trends and escalating demand for internet infrastructure.
The aforementioned trends are likely to carve a lucrative growth chart for the overall commercial launch satellite service market in the years ahead, massively driven by the ongoing developmental activities across the satellite industry.
