Satellite Manufacturing and Launch Systems Market Report 2026

The satellite manufacturing and launch systems market size has grown strongly in recent years. It will grow from $29.6 billion in 2025 to $32.26 billion in 2026 at a compound annual growth rate (CAGR) of 9%. The growth in the historic period can be attributed to expansion of global satellite communication and earth-observation programs, increasing deployment of satellites across LEO MEO and GEO orbits, advancements in lightweight satellite materials and subsystem integration, growth in government-funded space missions driving demand for launch systems, development of standardized launch capabilities for highly elliptical and sun-synchronous orbits.

The satellite manufacturing and launch systems market size is expected to see strong growth in the next few years. It will grow to $43.81 billion in 2030 at a compound annual growth rate (CAGR) of 8%. The growth in the forecast period can be attributed to rising demand for small satellite constellations requiring high-frequency launches, increasing commercialization of launch services across diverse orbital classes, advancements in modular satellite manufacturing to reduce cost and production cycles, growth in multi-orbit mission planning enabled by improved transfer-orbit technologies, expanding public-private partnerships to scale global launch infrastructure. Major trends in the forecast period include miniaturization of satellite components, development of high-performance reusable launch vehicles, modular satellite design for rapid deployment, expansion of multi-orbit satellite constellations, enhanced telemetry and remote monitoring systems.

The growing demand for satellites across civil/government, commercial, and military sectors is playing a major role in driving the expansion of the satellite manufacturing and launch market. Military forces worldwide are increasingly utilizing satellite technologies to strengthen their defense capabilities. Various tests and experiments are being conducted by government organizations and defense forces globally to develop space-attack capabilities. Types of space warfare include ground-to-space attacks (targeting satellites from Earth), space-to-space warfare (satellites attacking other satellites), and space-to-Earth warfare (satellites targeting objects on Earth). For example, according to SpaceNews, a US-based non-governmental organization, U.S. manufacturers produced approximately 85% of commercially procured satellites in 2023, with satellite manufacturing revenue growing by 9% to $17.2 billion, driven by flexible software-defined payloads and advanced small satellites. A record-breaking 190 commercially procured launches took place, representing an 18% rise from 2022. These launches deployed 2,781 commercial satellites, a 20% year-over-year increase, largely propelled by SpaceX. As a result, the rising demand for satellites across civil/government, commercial, and military sectors is expected to fuel the growth of the satellite manufacturing and launch market.

Leading companies in the satellite manufacturing and launch systems market are focusing on developing miniature and small satellites to gain a competitive advantage. Miniaturized satellites, such as CubeSats and SmallSats, offer cost-effective solutions for diverse applications, including Earth observation, communication, and scientific research. In May 2023, Rocket Lab, Inc., a US-based aerospace manufacturing company, launched a pair of NASA CubeSats known as the Time-Resolved Observations of Precipitation structure and storm Intensity with a Constellation of Smallsats (TROPICS). These CubeSats were deployed into a 550-kilometer orbit, providing vital data for monitoring tropical storms.

In October 2024, Lockheed Martin Corporation, a U.S.-based defense and aerospace manufacturing company, acquired Terran Orbital Corporation for approximately $450 million. Through this acquisition, Lockheed Martin aims to enhance its position in the rapidly expanding small satellite market by integrating Terran Orbital’s end-to-end satellite solutions, including design, production, launch planning, and mission operations. Terran Orbital Corporation is a U.S.-based manufacturing company specializing in satellite manufacturing and launch systems.

Major companies operating in the satellite manufacturing and launch systems market are Northrop Grumman Corporation, ArianeGroup, Space Exploration Technologies Corp., Blue Origin LLC, Lockheed Martin Corporation, The Boeing Company, Sierra Nevada Corporation, Thales Group, Maxar Technologies Inc., Dynetics Inc., NanoAvionics UAB, Israel Aerospace Industries Ltd., OHB SE, Airbus SE, China Aerospace Science and Technology Corporation, Mitsubishi Heavy Industries Ltd., SpaceQuest Ltd, GomSpace Group AB, Planet Labs Inc., United Launch Alliance LLC, Rocket Lab USA Inc., GeoOptics Inc., Honeywell International Inc., BAE Systems plc, Safran S.A., Parker Hannifin Corporation, Cobham plc., Kratos Defense & Security Solutions Inc.

North America was the largest region in the satellite manufacturing and launch systems market in 2025. The Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the satellite manufacturing and launch systems market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on satellite components, launch vehicle parts, and high-precision aerospace materials have led to increased manufacturing costs and slowed deployment of satellite and launch systems. Regions with major production and launch hubs, such as North America, Europe, and Asia-Pacific, are most affected. However, tariffs have encouraged local sourcing, promoted innovation in cost-efficient satellite manufacturing, and strengthened domestic supply chains, providing long-term benefits for market stability and competitiveness.

The satellite manufacturing and launch systems market research report is one of a series of new reports that provides satellite manufacturing and launch systems market statistics, including satellite manufacturing and launch systems industry global market size, regional shares, competitors with a satellite manufacturing and launch systems market share, detailed satellite manufacturing and launch systems market segments, market trends and opportunities, and any further data you may need to thrive in the satellite manufacturing and launch systems industry. This satellite manufacturing and launch systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Satellite manufacturing and launch systems encompass the technologies used for remote transmission, detection, inspection, communication, traffic control, and telemetry. Satellites, artificially designed machines, are placed in Earth's orbit to perform various applications, including navigation, weather monitoring, and space telescopes. Launch vehicles are utilized to place satellites into Earth's orbit.

The main technology types in the satellite manufacturing and launch systems market include satellite manufacturing and satellite launch systems. The satellite manufacturer, typically the prime contractor and manufacturer of the satellite, is a party to the satellite purchase agreement. Satellite manufacturing and launch systems involve different satellite types, such as lower earth orbit (LEO) satellites, medium earth orbit (MEO) satellites, geosynchronous equatorial orbit (GEO) satellites, and beyond GEO satellites. These satellites find applications in various sectors, including commercial communications, government communications, earth observation services, research and development, navigation, military surveillance, scientific applications, and other applications. End-users of satellite manufacturing and launch systems include military and government, commercial entities, and other users.

The countries covered in the satellite manufacturing and launch systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The satellite manufacturing and launch system market consists of sales of satellite and launch systems such as highly elliptical orbit, near-polar sun-synchronous orbit, polar orbit, and geostationary transfer orbit. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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