Electric Propulsion Satellites Market - By Orbit, By Satellite, By Type, By Satellite Mass, By Propulsion, By Application, By End-use & Forecast, 2024 - 2032

Electric Propulsion Satellites Market Size

The global electric propulsion satellites market was valued at USD 42.9 billion in 2023 and is estimated to grow at a CAGR of 12.1% from 2024 to 2032. The market is driven by improved propulsion efficiency, demand for lighter satellites, and cost-effective space operations. Electric propulsion systems cut fuel load by up to 90% compared to chemical propulsion, reducing launch mass and cost. This leads to longer missions and increased payload capacity, benefiting operators of satellite constellations.
 

 For instance, In April 2024, NASA unveiled a new propulsion system for small spacecraft. This technology aims to enhance exploration capabilities and extend satellite lifespans. The system supports future planetary missions using compact spacecraft, opening new avenues for space research. This advancement reinforces the U.S. position in space technology. NASA's propulsion advances boost the electric propulsion satellite market. This technology allows small spacecraft to conduct longer missions and explore new planets, proving electric propulsion's value for precise, extended operations in harsh environments.
 

The satellite propulsion market is growing rapidly as operators switch from chemical to electric systems. This shift is driven by the need for precise orbital control and fuel efficiency in geostationary and LEO satellite constellations. Electric propulsion offers significant fuel savings and longer operational lifetimes, benefiting both commercial and scientific missions.
 

Electric Propulsion Satellites Market Trends

Satellites are in high demand for defense and commercial uses, including command and control, and government operations. This demand drives market growth, with armed forces worldwide using satellites for various purposes. Electric propulsion satellites are gaining popularity across sectors due to their performance and efficiency. Small all-electric satellites are increasingly used because of their low cost and readily available components. The U.S. Government Accountability Office (GAO) projects that 58,000 new satellites will be launched by 2030, more than doubling the current number of operational spacecrafts. This significant increase in launches is primarily driven by the deployment of large satellite constellations designed to provide essential services, such as broadband internet access to underserved rural areas.
 

Electric Propulsion Satellites Market Analysis

The electric propulsion satellites industry faces challenges like high development costs, technical limitations, and entry barriers for smaller companies. However, it also offers growth opportunities driven by increasing demand for satellite services, global broadband, and Earth observation. Supportive regulations and the push for sustainability in aerospace further boost the market's potential. Despite the hurdles, the lower environmental impact of electric propulsion systems compared to traditional ones positions the market favorably for future growth.
 

Based on satellite type, the market is divided into full electric, and hybrid. The hybrid segment is expected to register a CAGR of over 13% during the forecast period.
 

• Hybrid propulsion systems blend chemical and electric propulsion, offering improved performance and flexibility. These systems allow satellites to use chemical engines for high-thrust orbit insertion, while relying on efficient electric propulsion for long-term maneuvers and station-keeping. This dual approach enhances overall satellite capabilities and operational efficiency.
   
• Rising demand for satellite services, particularly in broadband and Earth observation, is driving investment in hybrid propulsion. This technology offers a cost-effective alternative to full electric systems, reducing satellite weight for more efficient launches and increased payload capacity.
   

Based on end-use, the electric propulsion satellites market is divided into Government and commercial. The commercial segment dominated the global market with a revenue of over 41 billion in 2023.
 

• Satellite internet services are driving demand in the commercial electric propulsion satellite market. As companies expand their networks, they need efficient propulsion systems for their growing satellite constellations. Electric propulsion offers better fuel efficiency and longer lifespans, crucial for maintaining large satellite networks.
   
• A key trend in the commercial segment is increased investment in Earth observation satellites and data services. Companies increasingly use satellite data for agriculture, climate monitoring, and disaster management. Electric propulsion systems provide an efficient way to maintain satellite orbits, ensuring consistent data collection. This technology extends operational lifespans and improves positioning accuracy, enhancing data service quality and continuity.
   

North America dominated the global electric propulsion satellites market in 2023, accounting for a share of over 39.5%. The U.S. market is growing rapidly, fueled by tech advances, rising demand for satellite services, and increased investment from government and business sectors. Companies like SpaceX and Boeing are leading the charge, integrating efficient and cost-effective electric propulsion systems. These firms are launching large satellite groups for services such as broadband internet and Earth observation. In August 2024, Safran Electronics & Defense revealed plans to expand its U.S. manufacturing of small satellite propulsion systems. Announced at the Small Satellite Conference in Logan, Utah, this move aims to meet rising demand in commercial and defense sectors. The expansion aligns with the North American small satellite market's projected growth to over USD 5 billion by 2030.
 

Europe's market is seeing key trends in sustainability, tech innovation, and industry teamwork. The European Space Agency leads the way, using electric propulsion for satellites to boost fuel efficiency and cut environmental impact. In February 2023, Madrid-based IENAI SPACE received two European Space Agency contracts worth USD 1.3 million. These contracts, part of the General Support Technology Program, will advance the company's ATHENA propulsion systems. A prototype of this system was successfully tested on Firefly's first orbital flight in October 2022.
 

Asia Pacific electric propulsion satellites market is booming. Driven by demand for advanced satellite services and government space initiatives, countries like China, South Korea, and India are investing heavily in this technology. These nations are forming partnerships and focusing on electric propulsion systems to improve efficiency and cut costs. China stands out for its significant progress in developing electric propulsion technologies to support its ambitious satellite launch plans. For instance, in July 2024, CASC's APStar-6E satellite began its operational service, showcasing the Asia-Pacific region's progress in satellite technology. The satellite's electric propulsion system enhances telecommunications and data transmission capabilities. This successful deployment marks a significant step in China's space program and underscores the growing importance of satellite services in the region.
 

In April 2023, Exotrail landed a contract with Satrec Initiative to integrate its spaceware electric propulsion system into a Korean government mission to provide an engineering model of the spaceware – micro XL system alongwith a flight model for a proof-of-concept mission. This project aims to test Satrec Initiative's Earth observation platform in Low Earth Orbit (LEO).
 

Electric Propulsion Satellites Market Share

Major players like Boeing, Lockheed Martin, Northrop Grumman, OHB System, L3Harris Technologies, and Airbus dominate the electric propulsion satellites industry. As demand for efficient satellites grows, firms are investing in R&D to enhance propulsion tech and extend satellite life. To stay ahead, companies must invest in advanced propulsion technologies that boost efficiency and meet growing demands for satellite operations in communications, Earth observation, and navigation.
 

Electric Propulsion Satellites Market Companies

Major players operating in the electric propulsion satellites industry are:

• Accion Systems
• Ad Astra Rocket
• Aerojet Rocketdyne
• Airbus
• ArianeGroup
• Bellatrix Aerospace
• Boeing
• Busek
• L3Harris Technologies
• Lockheed Martin
• Northrop Grumman
• OHB System
• Safran Group
• Sitael
• Thales Alenia Space
• ThrustMe
   

Electric Propulsion Satellites Industry News

• In February 2023, Starfish Space, a satellite servicing firm founded by ex-Blue Origin and NASA engineers, unveiled plans to launch its Otter Pup satellite in summer 2023. The satellite aims to dock with another in fall 2023, marking two firsts: satellite docking using high-performance, low-thrust electric propulsion and commercial satellite docking in Low Earth Orbit (LEO).
   
• In February 2023, Thales Alenia Space, a joint venture of Thales (67%) and Leonardo (33%), signed a contract with the Korea Aerospace Research Institute (KARI) to supply electric propulsion systems for the GEO-KOMPSAT-3 satellite. This deal highlights the growing focus on advanced electric propulsion in satellite design, aimed at boosting efficiency and performance in geostationary orbit.
   

This Electric Propulsion Satellites market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD million) from 2021 to 2032, for the following segments:

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Market, By Orbit

• Low Earth Orbit (LEO)
• Medium Earth Orbit (MEO)
• Geostationary Orbit (GEO)

Market, By Satellite Type

• Full Electric
• Hybrid

Market, Satellite Mass

• Less than 100 kg
• 100 -500 KG
• 500 -1000 Kg
• Above 1000 Kg

Market, Propulsion

• Electrothermal
• Electrostatic
• Electromagnetic
• Others

Market, Application

• Earth Observation
• Navigation
• Communication
• Weather Monitoring
• Others

Market, End-use

• Government
  • Military
  • Others
• Commercial

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa