Software-Defined Satellite Market Size, Share, Opportunities, And Trends By Component (Hardware, Software, Services), By Subsystem (Payloads, Power System, Propulsion System, Onboard Processing, Others), By Orbit Type (LEO, MEO, GEO), By Application (Communication, Navigation, Earth Observation, Remote Sensing, Others), By End-User (Academic, Commercial, Government & Defense), And By Geography – Forecasts From 2025 To 2030

Software Defined Satellite Market Size:

The Software Defined Satellite Market is projected to grow at a CAGR of 11.40% through 2025-2030.

Software Defined Satellite Market Trends:

The software-defined satellite is a way forward to provide support for mission-critical needs across various industries. The software-defined satellite can provide communications connectivity, especially in areas where radio frequency poses challenges. The communications can be streamlined as a new standard has been set up for the complex and often challenging operating conditions.

Further, the 5G software-defined network is designed to enable greater flexibility across satellite and core. The major application can be the usage in disaster management for relief and recovery. In January 2025, Gilat Satellite Networks Ltd. and Hispasat swiftly responded to Southern Linc’s urgent request for additional satellite capacity in the wake of Hurricane Helene. Together, they ensured uninterrupted communication for critical services. The additional bandwidth enabled workers to operate effectively during the recovery efforts.

Software Defined Satellite Market Overview & Scope:

The Software Defined Satellite Market is segmented by:

• Component: Hardware, software, and services are segments of the component in the software-defined satellite market. The services included consulting, software updates, maintenance, etc.
• Subsystem: By subsystem, the software-defined satellite market is segmented into payloads, power systems, propulsion systems, onboard processing, and others. These are different parts and systems that can be used in the flexible satellites.
• Orbit Type: Low Earth orbit, medium Earth orbit, and geostationary Earth orbit are segments for orbit type in the software-defined satellite market. The launches for low Earth orbit are growing in number due to their cheaper costs and smaller utilization.
• Application: By application, the software-defined satellite market is segmented into communication, navigation, earth observation, remote sensing, and others. Communication is a major sector of application, especially with the expansion of 5G infrastructure. The navigation segment application is expanding due to the growing global trade.
• End-User Industry: By end-user, the software-defined satellite market is segmented into academic, commercial, and government & defense. The commercial application is expanding for the communication infrastructure. The academic and research is used for its cost efficiency. The government & defense are using it for disaster management and high cybersecurity.
• Region: By geography, the software-defined satellite market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific.

Top Trends Shaping the Software-Defined Satellite Market:

1. AI and ML integration

• AI/ML applications are becoming increasingly important for the software-defined satellite. The AI/ML applications are necessary for the development of sophisticated software architectures. These technologies help the development of automated systems to monitor the satellite’s environment.

2. Emerging applications

• There are several applications of software-defined satellite; one prominent application is the Software-Defined Radios (SDRs). Software-defined satellites take advantage of graphics processing units and field-programmable gate arrays. The SDR is applied to the whole payload. The software-defined satellite could deploy software code to an existing satellite in a day, and operations could begin instantly. By the software-defined approach satellite can be reconfigured for multiple clients and missions.

Software Defined Satellite Market: Growth Drivers vs. Challenges:

Drivers:

• Rising demand for flexible satellite communications: The software-defined satellite helps to control the satellite by the operator as well as by the client. They can control their payload and implement operational scenarios according to mission requirements. It can be used to actively define and shape the performance. It can also give a real-time response to evolving requirements.
• Advancements in technology: ReOrbit demonstrated the satellite for Earth observation in 2025. ReOrbit’s Muon flight software stack acts like a satellite operating system, can be added to any existing satellite body. Further, Gluon by the company is a satellite platform equipped with optical communications terminals for space-to-space and space-to-ground links. These advancements show the commercial and scientific usage of the software-defined satellite.

Challenges:

• High investment:  The price of investment is a major challenge for the faster adoption of the technology.

Software Defined Satellite Market Regional Analysis:

• Asia-Pacific: The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. India and China are major players in space technology in the region.
• North America: North America is a major region offering diverse products and services. The USA is a dominant country in the world, with NASA being the prominent organization. In February 2025, GomSpace North America announced an agreement to provide satellite products and services to a U.S.-based firm. The contract was valued at $650,000. GomSpace North America serves Federal, military, security, academic, and commercial buyers.
• Europe: Europe is a major player in the software-defined satellite. In July 2021, the EUTELSAT QUANTUM satellite was launched ESA Partnership Project. This telecommunication satellite successfully passed its in-orbit acceptance review. This was developed jointly by Eutelsat and Airbus. The flexible software-defined satellite entered commercial service and will provide data and mobile communications for governments and other operators.

Software Defined Satellite Market: Competitive Landscape:

The market is fragmented, with many notable players including Airbus Defence and Space, Boeing, Lockheed Martin (SmartSat technology), Thales Alenia Space, Intelsat, Parsons Corporation, ReOrbit, and Kymeta Corporation, among others:

A few strategic developments related to the market:

• Partnership: In December 2024, Parsons Corporation and Globalstar announced their partnership to support the public, government, and defense sectors. This included Parsons’ software-defined satellite communications solution using Globalstar’s Low-Earth Orbit (LEO) satellite constellation.
• New Product: In May 2024, SKY Perfect JSAT and Thales Alenia Space, the joint venture between Thales and Leonardo, announced they had signed a contract to build JSAT-31. JSAT-31 is a new generation of software-defined satellite based on the Space INSPIRE (INstant SPace In-orbit REconfiguration) platform by Thales Alenia Space.
• Purchase: In March 2024, ReOrbit and SatixFy Communications Ltd. announced a purchase deal of a communication subsystem for ReOrbit´s Gluon platform. This technology can be used by SatixFy radios to accommodate high data rate links to enable communication. The communication can be easily established between ReOrbit Satellites and the ground. 
• Acquisition: In April 2025, MDA Space Ltd., a communication solutions announced the acquisition of all outstanding shares of SatixFy in an all-cash transaction for US$2.10 per share. With this acquisition, MDA Space is taking a huge step towards analog-to-digital satellite technology.
• Contract: In September 2024, Airbus announced it would supply solar arrays for MDA AURORATM, the software-defined satellite product line to MDA Space Ltd. Airbus would supply more than 200 Sparkwing solar arrays. MDA AURORATM software-defined satellite product line features flexibility and enhanced constellation performance at reduced cost.

Software Defined Satellite Market Scope:

Report Metric	Details
Growth Rate	CAGR of 11.40%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Billion
Segmentation	Component Subsystem Orbit Type Application End-User Industry Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in the Software-Defined Satellite Market	Thales Alenia Space Intelsat Parsons Corporation ReOrbit Kymeta Corporation
Customization Scope	Free report customization with purchase

 

Software Defined Satellite Market Segmentation:

By Component

• Hardware
• Software
• Services

By Subsystem

• Payloads
• Power System
• Propulsion System
• Onboard Processing
• Others

By Orbit Type

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

By Application

• Communication
• Navigation
• Earth Observation
• Remote Sensing
• Others

By End-User

• Academic
• Commercial
• Government & Defense

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• South America
  • Brazil
  • Rest of South America
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Rest of Europe
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific

Our Best-Performing Industry Reports:

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1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. TECHNOLOGICAL OUTLOOK 

5. SOFTWARE DEFINED SATELLITE MARKET BY COMPONENT

5.1. Introduction

5.2. Hardware

5.3. Software

5.4. Services

6. SOFTWARE DEFINED SATELLITE MARKET BY SUBSYSTEM

6.1. Introduction

6.2. Payloads

6.3. Power System

6.4. Propulsion System

6.5. Onboard Processing

6.6. Others

7. SOFTWARE DEFINED SATELLITE MARKET BY ORBIT TYPE

7.1. Introduction

7.2. Low Earth Orbit (LEO)

7.3. Medium Earth Orbit (MEO)

7.4. Geostationary Earth Orbit (GEO)

8. SOFTWARE DEFINED SATELLITE MARKET BY APPLICATION

8.1. Introduction

8.2. Communication

8.3. Navigation

8.4. Earth Observation

8.5. Remote Sensing

8.6. Others

9. SOFTWARE DEFINED SATELLITE MARKET BY END-USER

9.1. Introduction

9.2. Academic

9.3. Commercial

9.4. Government & Defense

10. SOFTWARE DEFINED SATELLITE MARKET BY GEOGRAPHY

10.1. Introduction

10.2. North America

10.2.1. USA

10.2.2. Canada

10.2.3. Mexico

10.3. South America

10.3.1. Brazil

10.3.2. Rest of South America

10.4. Europe

10.4.1. UK

10.4.2. Germany

10.4.3. France

10.4.4. Italy

10.4.5. Rest of Europe

10.5. Middle East and Africa

10.5.1. Saudi Arabia

10.5.2. UAE

10.5.3. Rest of Middle East and Africa

10.6. Asia Pacific

10.6.1. China

10.6.2. India

10.6.3. Japan

10.6.4. South Korea

10.6.5. Rest of Asia Pacific

11. COMPETITIVE ENVIRONMENT AND ANALYSIS

11.1. Major Players and Strategy Analysis

11.2. Market Share Analysis

11.3. Mergers, Acquisitions, Agreements, and Collaborations

11.4. Competitive Dashboard

12. COMPANY PROFILES

12.1. Airbus Defence and Space 

12.2. Boeing 

12.3. Lockheed Martin (SmartSat technology) 

12.4. Thales Alenia Space 

12.5. Intelsat  

12.6. Parsons Corporation 

12.7. ReOrbit 

12.8. Kymeta Corporation 

12.9. Eutelsat Communications S.A. 

13. APPENDIX

13.1. Currency 

13.2. Assumptions

13.3. Base and Forecast Years Timeline

13.4. Key benefits for the stakeholders

13.5. Research Methodology 

13.6. Abbreviations 

Airbus Defence and Space

Boeing

Lockheed Martin (SmartSat technology)

Thales Alenia Space

Intelsat 

Parsons Corporation

ReOrbit

Kymeta Corporation

Eutelsat Communications S.A.