Spacecraft Subsystem Market Size, Share, Opportunities, And Trends By Subsystem Type (Payload, Electrical and Power Subsystem, Command and Data Handling System, Communication Subsystem, Thermal Control Subsystem, Attitude Determination and Control Subsystem, Propulsion System, Others), By Spacecraft Type (Satellites, Crewed Spacecraft, Space Probes, Space Rovers and Landers, Space Tugs and Servicers), By Application (Communication, Earth Observation and Remote Sensing, Navigation and Mapping, Space Exploration and Scientific Research, Defense and Security), By End-User (Commercial Space Organizations, Government and Military Space Agencies, Research Institutions), And By Geography – Forecasts From 2025 To 2030

Spacecraft Subsystem Market Size:

The Spacecraft Subsystem Market is projected to grow at a CAGR of 6.73% from 2025 to 2030.  

Spacecraft Subsystem Market Trends:

Surge in commercial satellite launches, increasing private sector investment in space exploration and satellite services, rising government initiatives for defense and national security, rising demand for earth observation for environmental monitoring, as well as disaster management, are some of the key factors fueling the deployment of satellites and spacecraft, thereby, propelling the spacecraft subsystem market to grow. The development and advancement of cost-effective and compact satellites are leading the market to expand.

Spacecraft Subsystem Market Overview & Scope:

The Spacecraft Subsystem Market is segmented by:

• Type: The Spacecraft Subsystem Market is segmented into Payload, Electrical and Power Subsystem, Command and Data Handling System, Communication Subsystem, Thermal Control Subsystem, Attitude Determination and Control Subsystem (ADCS), Propulsion System, and Others. During the forecast period, the communication and power subsystem will constitute a major share.
• By Spacecraft Type: By spacecraft type, the market is categorized as Satellites, Crewed Spacecraft, Space Probes, Space Rovers and Landers, and Space Tugs and Servicers. Satellite will continue to hold the largest share.
• By Application: By application, the market is segmented into Communication, Earth Observation and Remote Sensing, Navigation and Mapping, Space Exploration and Scientific Research, and Defense and Security. Communication will continue to constitute the major share, while Earth observation is expanding significantly.
• By End-User: The Spacecraft Subsystem Market is categorized by end-user into Commercial Space Organizations, Government and Military Space Agencies, and Research Institutions.  While the government constitute the major share, the forecast period will witness commercial space organisations holding a significant share.
• Region:  The market is segmented into five major geographic regions, namely North America, South America, Europe, the Middle East and Africa and Asia-Pacific. Asia-Pacific is expected to witness fastest growth while North America will constitute a major share in the market.

Top Trends Shaping the Spacecraft Subsystem Market:

1. Increasing shift towards compact and efficient systems

• As the satellite and spacecraft launches are becoming more and more compact, such as a rise in SmallSats or Cubesats, there is increasing demand for smaller and compact subsystems like power management devices, onboard computers, and communication systems, making an emerging shift towards compact subsytems.
• For example, in April 2025, Rocket Lab USA Inc. launched a family of customizable and next-gen solar arrays and the standarized array for satellites operating in any orbital conditions. These products can be tailored to meet the specific satellite power needs requirements from 100 watts to greater than 2,000 watts.

2. Increasing demand for high-resolution imaging and multi-spectral payloads

• There is a growing demand for payloads that have the capabilities of high-resolution imaging, hyperspectral data collection and multi-spectral. The demand is more driven for its application in earth observation and climate monitoring.
• Market players are aligning themselves with the trend, launching products with high-resolution imaging capabilities and hyperspectral and multispectral capabilities. For example, in September 2024, KalaidEO Space Systems, a Bengaluru-based company, launches a high-resolution, optical and multispectral payload. The payload will deliver a near 1-meter Ground Sampling Distance, covering a 65 km swath. It offers at least 15x more area than most payloads, as per the company.

Spacecraft Subsystem Market Growth Drivers vs. Challenges:

Opportunities:

• Surge in commercial space activities: The growing investment by the private sector in space exploration and the increasing number of satellites launched by the commercial sector will be one of the major factors driving the spacecraft market growth, which will lead the subsystem market to grow. SpaceX’s achievements, as well as efforts by Boeing, Blue Origin and Virgin Galactic, are marking a new chapter of spaceflight led by the private firms, giving a boost to the spacecraft subsystem market as well. Novaspace, a European company, valued the space economy at US$596 billion in 2024 and projected it to grow to US$944 billion by 2033, highlighting the tremendous growth in commercial space activities, highlighting the growing commercial space activities, leading to growth in satellite and spacecraft launches, propelling the subsystem market to grow.

Challenges:

• High cost of subsystem development:  One of the major factors that restrains the entry into the spacecraft subsystem market is the high development cost of subsystems, more particularly for deep-space. This leads to the requirement of significant investment in research and development, restraining the entry of smaller players, especially where there is not much government support or credit facilities.

Spacecraft Subsystem Market Regional Analysis:

• North America: The North American region will dominate the market due to a rise in private investment, governments' support for private investment, and the presence of major space agencies of the world, as it is home to NASA. The space economy accounted for $131.8 billion, or 0.5 per cent, of total U.S. GDP in 2022 (Bureau of Economic Analysis, USA, June 2024 Report). Additionally, the high investment in research and development, along with the emergence of new technologies, is driving the market to grow. SpaceX has rapidly emerged as a dominant force in both satellite communications and space launch services, driving the North American region to grow rapidly. As per the Novaspace Report, out of the US$596 billion global space economy, North America constitutes US$86 billion in 2024, the highest share, highlighting the dominant market share of the region in the subsystem market as well. 
• Asia-Pacific: The Asia-Pacific will be growing at the fastest rate during the forecast period.  Also, the same report by Novaspace estimated a US$45 billion, i.e., 7.55% market share of Asia-Pacific in the Space Economy in 2024. However, increasing expenditure by the government and rising government space programs will be driving the market. For example, India’s Chandrayaan Mission, Aditya-L1 and Gaganyaan mission and China’s Chang’e program and others will be propelling the market growth of subsystems as well.

Spacecraft Subsystem Market Competitive Landscape:

The spacecraft subsystem market is moderately fragmented, with key players specializing in different types of subsystems. Some major companies include Lockheed Martin Corporation, Axelspace Corporation, Chang Guang Satellite Technology Co. Ltd., Airbus S.A.S., Ball Aerospace (BAE Systems Inc.), Honeywell International Inc., Northrop Grumman, and Mitsubishi Electric Corporation.

• Product Launch: In January 2025, Bellatrix Aerospace launched its green monopropellant propulsion package for space. The Rudra 1N, is a green mono-propulsion system consisting of tanks, valves, propellant and catalyst.
• Product Innovation: In March 2025, Sidus Space added LizzieSat-3 to its Sidus Space’s growing constellation. It is equipped with advanced payload subsystems, including sensors, technologies including advanced cameras and radio frequency sensors, offering real-time, AI-powered intelligence from Low Earth Orbit. 

Spacecraft Subsystem Market Scope:

Report Metric	Details
Growth Rate	CAGR of 6.73%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Billion
Segmentation	Type Spacecraft Type Application End-User Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in the Spacecraft Subsystem Market	Lockheed Martin Corporation Axelspace Corporation Chang Guang Satellite Technology Co. Ltd. Airbus S.A.S. Ball Aerospace
Customization Scope	Free report customization with purchase

 

Spacecraft Subsystem Market Segmentation:

By Subsystem Type

• Payload
• Electrical and Power Subsystem
• Command and Data Handling System
• Communication Subsystem
• Thermal Control Subsystem
• Attitude Determination and Control Subsystem
• Propulsion System
• Others

By Spacecraft Type

• Satellites
• Crewed Spacecraft
• Space Probes
• Space Rovers and Landers
• Space Tugs and Servicers

By Application

• Communication
• Earth Observation and Remote Sensing
• Navigation and Mapping
• Space Exploration and Scientific Research
• Defense and Security

By End-User

• Commercial Space Organizations
• Government and Military Space Agencies
• Research Institutions

By Region

• North America
  • USA
  • Canada
  • Mexico
• South America
  • Brazil
  • Others
• Europe
  • United Kingdom
  • Germany
  • France
  • Italy
  • Others
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Others
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Others

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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. SPACECRAFT SUBSYSTEM MARKET BY SUBSYSTEM TYPE

5.1. Introduction

5.2. Payload

5.3. Electrical and Power Subsystem

5.4. Command and Data Handling System

5.5. Communication Subsystem

5.6. Thermal Control Subsystem

5.7. Attitude Determination and Control Subsystem

5.8. Propulsion System

5.9. Others

6. SPACECRAFT SUBSYSTEM MARKET BY SPACECRAFT TYPE

6.1. Introduction

6.2. Satellites

6.3. Satellites

6.4. Crewed Spacecraft 

6.5. Space Probes 

6.6. Space Rovers and Landers

6.7. Space Tugs and Servicers 

7. SPACECRAFT SUBSYSTEM MARKET BY APPLICATION

7.1. Introduction

7.2. Communication

7.3. Earth Observation and Remote Sensing

7.4. Navigation and Mapping

7.5. Space Exploration and Scientific Research

7.6. Defense and Security

8. SPACECRAFT SUBSYSTEM MARKET BY END-USER

8.1. Introduction

8.2. Commercial Space Organizations

8.3. Government and Military Space Agencies

8.4. Research Institutions

9. SPACECRAFT SUBSYSTEM MARKET BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. By Subsystem Type

9.2.2. By Spacecraft Type

9.2.3. By Application

9.2.4. By End-User

9.2.5. By Country

9.2.5.1. USA

9.2.5.2. Canada

9.2.5.3. Mexico

9.3. South America

9.3.1. By Subsystem Type

9.3.2. By Spacecraft Type

9.3.3. By Application

9.3.4. By End-User

9.3.5. By Country

9.3.5.1. Brazil

9.3.5.2. Argentina

9.3.5.3. Others

9.4. Europe

9.4.1. By Subsystem Type

9.4.2. By Spacecraft Type

9.4.3. By Application

9.4.4. By End-User

9.4.5. By Country

9.4.5.1. United Kingdom

9.4.5.2. Germany

9.4.5.3. France

9.4.5.4. Spain

9.4.5.5. Others

9.5. Middle East and Africa

9.5.1. By Subsystem Type

9.5.2. By Spacecraft Type

9.5.3. By Application

9.5.4. By End-User

9.5.5. By Country

9.5.5.1. Saudi Arabia

9.5.5.2. UAE

9.5.5.3. Others

9.6. Asia Pacific

9.6.1. By Subsystem Type

9.6.2. By Spacecraft Type

9.6.3. By Application

9.6.4. By End-User

9.6.5. By Country

9.6.5.1. China

9.6.5.2. Japan

9.6.5.3. India

9.6.5.4. South Korea

9.6.5.5. Taiwan

9.6.5.6. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. Lockheed Martin Corporation 

11.2. Axelspace Corporation 

11.3. Chang Guang Satellite Technology Co. Ltd. 

11.4. Airbus S.A.S. 

11.5. Ball Aerospace (BAE Systems Inc.) 

11.6. Honeywell International Inc. 

11.7. Northrop Grumman 

11.8. Mitsubishi Electric Corporation 

11.9. Israel Aerospace Industries Ltd. 

11.10. OHB System AG 

11.11. Thales Alenia Space 

11.12. Maxar Space Systems 

12. APPENDIX

12.1. Currency 

12.2. Assumptions

12.3. Base and Forecast Years Timeline

12.4. Key benefits for the stakeholders

12.5. Research Methodology 

12.6. Abbreviations 

Lockheed Martin Corporation

Axelspace Corporation

Chang Guang Satellite Technology Co. Ltd.

Airbus S.A.S.

Ball Aerospace (BAE Systems Inc.)

Honeywell International Inc.

Northrop Grumman

Mitsubishi Electric Corporation

Israel Aerospace Industries Ltd.

OHB System AG

Thales Alenia Space

Maxar Space Systems