In-orbit service providers need to expand their capabilities to generate continuous revenue

Governments worldwide have shown considerable interest in the use of in-orbit services (IOSs) to address space safety and sustainability challenges. However, the commercial sector is not as convinced of the benefits of these services. The price of IOS missions is still very high, technology readiness is low and established regulations are either not always enforced or they have only a limited impact on commercial players. As such, one-off IOS missions are less attractive to commercial satellite operators compared to governments, and the former have shown a lower willingness to pay for these services. Therefore, IOS providers should expand their capabilities outside the IOS market to ensure revenue continuation, rather than offering only one-off IOS missions.

Analysys Mason’s In-orbit satellite services: trends and forecasts 2024–2034 shows that the IOS market will generate USD26 billion in cumulative revenue between 2024 and 2034. Last-mile delivery (LMD) accounts for the largest share of revenue (48%), and most of this is generated by commercial IOS customers. However, the revenue from all other IOS types is generated almost equally by government and commercial customers. This indicates that the IOS market is not yet as commercialised as established markets such as those for satellite communications and Earth observation.