The satellite market in France

In astronautics, an artificial satellite is a human-made object placed in orbit around the Earth or another celestial body. There are several types of satellites depending on their main function, size, etc., including telecommunications satellites, spy satellites, positioning and navigation satellites, and nanosatellites.

The global satellite market has experienced something of a recovery since the second half of 2020, after a downturn between 2017 and 2019. This is driven by the growth of satellite constellations, such as SpaceX, which has already launched more than 1,200 satellites for its Starlink constellation, and Thales Alenia Space, which has proposed launching 300 satellites for the Canadian telecommunications company Telesat. In 2019, telecommunications satellites accounted for 95% of the value of global satellite exports. This is partly explained by general enthusiasm for 5G technology and broadband. Another explanation is the aim of extending internet access to as many people as possible. In 2019, 3 billion people still had no internet access.

New entrants in the global satellite market have therefore begun competing with traditional operators. Among the longest-established companies are Thales Alenia Space (TAS) and Airbus in Europe, and Boeing and Lockheed Martin in the United States. Although traditional players continue to dominate the satellite market, newcomers such as SpaceX and Kuiper System, an Amazon subsidiary, are gaining market share. Moreover, since 2018 the market has also been stimulated by the growing number of start-ups: in 2019, there were 66 in Europe alone, with an average of 5 new companies being created each year. While 66 start-ups may seem a small number, this reflects the fact that the space sector is highly specialised and requires a wide range of skills, making the creation of start-ups difficult.

Like the global market, the French satellite market weakened between 2017 and 2020. For example, TAS received only 11 satellite orders in 2019, compared with 25 in 2015. However, the market in France recovered towards the end of 2020, when TAS signed a contract worth more than USD 3 billion over 4 years. Other French companies, such as Hemeria, which specialise in nanosatellite construction, are also very active. Hemeria positions itself as the French leader in the nanosatellite market segment, where demand is rising because these satellites are cheaper than large satellites and better suited to telecommunications services.