Electric Propulsion Systems Market - Growth, Trends And Forecast (2020 - 2025)
The electric propulsion systems market is anticipated to grow at a CAGR of more than 6% during the forecast period.
Space Segment to Experience the Highest Growth During the Forecast Period
The adoption and diffusion of new technologies, such as satellites, can help disseminate information over broad areas, enable instantaneous telecommunications, generate and transmit high-resolution images of certain points of interests located all around the world simultaneously. The advent of miniaturized electronics and increasing use of smart manufacturing materials have resulted in the development of small satellites with shorter development cycles and lower deployment costs. The physical limitations of such satellites encourage the development and integration of powerful yet compatible electric propulsion systems to effectively perform orbital correction maneuvers. Several contracts are being awarded for the ongoing space missions. Strategic collaborations are underway to capitalise on joint capabilities to address an evolving market opportunity. For instance, in October 2019, Accion was awarded a USD 3.9 million as part of the Moon to Mars technology program. As per the contract, Accion will work with NASA's Jet Propulsion Laboratory (JPL) to replace the cold gas propulsion system that was used on the MarCO CubeSats with a more efficient ion electrospray propulsion system. The program is scheduled to initiate in March 2020, and a potential space launch is expected in the first half of 2021. Such developments are anticipated to drive the business prospects of the players in the market in focus during the forecast period.
Asia-Pacific is Expected to Generate the Highest Demand During the Forecast Period
The Asia-Pacific region is expected to generate the highest demand for electric propulsion systems during the forecast period. This increasing demand is mainly due to the increasing orders and deliveries of new aircraft, ships, armored vehicles, and deployment of satellites driven by the evolving regional dynamics. Several satellite launches are scheduled during the forecast period. Quantification of chemical emissions into the air is a key step in explaining observed variability and trends in atmospheric composition and in attributing these observed changes to their causes on local to global scales. Since, satellite launch vehicles produce different emissions, including water vapor and carbon dioxide from liquid and solid fuels, as well as hydrochloric acid from only solid fuels. Initiatives such as the Mission 2020 encourage the adoption of green propulsion technologies, such as electric propulsion, to restrict the ongoing global climate conversion through minimizing the greenhouse gas emissions by 2020.
In the Asia-Pacific, several modernization programs are underway to enhance the current capabilities of the commercial and military end-users in the region. For instance, as part of its modernization initiative, the South Korean Navy has plans to induct the KDDX destroyer and the LPX-II amphibious assault ship by 2025. In October 2019, GE showcased its power and propulsion capabilities at the MADEX International Marine Industrial Defense Exhibition held in Busan. As part of its diversified portfolio in naval hybrid electric propulsion systems, the company showcased both the hybrid electric drive (HED) and the integrated full electric propulsion (IFEP) at the event. GE's HED offering for the KDDX program is envisioned to use the 3.4-megawatt shock tested motor designed for the United Kingdom Royal Navy's Type 26 frigate, while its IFEP system would be nearly identical to the one designed for the UK's Type 45 destroyer. Similar developments are envisioned to enhance the demand for electric propulsion systems across all platforms, thereby driving the growth prospects of the market in focus during the forecast period.
The prominent players in the electric propulsion systems market are Sitael S.p.A., Busek Co. Inc., The General Electric Company, Thales Alenia Space, and Safran SA. These companies are majorly into design, manufacturing, and integration of complete electric propulsion systems for all application platforms. The market is highly competitive with the major players partnering with the manufacturers of satellites, ships, armored vehicles, and aircraft to produce custom requirement-based product designs. High capital expenditure on account of conducting extensive R&D to develop advanced electric propulsion systems and enhance their current capabilities poses a threat to new market entrants. Additionally, the use of 3D printing technology in propulsion drives is anticipated to simultaneously generate demand for new system components and designs to cater to the demand for sophisticated electric propulsion systems with reduced size and mass without compromising on relative performance.