New Entrants to the Optical Communication Terminal Market: What are the trends in the small satellite market? — Latest Trends in the Space Business: Small Satellite Conference 2024 — Part 3

The Small Satellite Conference 2024 saw a significant increase in the number of exhibitors from businesses that develop optical communication terminals, a departure from the previous years. The number of optical communication-related booth exhibitors, which had been only 3–5 companies until last year, increased to just under 10 this year, and new entrants such as Voyager Space and Astrolight have entered the market one after another, so much so that the booth layout has changed dramatically from previous years. TESAT(*1), Airbus (*2), Cailabs (*3), and Archangel Lightworks (*4), all of which had previously exhibited at the show, also announced successful technology demonstrations, and many topics related to optical communications were covered.

While the optical communication terminal market is thriving in this way, a seemingly puzzling phenomenon is also being observed. Optical wireless communications are superior to conventional RF communications in terms of security, and have attracted the attention of security-related ministries in many countries. However, as mentioned in the previous part of this series, in recent years the need to launch larger and heavier satellites has been increasing in the security field, and the demand for smaller satellites has been declining. Despite this, the market for optical communication terminals is rapidly expanding.

In response to this phenomenon, Mori says

“The detailed reason is unclear, but it may be that there is some lag between the trends in the small satellite launch market and the seeds for optical communication terminals, which are only one component of small satellites,”

In the middle part of the report, I mentioned the impact of the huge demand for security on the small rocket market, but it seems that the aftermath has not yet reached the optical communication terminal market. The gap in trend between the needs of security and the seeds of optical communication terminals observed at the Small Satellite Conference 2024 may provide an important insight into the future trends of the small satellite market.

References

(*1 [SPACE NEWS] Kepler demonstrates optical data relay service in LEO)

(*2 [ESA] In-orbit optical downlink demonstration paves the way for laser satellite communications)

(*3 [Cailabs] Cailabs’ OGS Achieves 2.5km ground-to-ground Link)

(*4 [Archangel Lightworks] Archangel LightworksDemonstrates World-Leading Rapid Deployment of Optical Ground Stations)

(Writer: Junichiro Nakazawa)