Rising Need for Vertical Integration with Modular Satellites

NewsRising Need for Vertical Integration with Modular Satellites

The Evolution of Satellite Manufacturing: Embracing Standardization and Flexibility

In recent years, the satellite manufacturing industry has experienced a notable shift towards standardized, modular platforms that serve as a versatile foundation for a variety of missions. This transition is redefining the traditional role of vertical integration within the industry, a topic that was fervently discussed by industry leaders on February 4th during the SmallSat Symposium in Silicon Valley.

Traditionally, designing unique satellites for each specific mission was the norm. However, companies are now increasingly adopting a common platform, which allows them to swap out payloads to cater to different customer needs. This approach not only streamlines the manufacturing process but is also reigniting a longstanding debate: is owning every part of the supply chain still the most effective strategy for controlling costs and performance in the space industry?

Some companies, like SpaceX and Rocket Lab, continue to emphasize in-house production to maintain tight control over their supply chains and manufacturing timelines. These companies believe that by keeping everything under one roof, they can ensure quality and efficiency. On the other hand, other industry players are diversifying their supplier base to strike a balance between standardization and flexibility.

"We deliberately made a shift in our strategy," Debra Facktor, head of Airbus U.S. Space Systems, stated during a panel organized by Satnews Events. Instead of building a large number of identical satellites, Airbus has pivoted to a common base that can be used for multiple missions. This move reflects a broader industry trend towards scalable and adaptable satellite platforms.

Airbus, once primarily focused on producing hundreds of identical broadband satellites for OneWeb, has transformed its Florida manufacturing plant. The facility now constructs spacecraft for a myriad of missions, including those designed for interconnected satellite platforms. These platforms are part of a contract with Northrop Grumman to deliver satellites to the Space Development Agency (SDA).

"I value having resilience in the supply chain," Facktor remarked. She highlighted the importance of a strong global supply chain, wherein each supplier excels in their area of expertise. This allows suppliers to invest in their technologies, refresh their processes, and improve over time, relieving Airbus of the need to do so internally.

While vertical integration was once a logical choice for Airbus, particularly during the OneWeb satellite production phase, Viktor Danchev, chief technology officer for EnduroSat, a Bulgaria-based microsatellite specialist, pointed out that the scenario becomes more complex with different spacecraft and multi-mission objectives. Without a substantial constellation to commit to initially, the financial burden can hinder a company’s ability to achieve positive cash flow.

Brad King, CEO of propulsion provider Orbion Space Technology, added that SpaceX’s success is often perceived as a testament to the vertical integration strategy. However, King suggested that this might not inherently be the case. In its early days, SpaceX was compelled to bring capabilities in-house due to the absence or unreliability of external suppliers. Most vertical integrations, he argued, result from being let down by suppliers. Hence, if a company is proficient in managing its processes or if no viable supply chain exists, vertical integration becomes a necessity rather than a strategic advantage.

Today, with the advent of modular satellite platforms and the maturation of suppliers—thanks in part to investments by the SDA—there are more viable options available in the market than ever before.

Danchev emphasized the growing preference for a baseline satellite bus with configurable options as a driving force behind the move towards multi-mission spacecraft. This approach allows customers to pay only for the capabilities they need while achieving faster deployment compared to designing a satellite from scratch for a single mission.

Facktor highlighted how advancements in satellite design and launch capabilities have removed the necessity for each satellite to carry multiple payloads. In the past, limited launch opportunities meant that satellites had to be loaded with every conceivable payload to maximize their utility. However, changes over the past two decades—driven by technological miniaturization, improved launch capabilities, and software’s increasing role in enhancing hardware performance—have transformed this paradigm.

"I don’t have to have every single possible payload on one satellite," Facktor explained. This flexibility now allows satellite operators to optimize their fleets by combining specialized and multi-mission spacecraft in ways that were previously infeasible.

Overall, the satellite manufacturing industry is witnessing a transformation. The shift towards standardized, modular platforms is enabling companies to be more agile, responsive, and cost-effective in meeting diverse mission requirements. As the industry continues to evolve, the balance between vertical integration and supplier diversification will likely remain a topic of ongoing discussion and strategic consideration.

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Neil S
Neil S
Neil is a highly qualified Technical Writer with an M.Sc(IT) degree and an impressive range of IT and Support certifications including MCSE, CCNA, ACA(Adobe Certified Associates), and PG Dip (IT). With over 10 years of hands-on experience as an IT support engineer across Windows, Mac, iOS, and Linux Server platforms, Neil possesses the expertise to create comprehensive and user-friendly documentation that simplifies complex technical concepts for a wide audience.
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