The space above the Earth is becoming increasingly crowded, with more frequent launches and satellites being placed closer together. In 2023, space insurers paid out a record-breaking $995 million in claims due to the surge in orbital launches and satellite deployments, primarily driven by SpaceX’s Starlink. A report states that there were 12,597 spacecraft in orbit, with communication satellites accounting for the majority. Both Low Earth Orbit (LEO) and Geosynchronous (GEO) satellites are experiencing overcrowding issues, with a decrease in average separation between satellites. This overcrowding poses risks to valuable satellite services and has resulted in unsustainable losses for insurers in the space industry.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Space insurers record-breaking loss | Increase in satellite launches | Increased congestion and risk in Earth’s orbit due to more frequent launches and satellite deployments | Increased number of satellites and maneuvering satellites |
| GEO satellites experiencing overcrowding issues | Congestion in GEO satellites | Increased congestion in Geosynchronous Orbit (GEO) due to more objects and satellites maneuvering | Increasing need for precise space domain awareness |
| LEO becoming more crowded, risk to valuable satellite services | Congestion in LEO | Low Earth Orbit (LEO) becoming overcrowded, posing a risk to satellites that provide valuable services | Lack of awareness and urgency to address the overcrowding |
| Insurers exiting space industry, increasing premiums | Financial impact | Unsustainable losses in the space insurance market leading to insurers leaving the industry or increasing premiums to offset record losses | Record-breaking loss in the industry and need to mitigate risk |