The emergence of standardized, modular satellite platforms is prompting a reassessment of vertical integration within the space industry, according to manufacturers who spoke at the SmallSat Symposium in Silicon Valley. Instead of designing unique satellites for each mission, companies are increasingly adopting a common platform and swapping out payloads to meet diverse customer needs.
This shift is rekindling a long-standing debate about the effectiveness of owning every part of the supply chain for controlling cost and performance in space. While some companies, like SpaceX and Rocket Lab, are reinforcing their in-house production to maintain tight control over supply chains and manufacturing timelines, others are embracing a diversified supplier base to balance standardization with flexibility.
Airbus, for example, has transitioned from mass-producing identical broadband satellites for OneWeb to building spacecraft for a range of missions, including platforms for interconnected satellites destined for the Space Development Agency (SDA). Debra Facktor, head of Airbus U.S. Space Systems, emphasizes the value of a resilient global supply chain, allowing suppliers to specialize and invest in technology refresh, while Airbus focuses on its core competencies.
Viktor Danchev, chief technology officer of EnduroSat, acknowledges the merits of vertical integration for building identical satellites, but highlights its complexity for multi-mission spacecraft. He argues that the upfront expense can hinder cash flow, especially for smaller constellations.
Brad King, CEO of Orbion Space Technology, notes that SpaceX's success is often attributed to its vertical integration strategy. However, he believes this is more a reflection of the industry's early stages, where suppliers were limited or unreliable. He suggests that vertical integration is often a response to past supplier issues, not an inherent virtue.
The rise of modular satellite platforms and supplier maturity, fueled in part by SDA investments, is creating a more robust market for buying components. Danchev points to the growing preference for baseline satellite buses with configurable options as a key driver of the multi-mission spacecraft trend. This allows customers to pay only for the capabilities they need, while achieving faster launch times compared to custom-designed satellites.
Facktor highlights the impact of advancements in satellite designs and launch capabilities, which have eliminated the need for every satellite to carry multiple payloads. Previously, limited launch options and long design lifespans for geostationary satellites led to overpacking payloads. However, recent progress in launch capabilities, technology miniaturization, and software-driven hardware enhancements have enabled greater flexibility.
This flexibility allows satellite operators to optimize their fleets, combining specialized and multi-mission spacecraft in ways that were previously impractical. The shift toward modular platforms and diversified supply chains is reshaping the space industry, offering new opportunities for collaboration, innovation, and cost-effectiveness.