Satellite operators seek alternative launch capacity as SpaceX scales back

Satellite operators are increasingly turning to boutique launch providers as they seek to secure dedicated access to orbit, a move driven by concerns over the availability of capacity from dominant market players. This shift is particularly evident among companies requiring specific orbital parameters for satellite servicing and debris removal missions, where standard rideshare options are often insufficient. The recent successful orbital flight of Isar Aerospace’s Spectrum rocket has been welcomed by industry stakeholders, including Astroscale, which has secured launch contracts with the German startup for two significant missions scheduled for next year.

The decision by established firms to commit to unproven launch vehicles reflects a broader assessment that the current market does not offer enough reliable options for smaller payloads. Astroscale, a Japanese-headquartered company specialising in satellite servicing and space debris mitigation, signed its first agreement with Isar in March, before the company had achieved a successful orbital launch. A second contract followed shortly after Isar’s inaugural test flight, which delivered a batch of CubeSats to low-Earth orbit from a spaceport in northern Norway. This success came after a failed test flight in the previous year, but it has bolstered confidence among customers who require dedicated launches into unique orbits.

Chris Blackerby, chief operating officer at Astroscale, noted that the company’s business model relies heavily on dedicated launches rather than rideshare services. He explained that while rideshare is possible, it is significantly more complex for missions targeting specific satellites for servicing. The company’s previous mission, ADRAS-J, was small enough to fit on Rocket Lab’s Electron rocket, but its upcoming missions, ELSA-M and ADRAS-J2, exceed the payload capacity of that vehicle. Rocket Lab’s larger Neutron rocket is not yet operational, leaving a gap in the market for the 500 to 700 kilogram class of payloads that Astroscale requires.

Blackerby stated that the company conducted extensive due diligence, including site visits to Isar’s manufacturing facilities and discussions with technical leaders, before committing to the launch provider. He acknowledged the risk associated with selecting a company that has not yet demonstrated consistent success but expressed confidence in Isar’s capabilities following the successful test flight. The CEO highlighted that the launch met all milestones, including payload deployment, and that the team’s preparation and execution were exemplary. This validation is crucial for Astroscale, which views the launch market as a critical bottleneck for its operations.

The broader context for this strategy includes recent developments at SpaceX, which is reportedly dialing back its Falcon 9 launch program. Additionally, there is uncertainty regarding the availability of rideshare capacity on SpaceX’s Starship, which is currently focused on launching its own Starlink satellites. These factors have prompted satellite operators to diversify their launch portfolios. Other European companies, such as Rocket Factory Augsburg and PLD Space, are also working to establish themselves in the launch market, alongside the incumbent providers Arianespace and Avio. The European Space Agency, the European Union, and the governments of Norway and Germany have also backed Isar, reflecting a strategic interest in maintaining a competitive launch sector within Europe.

Astroscale’s upcoming missions include ELSA-M, led by its UK division, which aims to capture and deorbit a satellite from Eutelsat’s OneWeb constellation to demonstrate end-of-life servicing. The other mission, ADRAS-J2, is partially funded by the Japanese space agency and will attempt to remove a defunct Japanese rocket from orbit. This follows the successful ADRAS-J mission in 2024, which approached and inspected the same rocket body. Blackerby noted that the data gathered from ADRAS-J, including images of the target object, has been instrumental in preparing for ADRAS-J2. The company is also working on the ISSA-J1 mission with JAXA, which involves inspecting two decommissioned Japanese satellites, a task that requires more complex rendezvous and proximity operations due to the potential for the objects to be spinning.