In one of the recent conferences, the industry executives have informed that in the coming years, the launch industry is primarily expected to face upheaval and a lot of organizations can stop their operations. The conference took place on the 22nd May, and the Panelists made it clear.
They said this because they are sure that the demand for the vehicles will go down in the future. George Jones who is the senior vice president of the Aerojet Rocketdyne said “There are several organizations in this domain presently. I am sure that more than 80% wouldn’t make it in the long run.”
Experts believe that many nations are giving emphasis on the development of small satellites and they can be launched quickly in conjunction with the others. This can significantly drop the demand for the launch of the vehicles in the time to come. Those with enormous size are at potential risk of not having any application in the time to come. The smaller ones are not very expensive to develop and can quickly be taken into consideration by the game players in future.
The competition is one of the significant factors that are affecting the manufacturers at present. The fact is, organizations from the other nations are challenging each other and have started an era of coming out with launch vehicles that are superior to one another. The launch of smaller launch vehicles by investing a sum of money which no one expected is another reason for this.
A similar statement about the glut in this domain has also been given by an official of the United Launch Alliance. It was said that the future launch vehicles might have overcapacity and it will put the more financial burden on the organizations. This will probably force them to withdraw production, and thus the demand will go down for sure.
The rise in the demand for launch service has made the organizations think twice before taking any primary launch vehicle production into consideration. Also, some factors are indirectly related to the space organizations that can primarily affect the same. The organizations must look for the alternatives that can enable them to have a favorable fortune with the large launch vehicles than putting all their attention on smaller ones. This is one way that can help to avoid this problem in the time to come.