The space industry is undergoing a transformation with the rise of standardized, modular satellite platforms designed for multiple missions. This shift challenges the traditional approach of vertical integration, prompting a discussion on the most efficient way to manage costs and performance. At the SmallSat Symposium in Silicon Valley, manufacturers debated the merits of controlling the entire supply chain versus leveraging a diverse supplier network.
Companies like SpaceX and Rocket Lab are committed to in-house production for tighter control. However, others, such as Airbus, are adopting a strategy of using a diverse supply base to balance standardization with flexibility. Debra Facktor, head of Airbus U.S. Space Systems, stated, “We deliberately made a shift in the strategy from [building] a lot of one to having a common base that could be used for multiple missions.” This approach allows Airbus to benefit from the specialized expertise and technological advancements of its suppliers, fostering resilience within the supply chain.
Viktor Danchev, chief technology officer for EnduroSat, highlighted the complexities of vertical integration for multi-mission spacecraft. He noted that “it gets much more complex when you have different spacecraft, and especially if you try the multi-mission,” and that significant upfront investment can hinder profitability. Brad King, CEO of Orbion Space Technology, offered a nuanced perspective on SpaceX’s success, suggesting that its vertical integration was largely a response to the limitations of the early space industry's supply chain rather than an inherent advantage. He added, “Most vertical integrations are the result of being hurt by a supplier…but I don’t think it is a virtue in and of itself.”
The move toward multi-mission spacecraft, enabled by configurable satellite buses, allows customers to select only the needed capabilities, accelerating time to orbit. The evolution of launch capabilities and technological miniaturization has also reduced the necessity for every satellite to carry multiple payloads. Facktor emphasized this shift, stating, “Back in the day, when we had limited launch options, you had one opportunity to launch…you’re going to put every single possible payload that you could think of because you might not get another chance.” This flexibility empowers satellite operators to create optimized fleets using a mix of specialized and multi-mission spacecraft.