LCA EXPERTISE IN THE GLOBAL SPACE INDUSTRYemits.sso.esa.int/emits/owa/loadfiles.showfile?p_file... · 2015-07-23 · 2015 9 LCA, with more than 15 years of experience in the Aerospace

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FIRST CONTACT PRESENTATION

Prepared for: European Space Agency

LCA EXPERTISE IN THE GLOBAL SPACE INDUSTRY

2015 2015

This document contains a large amount of material that is proprietary to LCA and represents our accumulated experience that we believe gives us a competitive advantage in this area Under no circumstances should any part of this document be copied without the prior permission of a Partner of LCA

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LCA EXPERIENCE IN AEROSPACE & DEFENCE

LCA IN BRIEF

AGENDA

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Leoni Corporate Advisors (LCA) is an independent strategy consulting boutique with a consolidated global footprint, specialized by region, industry and topic.

LCA IN BRIEF

LCA has a successful track record in the Aerospace, Defense & Transportation that covers also thanks to the business partnership with Corporate Value Associates (CVA).

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• Performance and Profitability Improvement

• Program Management Office (PMO)

•  Human Capital Management

ORGANIZATION

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Our advisory experience focus on our clients’ most critical business topics: LCA VALUE PROPOSITION

STRATEGY

• Growth strategy

• Value Chain Management

• Business Model Innovation

MARKETING

• Customer Strategy

• Value Proposition Innovation

• Go-To Market Strategy

FINANCE

• M&A

• Business Planning

• Risk Management

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LCA IN BRIEF

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AGENDA

• LCA experience in the Aerospace & Defense Market • On-Orbit Satellite Services Market

• Space Debris Issues

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LCA has more than 15 years of experience in Aerospace & Defense Market, working on strategic issues of leading global players, furthermore strengthened by the knowledge and expertise acquired via the Global Space Market Observatory.

LCA EXPERIENCE IN AEROSPACE & DEFENSE

Growth Strategy & Business Model Innovation

• Market scenarios and long term trends • Competitive benchmarking

• Growth strategy and business portfolio optimization • Value chain management and business model innovation • M&A and post-acquisition • Coopetition and Industrial Partners hip • Stakeholders management and lobbing plan

Sourcing Strategy and Lean Organization

•  Industrial Footprint Optimization • Lean Organization

• Customer/Supplier Panel Development • Sourcing strategy and Make or Buy Options

Value Proposition and Go to Market Strategy

• Value Proposition Innovation and Pricing Strategy • Commercial Partnerships for Market Penetration

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VALUE PROPOSITION FOR AEROSPACE & DEFENSE COMPANIES LCA is trusted advisor of major industrial operators in the European industry, thanks to an in-depth industry knowledge and a strong network of relationships

We have been advising our clients in assessing market opportunities by designing the best strategic scenarios and the most efficient business model to harness them

We have developed Sourcing Strategies and helped our clients approach the topic inherent the Lean Organization. To help them face the rising pressure on costs, we have supported corporates to optimize their industrial organization and to better manage the relationship with the suppliers

We have helped our customers understanding the competitive arena in which they are playing and assessing at best market threats and opportunities. This has been achieved through the design of Growth and Partnering Strategies, the renewal of Business Models, through competitive benchmarking and the consequent reshaping of the Value Propositions and Commercial Strategies.

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LCA, with more than 15 years of experience in the Aerospace & Defense industry, working on strategic issues of leading players worldwide, constantly runs a Global Space Market Observatory to be always up to date with the current trends and dynamics of the market from a worldwide prospective, with a specific focus on 3 main regions: USA, Europe and Russia.

LCA is monitoring five Value Steps of the Space Market:

•  Space Transportation: due to a great pressure on economic self-sustainability, the relationship between Launch service providers and customers (institutional and commercial) has reshaped the industry dynamics, imposing new Organizational Paradigms and the evolution of the competitive positioning of the major players

•  Satellites and related Services: New private operators and more emerging countries consolidating their presence in the industry have drawn the attention to new business models capable of coping with tighter competition and improved service levels

•  Space Exploitation: the consolidation of existing technologies and the rush to access new ones are the main factor pushing for new and innovative service to better and sustainably exploit space

•  Space Exploration: human activities in space is broadening its perimeter setting higher and more challenging targets; Mars is the next goal and other long term goals are being set

•  Space Tourism is one of the most significant trends emerging in the market, boosting especially private investments in new technologies and ventures and fostering potential spill-overs into civil and military aviation

LCA has access also to broader range of sources encompassing the area of: evolution of stakeholder dynamics by region/country, Industrial footprints and value chains plays dynamics, commercial offering and value proposition innovation, Development Programs and Public Private Partnership Models

The Aerospace & Defense industry has faced unparallel developments in the last decade, facing with new technological and competitive challenges

INTRODUCTION TO GLOBAL SPACE MARKET OBSERVATORY (1/3)

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Considering the fast market evolution, LCA has run an Observatory on the Space Market, to improve ability to advice customers on business model evolution and long term strategy.

LCA has more than 15 years of experience in the Aerospace & Defense industry, working on strategic issues of leading players worldwide


Objectives • To monitor stakeholders dynamics and long term trends • To monitor business models evolution and value chain

plays • To qualify potential cooperation axes among

stakeholders at regional and global level

Methodology • Desk analysis •  In-Depth-interviews with Senior Management and

Experts • Stakeholders mapping and profiling

Scope • From a Geographical viewpoint: EU, Russia, USA, India,

Japan, Brazil • From a stakeholders categories point of view:

Policymaker, R&D, Industry, Aggregators, Space Agencies

• From a business and technical point of view: all the value steps of the space market (i.e. Satellites, Ground Segment, Services, Space Transportation, Science,..)

• From a client segments viewpoint: military, institutional and commercial

LCA Global Space Market Observatory

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Space Tourism Space

Transportation Satellites & Services

Space Exploration Space Exploitation

An in-depth stakeholder analysis and mapping to monitor market dynamics of the major global investors and to qualify potential cooperation axes for space market development

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Within the research activities of the Global Space Market Observatories LCA’s consultants gather large amount of information and market insights, which are later condensed into the company knowledge base. Some of the most interesting topics develops into White Papers LCA shares with its network.

Currently LCA’s released White Papers are:

•  On-Orbit Satellite Services Market – Outlook of On-Orbit Service market up to 2040 with a focus on demand side in terms of institutional and commercial customer and competitive strategies of main players.

•  Space Debris Issue - Monitoring of macro market drivers (Technological, Economic, Environmental, Regulatory trends) and emerging business models.

This document represents an abstract and of broader researches. LCA has access not only to this brief

information, but to a broader range of sources and materials

LCA constantly screens the 5 main thematic areas of the Aerospace & Defense industry searching and deepening its knowledge on the newer market and technological trends which affects all the Value Chain steps and therefore involve a consistent number of players


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LCA IN BRIEF

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AGENDA

• LCA experience in the Aerospace & Defense Market

• On-Orbit Satellite Services Market


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The following slides are an illustration of some of our research and analysis on the On-Orbit Satellite Services topic, with a quick outlook of the issue itself (market definition and scope of the analysis) and a some preliminary stakeholder analysis and mapping of the major players in the market

FOCUS ON SATELLITE AND SERVICES: ON-ORBIT SATELLITE SERVICES












On-Orbit Satellite Services could be a potentially viable and consistently profitable market, increasing business opportunities for the operators and improving space sustainability

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Space Transportation Satellites & Services Space Tourism

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OOS MARKET DEFINITION AND PERIMETER, MULTIPLE MARKET “GEOMETRIES”

Agencies tends to deliver broader definitions of the possible range of potential services, setting as critical factor the technological developments, Commercial Operators tend to define the market with a more focused approach, using as central market factor the additional profitability given by the prolonged exploitation of an asset. The width of the definition is influenced by their core capabilities and current Value Proposition.

How do different stakeholders define the perimeter of OOS market?

The plurality of stakeholders views on market “geometries” is key element that will shape Demand and consequently Market Segmentation

The main potential stakeholders of the On-Orbit Satellite Servicing market are: Satellite Bus Providers, Satellites Owners and Operators, Agencies and Policy Makers, with key Influencers such as Insurance Providers and Legal Advisors

Type of Operator Definition Critical Factor Services

Institutional Operator

The use of innovative robotic tools and techniques to remotely manipulate standard satellite interfaces that were not designed to be manipulated robotically

Space Agency (NASA) Technology

Refueling, Repair, Replacement,

Relocation, Remote survey, Disposal (ADR),

Cargo, etc.

Commercial Operator

On-orbit satellite services are represented by the development of capabilities such as Robotic and Human-tended system, ATV, Liberty transportation service, for which new business models need to be developed

Integrated Space Player

(Astrium)

Service

Refueling, Repair, Replacement,

Relocation, Cargo On-orbit satellite services are those solutions able to

augment the missions, enhance revenues and reduce insurance cost

Satellite Operators (Loral)

Illustrative

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OOS MARKET SEGMENTATION, ON-ORBIT SERVICES SPECTRUM (1/2)

*List to be considered not exhaustive

All the potential On-Orbit Services should be evaluated in terms of target customers, profitability and possible integration with the operator Value Proposition

Which on-orbit services and technology, customer typologies and needs are included?

Robotic refueling

•  Offers the capability to extend the life of space assets •  Launch with less fuel, more payload

Remote survey Provide the ability to fly around a satellite to survey, visually inspect and evaluate a damaged satellite

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Repair

•  Includes fixing or restoring failed spacecraft components as well as deploying stuck appendages •  Maintenance of large space platforms (ISS)

Replacement

Includes changing or supplementing of malfunctioning satellite components

Relocation Provides the ability to move space assets to new locations including boosting satellites to the correct orbit after an initial failure or serving as a space tug to maneuver a satellite to other locations

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In-Space Platform (ISS) Equipment, Good or Human Cargo to the ISS and other operational space precincts

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Other Cargo Services Human Cargo for Space Tourism, etc.

ADR Remove a non-cooperative satellite from its position and orbit

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On-Orbit Services

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Illustrative

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OOS MARKET SEGMENTATION – ON-ORBIT SERVICES SPECTRUM (2/2)

*List to be considered not exhaustive

The more complex is the mission the higher Value Added can be delivered to a Customer. Several Value Added On-Orbit Services can be considered desirables by prospective customers leading to some potential Value Proposition scenarios

Which on-orbit services and technology, customer typologies and needs are included?

Transportation

In-Space Platform (ISS)

Cargo & Crew

Other Cargo Services

Disposal

ADR

Disposal

…

Satellite Lifecycle Services

Operation

Robotic refueling

Remote survey

Maintenance

Repair

Replacement

Relocation

Market Segments & related On-Orbit Services

Which are the segments with higher market potential?

Illustrative

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Which will be the dominant value proposition and service model that will emerge? Which kind of customer needs it will address?

OOS MARKET VALUE PROPOSITION EVOLUTION

From a Technical Performance driven Value Proposition to a Global Service Value Proposition

•  To commit on a technical performance to be delivered: in the specific case crew and equipment cargo to the ISS or other space infrastructure

•  To commitment on a more sustainable exploitation of Space: in this specific case to offer a Disposal (ADR) service for the space debris currently in orbit

•  To provide a large range of O&M On-Orbit Services for the current and future satellite installed base: Remote survey, Refueling, Replacement service, etc.

Evolution of Value Proposition in the On-Orbit Service Market

INSTITUTIONAL MARKET

COMMERCIAL MARKET

2022 2040 2013

Players in the space industry, to remain competitive, need to develop a wider portfolio of on orbit services evolving their value proposition accordingly to customer expressed requirements and latent needs

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Global Lifecycle Service

Transportation Services Cargo Crew Tourism

ADR Repair Refuelling

Relocation Refueling* Repair -

Replacement Refueling Deorbit / Graveyard

Remote survey

Launch End of life

Propensity to Invest Institutional + Commercial Institutional

Illustrative

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OOS MARKET VALUE PROPOSITION, GLOBAL LIFECYCLE SERVICES

Relocation Refueling* Repair -

Replacement Refueling Deorbit / Graveyard

Remote survey

Launch End of life

* OOS allow to launch with less fuel and more payload. Refueling can then be necessary at the early stages of life

Gravity field and steady-‐state Ocean Circula4on Explorer (GOCE) -‐ ESA

Envisat Earth observa4on satellite – ESA

NEE-‐01 Pegaso CubeSat-‐ AECE

Glory Scien4fic Satellite -‐ NASA

Each of the above mentioned On-Orbit Satellite Services can be associated to both a specific customer and some selected satellite life-cycle momentum allowing a more precise customer segmentation and assessment of needs

An enhanced Value Proposition offering multiple On-Orbit Services, both for Commercial and Institutional customers, will be a critical elements in order to maintain competitiveness

OG2 prototype satellite -‐ OrbComm

Yamal-‐402 Communica4on Satellite -‐ Gazprom Space Systems

W3B Communica4on Satellite -‐ Eutelsat

Illustrative

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KEY QUESTION FOR A THOROUGH MARKET ASSESSMENT When considering the On-Orbit Satellite Service Market two main tier of question arise, question related to the market perimeter and related influencing elements and question related to market segmentation and related forecast

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Market Perimeter and Macro-Micro Demand Drivers for OOS •  How do different stakeholders define the perimeter of OOS market?

•  Which is current status of demand for OOS? What is the growth potential for the next 20 years? •  Who are target customers for this market (institutional vs. commercial)? What is their maturity

level (intention to invest)? How customer needs will evolve in the next 20 years? •  Which will be the macro trends of space market that can have an indirect influence on OOS

market growth? Technological, Economic, Environmental, Regulatory trends, etc.? •  Which are other micro trends that have a stronger direct impact on demand structuring? •  Which kind of operators will be the main players? With which dominant business model? Market Segmentation and Forecast for OOS •  Which will be major differences by market segments (Debris, Satellite O&M, etc.)? •  How demand drivers will influence OOS market segmentation? Which is the potential for major

market segments (Space Debris, Satellite O&M, Cargo, etc.)? •  Which will be the dominant value proposition and service model that will emerge? •  Which will be an average level of investment by mission/satellite that a customer will be ready to

mobilize? •  Which is business model - for different market segments – sustainable both for the Service

providers and the Final Customers?

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LCA IN BRIEF

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AGENDA

• LCA experience in the Aerospace & Defense Market

• On-Orbit Satellite Services Market


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The following slides are an illustration of some of our research and analysis on the Space Debris topic, with a quick outlook of the topic itself (market definition and scope of the analysis) and a some preliminary stakeholder analysis and mapping of the major players in the market

FOCUS ON SPACE EXPLOITATION: SPACE DEBRIS












Orbital debris represent a threat for current and future launches into space. Their amount is increasing, together with the chances of further collisions

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Space Transportation Space Tourism Satellites & Services


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Orbital debris is any man-made object in orbit about the Earth which no longer serves a useful function The main space debris’ sources are: •  Non-functional spacecraft •  Abandoned launch vehicle stages •  Mission-related debris •  Fragmentation debris

Also known as “Space Junk”, space debris can be categorized according to their dimensions: •  < 1 cm è debris of little relevance, shields can help avoiding impacts •  > 1 cm è collisions whit this of debris type can disable or disrupt a mission

–  Debris exceeds 300.000 in LEO è Over 19.000 are between 5 cm and 1 m both in LEO and GEO

Debris can cause several kind of negative externalities on human activities: •  Collisions

–  With operational spacecraft: from minor damage to total destruction –  With other debris resulting in generation of more debris

•  Space Science –  Debris effects may be mistaken for other phenomena or may mask other celestial phenomena

•  Astronomy –  Debris trails are increasingly prevalent on astronomical images –  Produce transient radio astronomical events due to reflection of ground and space transmitters

•  Other –  Reentry hazard from large debris objects –  Radiation hazard from some debris

MARKET DEFINITION AND PERIMETER

"Orbital debris poses a risk to reliable use of space-based services and operations and to the safety of persons and property in space and on Earth. The U.S. shall seek to minimize the creation of orbital debris by government and non-government operations in space in order to preserve the space environment for

future generations.“ - NASA

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SPACE DEBRIS REMOVAL SOLUTIONS

ALTERNATIVE SOLUTIONS PROS + CONS -

A.  Debris Growth Mitigation

Mere mitigation of future emission of debris into orbit. Under this category falls the policy of: •  “Avoid crowded orbit”: launching satellites in freer orbits and

trajectories •  “Passivation of Derelict Satellite”: removal of residual propellants

contained in the abandoned satellite to reduce the risk of in-orbit explosions generating additional debris

•  “Design Demise”: design of satellites and stages with components or material which decay while re-entering the atmosphere

• Elimination of some of the causes of debris growth •  Interruption of debris growth

• Growth trend slow-down but current number of debris is not reduced • Higher spacecraft/launchers design cost • Higher spacecraft/launchers industrial cost

B.  Self Removal Rocket stages or satellites that retain enough propellant can power themselves into a decaying orbit. Instead of using motors, an electrodynamic tether can be attached to the spacecraft on launch. At the end of its lifetime it is rolled out and slows down the spacecraft

•  Interruption of debris growth

• Growth trend slow-down but current number of debris is not reduced • Higher spacecraft/launchers design cost • Higher spacecraft/launchers industrial cost

C.  Active Debris Removal Rocket stages or satellites that retain enough propellant can power themselves into a decaying orbit. Instead of using rockets, an electrodynamic tether can be attached to the spacecraft on launch. At the end of its lifetime it is rolled out and slows down the spacecraft

•  Interruption of debris growth • Potential decrease of debris population (related to the number of removals) • Multiple players can finance the mission

• Possible design of an ad hoc mission increasing launch or mission cost

Even though no international treaty has been issued yet, a solution must soon be adopted in order to reverse this trend and control or reduce the space debris population. Possible solutions are:

“In order to stabilize the LEO population growth, minimum five objects per year need to be removed by active debris removal (ADR)” - ESA, 2011

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SUPPLY SIDE: ONERA “P2-ROTECT CONSORTIUM” PROFILE

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•  Onera (Office National d’Etudes et Recherches Aérospatiales) is the French national aerospace research center, with eight major facilities in France and about 2,000 employees, including 1,500 scientists, engineers and technicians. •  It is a public establishment with industrial and commercial operations, and carries out application-oriented research to support enhanced innovation

and competitiveness in the aerospace and defense sectors. •  Onera’s funding comes from two sources: -60%: contract research for industry and agencies -40%: annual subsidy from the French government •  Created by the French government in 1946, Onera is today organized in 16 scientific departments, grouped in four branches:

– Fluid Mechanics and Energetics – Physics – Materials and Structures – Information Processing and Systems

Overview and Business

•  Configuration: robotic device provided with a single mechanical arm with integrated foam ejection device and grappling mechanism •  Possible mission scenario: 4+1

– Contactless multi-removal through expanding foam for R/B NOT requiring CONTROLLED de-orbit (4 debris)

– Final capture by robotic device and direct reentry by OTV of the last (fifth) debris requiring CONTROLLED de-orbit

Technical Configuration of the solution Partners and Value Chain Play •  ONERA works on a consortium project “P²-ROTECT” (Prediction,

Protection & Reduction of Orbital Exposure to Collision Threats) with the following members:

•  The total budget for this project is of €3 Million (€ 2 Mln financed

through the European Commission FP 7) •  The main objective of the project is to make a high-accuracy assessment of the probability and severity of collisions and find solutions for the mitigation of the space debris population

Operations

Launch Service

Payload &

Sub/System Manufacturing

Control Ground

Segment

Application Ground

Segment

Equipment Manufacturin

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Satellite Manufacturing

ONERA OHB

TUBITAK TUBS

OHB TAS OHB

TAS TELINT

OHB

Illustrative

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SUPPLY SIDE: CNES PROFILE – 1ST TEAM

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•  CNES is the government agency, headquartered in Paris, responsible for shaping and implementing France’s space policy in Europe •  Founded in 1961, Its task is to invent the space systems of the future, bring space technologies to maturity and guarantee France’s independent

access to space •  With more-than 2,400 employees, CNES is helping to foster new technologies focusing on access to space, civil applications of space, sustainable

development, science and technology research, security and defense •  CNES facilities include:

–  The Launcher Directorate (DLA), that leads all developments for the Ariane program –  The Toulouse space centre –  Guiana space centre, dedicated to Europe’s launcher program

•  Publicly funded, its budget for 2012 was of €1.920 Billion


•  Configuration: cargo vehicle delivering kits to five objects of max 1.8 ton. Directly controlled reentry

•  Possible mission scenarios: – A: Minimalist kit: Cargo captures target, attaches

the kit to it, transfers to a lower orbit where it jettisons kit and target assembly after spin-up maneuver. Kit de-orbits target from drift orbit in one single boost

– B: Autonomous kit: Cargo transfers and phases with target orbit, so as to jettison the kit at vicinity of the target (a few km). Kit achieves rendezvous, inspection and capture then controlled reentry in 2 boosts or more

•  Alternatives: control of the debris vs. partial control of the debris during deorbiting

•  Launcher: Ariane 5 (still to be confirmed)

Technical Configuration of the solution Partners and Value Chain Play Team led by ASTRIUM. Contract value: €350,000 (455.000$). Duration: 18 months. Team members: •  Surrey Satellite Technology (SST) •  Lausanne Polytechnical School of Switzerland •  Bertin •  Oceaneering Space System (OSS)

Operations

Launch Service

Payload &


Control Ground

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Application Ground

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OSS LPSS

SST ASTRIUM BERTIN

ASTRIUM

ASTRIUM

Illustrative

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SUPPLY SIDE: CNES PROFILE – 2ND TEAM

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•  CNES is the government agency, headquartered in Paris, responsible for shaping and implementing France’s space policy in Europe •  Founded in 1961, Its task is to invent the space systems of the future, bring space technologies to maturity and guarantee France’s independent

access to space •  With more-than 2,400 employees, CNES is helping to foster new technologies focusing on access to space, civil applications of space, sustainable

development, science and technology research, security and defense •  CNES facilities include:

–  The Launcher Directorate (DLA), that leads all developments for the Ariane program –  The Toulouse space centre –  Guiana space centre, dedicated to Europe’s launcher program

•  Publicly funded, its budget for 2012 was of €1.920 Billion


•  Configuration: cargo vehicle delivering kits to five objects of max 1.8 ton. Directly controlled reentry

•  Possible mission scenarios: – A: Minimalist kit: Cargo captures target, attaches

the kit to it, transfers to a lower orbit where it jettisons kit and target assembly after spin-up maneuver. Kit de-orbits target from drift orbit in one single boost

– B: Autonomous kit: Cargo transfers and phases with target orbit, so as to jettison the kit at vicinity of the target (a few km). Kit achieves rendezvous, inspection and capture then controlled reentry in 2 boosts or more

•  Alternatives: control of the debris vs. partial control of the debris during deorbiting

•  Launcher: Ariane 5 (still to be confirmed)

Technical Configuration of the solution Partners and Value Chain Play Team led by Thales Alenia Space. Contract value: €350,000 (455.000$). Duration: 18 months. Team members: •  GMV •  MDA Corporation

Operations

Launch Service

Payload &


Control Ground

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Application Ground

Segment


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TAS GMV MDA

TAS TAS GMV

Illustrative

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SUPPLY SIDE: SWISS SPACE CENTER “CLEANSPACE ONE” PROFILE

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•  The Swiss Space Center, founded in 2003, belongs to Ecole Polytechnique Fédérale De Lausanne , •  The mission of the Swiss Space Center is to promote and develop space activities by involving Swiss education, science and industry. •  The key objectives of the Swiss Space Center are:

– To federate and promote R&D for space applications – To assist units and labs to prepare and realize space projects – To facilitate the construction of scientific and technological projects linked to space in collaboration with the Swiss industry and other R&D

centers – To focus R&D capacities in order to reach a critical mass and to become a privileged partner at Swiss and international levels – To valorize R&D developments performed in the space sector


•  Model: CleanSpace One, development cost 11Mln $ •  Configuration: nanosat based on their previous “CubeSat” model

[Dimensions 30cmx10cmx10cm] with ‘remover satellite or kit’ and a capture mechanisms

•  Possible mission scenarios: Three mission architectures available

– Picker: one removing spacecraft has to reach only one target. Once captured the chaser de-orbits both

–  Mothership: capture is done by a removing unit which is sacrificed with the debris. The last debris is de-orbited

by the mothership –  Shuttle: multiple-target version of the Picker. The removing spacecraft visits all the targets, de-orbiting them on by one

•  Launcher: due to the similar shape and dimension, PSLV can be chosen, as done for CubeSat

Technical Configuration of the solution Partners and Value Chain Play •  Swiss Space Centre collaborates with MIT for the development of the

whole project •  Satellite platforms are designed by students •  Collaboration with AIUB (Astronomical Institute Uni-Bern) for the

optical detection of debris •  Three collaborations in parallel for different the capture mechanisms

–  HES Geneve - Hautes écoles de Genève –  EPFL: Ecole Polytechnique Fédérale De Lausanne –  EMPA: Swiss Federal Laboratories for Materials Science

and Technology

Operations

Launch Service

Payload &


Control Ground

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Application Ground

Segment


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HES EPFL EMPA AIUB

EPFL

Illustrative

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SPACE DEBRIS REMOVAL SERVICE VALUE CHAIN PLAY

ONERA

CNES

STAR TECH

JAXA

SWISS SPACE

SPACE TECH

Launch Service

Payload & Sub/System Manufacturing

Control Ground

Segment

Application Ground

Segment

Equipment Manufacturing

Operations Satellite Manufacturing

Turn-key solution for ADR

Player partnering among each other in order to be able to offer an advance technological solution bundled with the launch service and the Ground segment control operations

Technology provider for ADR

Smaller player, usually University department or engineering firms, focusing on the development of a universal technologic solution able to be deployed with several type of launchers

Two main business model seem to arise from a preliminary market outlook: Turn-key solution for ADR business model and the Technology provider for ADR business model

Technology appears to be the main driver of the business model and the operators able to offer a turnkey solution will have a strategic advantage in entering the market. In the long term one of the key success factors of the business model will be the ability to integrate additional service in the Value Proposition

The technologic solution for the ADR is still the pivotal element of the emerging business models in this embryonic market

Illustrative

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Both public and private sector can benefit from a space debris removal service as this would allow cost-savings for satellite owners, due to a reduction of the number of potential collisions and reduction of project costs connected to insurance

DEMAND SIDE: STAKEHOLDERS MAPPING

EXPRESSED DEMAND: Institutional Market

Space Agencies have the mission to grant the safety and the cleanness of the space where they operate. They have stated the necessity to remove big debris through active removal solutions. Their studies confirm the necessity to de-orbit a minimum of 5 debris per year

LATENT DEMAND: Commercial Market

Satellite producers – Satellite operators - LSPs A cleaner, hence safer, space would reduce the chances of mission disruptions. These stakeholders would incur in lower costs caused by debris monitoring, complex trajectory design, possible mission loss, insurance costs. They might also benefit from a possible on-orbit satellite servicing (OOSS) offered by the service provider Insurance companies They would benefit from a reduction of the number of space missions failures of insured clients Businesses & Final Users TV, ICT, GPS service providers and their final users can be potentially damaged by an interruption of the service provision. Consequently they are final beneficiary of a removal service

The key of a successful business model, and the main factor influencing the future potential market dimension, is to stimulate the market players making the most possible latent demand arise

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1.  Space agencies 2.  Launch Service Providers 3.  Satellite operators 4.  Satellite manufacturers 5.  Government Customers 6.  Insurance companies 7.  Businesses 8.  Final users

Lower issue awareness

First Tier: all the player directly involved in the space activities Second Tier: operators not directly involved in any space activities, but which relies on some sort of space related infrastructure to perform their core activities

Public Operators

Private Operators

Illustrative

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Considering the technology aspects and possible solutions to deliver the Active Service Debris Removal •  Which are the most substantial difference between the currently available technologies? Is there any

technology emerging as a standard?

From a Demand point of view, some critical points need to be clarified, related to the typology of customers and the needs and desiderata of these potential customer •  Who will be the main customer of this service? Is it possible to envision a model where the final user of

this service would not only be player directly related to the space industry? •  Which will be the main desiderata and specification of the mission? And Which will be the main factor

driving demand: Mission specifications, Price, others, etc? •  Is it possible to envision additional services related to this Value Proposition? Satellite On-Orbit

Mantainance, etc.?

For what concern the Supply Side, several question emerge on the type of operators delivering the service and on the potential revenue model that could be applied •  Which will be the operators delivering the service: Industrial / Commercial Operators, PPP between

industrial operators and space agency? •  Which will be the main revenue model that this service could adopt: service level agreement with the

agency, a flat rate for each mission, agency financing through a flat tax for some class of operators directly or indirectly involved in space activities, etc?

•  How would the service be delivered: Dedicated launches for the Active Debris Removal missions, Secondary payload on commercial / Institutional launches, etc?

KEY QUESTION ABOUT A VIABLE BUSINESS MODEL When considering the Active Debris Removal Service three main tier of question arise, question related to the demand side and question related to the supply side

Which can be a profitable business model for a Space Player to gather the competence needed on the Value Chain and successfully implement a Value Proposition for an Active Debris Removal Service?

2015 2015 31

Paola Leoni - Senior Partner

Renate Emsbroek – PA

SWITZERLAND Rue du Rhône, 14

1204 Geneve, Switzerland [email protected]

T +41 (0) 22 819 19 37 F +41 (0) 22 819 19 00

www.corporate-advisors.eu

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LCA EXPERTISE IN THE GLOBAL SPACE INDUSTRYemits.sso.esa.int/emits/owa/loadfiles.showfile?p_file... · 2015-07-23 · 2015 9 LCA, with more than 15 years of experience in the Aerospace

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