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The price of orbit: Hedonic estimates from the satellite launch market

Author

Listed:
  • Sebastien Rouillon

    (Department of Economics, University of Bordeaux)

  • Marc-Alexandre Senegas

    (Department of Economics, University of Bordeaux)

Abstract

We analyse the determinants of commercial satellite launch prices and the structure of the global launch market over 1996–2025 using a new database combining launch records, expert cost estimates, and regional industry revenue data. This approach provides more granular launch price estimates than previous studies. Econometric results show that payload mass and target altitude are the main determinants of launch prices, while real prices declined by 3.3% annually, reflecting technological progress. Market segmentation identifies three distinct service categories with differentiated price tiers, suggesting that competition is driven by provider specialisation across market segments rather than within a single global market.

Suggested Citation

  • Sebastien Rouillon & Marc-Alexandre Senegas, 2026. "The price of orbit: Hedonic estimates from the satellite launch market," Space Economics Working Papers 10-2026, Institute for Space Economics, revised Sep 2026.
    • Handle: RePEc:bhw:wpaper:10-2026
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    Keywords

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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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