The accurate measurement of inter-satellite distances is fundamental to the successful operation of distributed spacecraft missions, facilitating diverse applications ranging from scientific exploration to navigation and communication. This study comprehensively overviews applications requiring inter-satellite tracking by analyzing 44 multi-spacecraft missions. These missions are divided into seven categories based on their use of inter-satellite distance measurements. Each category necessitates varying levels of accuracy, prompting the utilization of distinct tracking methods. The analysis reveals that missions near Earth typically rely on Global Navigation Satellite Systems measurements, achieving millimeter-level accuracy, while lunar missions opt for radio ranging for centimeter-level accuracy. Inter-satellite Laser Ranging Interferometry emerges as the preferred method for missions demanding exceptionally high accuracy (nanometer to picometer range), such as those dedicated to gravitational wave detection and gravimetry. Notably, the analysis identifies a burgeoning trend towards the adoption of Inter-satellite Laser Transponder Ranging, capable of achieving sub-millimeter accuracy. Furthermore, this work proposes a novel concept: integrating inter-satellite ranging with Laser Communication Terminal (LCTs), either to substitute for existing tracking methods or to enhance measurement accuracy within established frameworks. However, its full potential rests upon the successful adaptation of existing LCTs for ranging functionality without compromising data rates. Future research will play a critical role in quantifying achievable ranging performance by characterizing systematic errors within LCTs.

The need for higher data rates has transitioned the satellites towards laser communication, opening up new opportunities for inter-satellite distance measurements. The stringent requirements for space missions like gravimetry, formation flying, collision avoidance, and precise orbit determination require highly precise distance knowledge, which can be offered by lasers. The past and present missions depend on radio ranging and laser interferometers to achieve up to centimeter-order and picometer-order precision, respectively. However, these methods either require additional hardware or interfere with the communication data rates as the power available is shared between communication and ranging operations. Therefore, this research explores the potential of laser communication terminals in measuring the inter-satellite distance. Numerical simulations are performed to analyze the effect of the precision of inter-satellite distance measurements on atmospheric density estimation. The analysis shows that such range measurements can only improve atmospheric density estimates if the uncertainty in the drag coefficient can be reduced below the current range of 3-5%.