The small satellite market is an integral part of any economy for the development of infrastructure for commercial companies, government agencies, telecom, and space industry. It is an artificial object which is intentionally placed into the orbit. This object is called as artificial satellite and it acts as cell towers in the sky which transmits data from one point on the earth to another. They enhance missions which last for more than 15 years in the vacuum of the space at extreme temperature and radiations. Satellites vary based on their frequency, orbit, and missions. They are manufactured for different purposes such as telecommunication, navigation, military, space science, remote sensing, and others.
The Small Satellite Market is Segmented by Type (Minisatellite, Microsatellite, Nanosatellite, and Others), Application (Earth Observation & Remote Sensing, Satellite Communication, Science & Exploration, Mapping & Navigation, Space Observation, and Others), and End User (Commercial, Academic, Government & Military, and Others). The report covers global opportunity analysis and industry forecasts from 2021 to 2030.
The global small satellite market size was valued at USD 3.2 Billion in 2020 and is projected to reach USD 13.7 Billion by 2030 growing at a Compound Annual Growth Rate (CAGR) of 16.4%. Key drivers of the small satellite market include the rising demand for compact satellites due to their low launch, high computing capability, and lower development cycle.
Further, the growing need for high-resolution imaging services around the globe and increasing demand for more satellite data is expected to provide lucrative opportunities for the growth of the small satellite market. On the other hand lack of dedicated launch vehicles and payload, accommodation is expected to hamper market growth but growing demand from the commercial sector will increase the growth of the market during the forecast period.
Rising Demand for Compact Satellites
Small satellites offer a range of benefits to manufacturers from lower development cycle, cost-effective, less weight, size, and the ability to do remote sensing, complex computing activities in communication, commercial, and space research. Moreover, microsatellites and nanosatellites are the types of small satellites that have low launch costs, can develop and deploy around an orbit in less than 8 months than a traditional satellite which takes 5 to 15 years to develop, and settle. Due to their cheaper development costs and advanced computing capabilities, the demand for small satellites is rising among manufacturers. Therefore increasing demand due to decreased cost and development time of small satellites will drive the growth of the small satellite market during the forecast period.
Need for high-resolution imaging services and rising demand for more satellite data
Companies are launching constellations of small satellites including nano and microsatellites for space exploration, defense, mapping, observation, and telecommunication services for high-speed space-based internet connectivity across the globe. These satellites have the capability to record high-definition video and images for monitoring forest cover, agriculture, marine industry, transportation, etc. In addition to it, the growing need for earth observation services for the detection of climate change, weather patterns, and proper management of land and water resources is also facilitating the need for high-resolution imagery. Thus the need for high-resolution videos and images is only going to rise rapidly in the future further augmenting the growth of the small satellite market during the forecast period.
Lack of launch vehicle, payload accommodation, and growing demand from the commercial sector
Small satellites have their own set of restrictions as they lack proper dedicated launch vehicles of their own. Further, due to their small size and volume several key scientific types of equipment, additional propellant, and payload capacity is restrained. They also lack proper power generation due to a lack of propulsion systems for orbit maneuvering. These factors will restrict the market growth. On the other hand, owing to their low-cost feature small satellites have found widescale adoption in commercial organizations for broadband internet, satellite TV, and other services. As they are lightweight and made with reusable hardware components leading to immense processing power the adoption rate has been large scale in many organizations. Therefore the rapid deployment of small satellite services by commercial organizations is expected to fuel the growth of the satellite market during the forecast period.
Major Factors Driving the Growth of Small Satellite market are:
The primary driving factor supporting the growth of the small satellite market during the forecasted period is an increase in satellite manufacturers’ attention on the creation of compact satellites due to the decreased cost and development time of small satellites.
In addition to it, ride sharing launch programs have boosted the demand for small satellites. These programs provide more access to space exploration, have the ability to send multiple satellites into higher orbits and reduce launch costs. The time taken to deploy is also decreased as small satellites can easily fit into ride sharing payloads along with other objects. On the other hand the cost of manufacturing is reduced as the need for bulky and expensive propulsion systems are eliminated as the constellation of satellites can directly go to higher orbits. Moreover these satellites are made using reusable low cost hardware and technology.
Furthermore, small satellites allow for a wide range of scientific investigations and technology demonstrations to be carried out in orbit with relative ease. This in turn is expected to further drive the growth of the small satellite market.
Trends Influencing The Growth Of Small Satellite Market:
An increase in demand for compact satellites is expected to drive the growth of the small satellite market. Small satellites manufactured save a lot of money. This helps to remove barriers to reaching and exploring space, resulting in a spike in tiny satellite popularity since their beginnings. Furthermore, depending on the requirements, a small satellite could be manufactured and launched into orbit for less money than regular satellite missions. Aside from the weight and size advantages, the main benefit of small satellites is the short time it takes to create them. A traditional or large satellite takes 5 to 15 years to create and install in orbit, whereas a CubeSat may discover a need in less than 8 months and position itself in the desired orbit.
An increase in demand for high-resolution imaging services globally is expected to further propel the growth of the small satellite market. High-resolution cameras capable of capturing video at a rate of 25 frames per second are built into small satellites. The video data and images from this satellite will be used to monitor forestry, agriculture, urban growth, and marine transport. Monitoring agricultural fields, detecting climatic changes, disaster mitigation, meteorology, and a variety of other services are all covered by Earth observation services. The US government is currently the largest buyer of satellite imagery. As a result, most smallsat companies, both domestic and international, see the US government as a reliable long-term customer with which to begin.
Commercial organizations’ increased focus on the deployment of advanced satellite services presents an opportunity for the small satellite market to grow. Small satellites have been used to provide cutting-edge services such as broadband internet, satellite TV, and other services in commercial organizations thanks to satellite manufacturers’ intense focus on lowering the cost of small satellites. Small satellites can be constructed using reusable and low-cost hardware and technology. Small satellites do not require a specialized launch vehicle like regular satellites because they are compact and lightweight, lowering launch costs by up to 40%. Because of the miniaturization of components and software, established private companies and SMEs have begun to invest in small satellites.
Small Satellite Market Share Analysis:
Based on region, North America held the largest market share during the forecast period. North America is followed by Asia-Pacific, Europe, and LAMEA. The growth of the small satellite market in North America has been aided by an increase in the adoption of launch services in telecommunications, defense, and space exploration, among other industries. In 2020, the United States dominated the small satellite market share, and it is expected to continue to grow at a rapid pace during the forecast period.
However, Asia Pacific is expected to exhibit the highest CAGR of 17.2% during 2020-2027.
Based on application, the earth observation & remote sensing segment held the largest market share in 2020 due to an increase in the use of small satellites by commercial and government space organizations for a variety of applications including urban planning, border mapping, infrastructure security, and homeland security.
Based on type, The minisatellite segment generated the most revenue in 2020, owing to an increase in global demand for high-speed internet connectivity and a rise in telecommunication companies’ deployment of satellites to extend their reach.
Based on end-user, the commercial segment will provide lucrative opportunities for growth in the small satellite market share during the forecast period due to growing commercial usage for enemy surveillance, navigation, weather forecasting, and internet services.
Small Satellite Market Report Coverage
|Market Size in 2020:||USD 3,251.9 Million|
|Forecast Period:||2021 to 2030|
|Forecast Period 2021 to 2030 CAGR:||16.4%|
|2030 Value Projection:||USD 13711.7 Million|
|No. of Pages:||335|
|Tables & Figures||141|
|Segments covered:||Type, Application, End-User Region|
Covid-19 Impact Analysis
- The Covid-19 Impact On The Small Satellite Market Is Unpredictable And The Growth Of The Market Is Expected To Remain Restricted Till The Second Quarter Of 2021.
- The Covid-19 Outbreak Forced Governments Across The Globe To Implement Strict Lockdowns And Made Social Distancing Mandatory To Contain The Spread Of The Virus. Consequently, Several Organizations Started Work From Home Programs As Safety Measures. This Led To A Sudden Decrease In Demand For Small Satellites Across The World.
- Moreover, Nationwide Lockdowns Disrupted The Supply-Chain As Several Manufacturing Facilities Across The Globe Had To Partially Or Fully Shut Down Their Operations.
- The Adverse Impacts Of The Covid-19 Pandemic Resulted In Huge Supply-Demand Issues For The Small Satellite Industry Globally.
Key Benefits For Stakeholders
- This Study Presents The Analytical Depiction Of The Global Small Satellite Market Analysis Along With The Current Trends And Future Estimations To Depict Imminent Investment Pockets.
- The Overall Small Satellite Market Opportunity Is Determined By Understanding Profitable Trends To Gain A Stronger Foothold.
- The Report Presents Information Related To The Key Drivers, Restraints, And Opportunities Of The Global Small Satellite Market With Detailed Impact Analysis.
- The Current Small Satellite Market Is Quantitatively Analyzed From 2020 To 2030 To Benchmark Financial Competency.
- Porter’s Five Forces Analysis Illustrates The Potency Of The Buyers And Suppliers In The Industry.
Key Market Segments
- By Application
- Earth Observation & Remote Sensing
- Satellite Communication
- Science & Exploration
- Mapping & Navigation
- Space Observation
- By Type
- By End User
- Government & Military
- By Region
- North America
- Rest Of Europe
- South Korea
- Rest Of Asia-Pacific
- Latin America
- Middle East
- North America
Major Market Players
- Airbus S.A.S.
- L3harris Technologies, Inc
- Lockheed Martin Corporation
- Northrop Grumman Corporation
- Planet Labs Inc.
- Sierra Nevada Corporation
- Thales Group
- The Aerospace Corporation
- The Boeing Company