SMALL SATELLITE MARKET ANALYSIS

Global Small Satellite market is estimated to be valued at US$ 12,491 Mn by 2030.

Small satellites are satellites of low mass and size that are usually under 500 kg. All such satellites can be referred to as ‘small’. However, different classifications are used to categorize these satellites based on mass. Small satellites reduce the huge economic cost of launch vehicle and cost associated with its construction. This has led to increasing participation of emerging economies and startups towards satellite launch for various purposes such as communication and security. Indian Space Research Organization (ISRO) launched new small satellite called Microsat. The growth is majorly attributed to development of advanced small satellites such as small sat express of HawkEye 360 Inc, GTOSat-Cubesat mission and Asteria small satellite of NASA that are capable of performing a number of operations such as earth observatory and communication.

Global Small Satellite Market: Regional Insights

North America held dominant position in the Global Small Satellite market in 2022, accounting for 33% share in terms of value, followed by Asia Pacific and Europe.

Figure 1: Global Small Satellite Market Share (%), By Region, 2022

To learn more about this report, request sample copy

North America held a dominant position in the global small satellite market in 2021 and is expected to maintain its dominance during the forecast period owing to the significant growth in the communication and telecom sector. Satellite communication technology offers data, voice, and video services in remote locations. It helps to track and monitor vehicles and vessels to offer efficient logistics support. Hence, the demand for small satellites in the communication and telecom sector in North America is driving the growth of the small satellite market.

Asia Pacific is expected to emerge as the fastest-growing region for the small satellite market in the forecast period. The countries like India, China, Japan, Australia and others are investing significantly in small satellite projects owing to the diverse applications supported by the small satellites such as military surveillance, tracking assets, weather predictions, monitoring natural disasters, and others. For instance, in October 2021, China launched its first solar exploration satellite into space. It was the 391st mission of the Long March Carrier launch series.

Global Small Satellite Market - Impact of Coronavirus (Covid-19) Pandemic

COVID-19 has made significant negative impact on manufacturing industry and the global supply chain. Furthermore, many small satellite launches and missions have been delayed or postponed due to travel restrictions, reduced operational capacity, and prioritization of essential services during the pandemic. This has affected the deployment and operation of small satellites, leading to potential revenue losses for satellite operators. Also the economic uncertainties caused by the pandemic have led to reduced funding and investment in the small satellite industry. Venture capital funding, government budgets, and private investments have been affected, leading to a slowdown in new projects and innovation in the market.

Global Small Satellite Market- Drivers:

Cost Efficiency of the Small Satellites

Small satellites offer a cost-effective alternative to traditional larger satellites. They are typically less expensive to manufacture, launch, and operate. This cost efficiency attracts a wider range of users, including government agencies, commercial companies, and academic institutions, who can now access space-based capabilities at a lower cost. In March 2022, NASA launched its new next-generation satellite named National Oceanic and Atmospheric Administration (NOAA). The satellite will provide weather and hazardous environment conditions in western hemisphere.

Technological Advancements

Rapid advancements in miniaturization, electronics, and materials have enabled the development of smaller and more capable satellites. This has led to increased functionality and improved performance of small satellites, expanding their applications in various sectors such as Earth observation, communication, weather monitoring, and scientific research. In April 2022, Northrop Grumman Corporation, an American multinational company in aerospace and defense technology expanded its satellite manufacturing facility in Gilbert, Arizona. This expansion will double the site production capability to meet the backlog orders of the satellite.

Global Small Satellite Market- Opportunities:                  

Earth Observation and Remote Sensing

Small satellites provide valuable data for Earth observation and remote sensing applications. They can capture high-resolution imagery, monitor environmental changes, track weather patterns, and support disaster management. This data is utilized by industries such as agriculture, forestry, urban planning, and environmental monitoring to make informed decisions and improve resource management. In Nov, 2020, The Department of Physical Geography and Ecosystem Science at Lund University published a Research report on Remote Sensing and Earth Observation. It states that the meteorological satellites are positioned at an altitude of approximately 36,000 km above the equator, distinguishing them from other meteorological and Earth resource satellites that orbit the Earth at an altitude of around 800 km. The imaging capabilities of these satellites vary significantly, with certain satellites capturing frequent images of Earth but with lower spatial detail, while others acquire infrequent images but with remarkably high spatial resolution, surpassing even one-meter precision in certain instances.

Remote Sensing and Weather Forecasting

Small satellites equipped with remote sensing instruments can collect data on weather patterns, atmospheric conditions, and climate variables. This information is vital for accurate weather forecasting, climate modeling, and disaster management. Private companies and government agencies can use the small satellites for these purposes. For Instance, On July 2021, GeoOptics a weather data provider and a manufacturer of instruments which is used to observe the atmosphere of earth’s surface and subsurface. The company has announced upgrading of their CICERO constellation of satellites to measure the earths evolving atmosphere.

Global Small Satellites market was valued at US$ 3,900 Mn in 2022 and is forecast to reach a value of US$ 12,491 Mn by 2030, exhibiting CAGR of 15.7% between 2023 and 2030.

Global Small Satellite Market- Trends:

Increasing Launch Capacity

The availability of dedicated small satellite launch services and rideshare options has expanded significantly. Several companies are developing small satellite launchers, and established launch providers are offering rideshare opportunities on larger rockets. This increased launch capacity enables more frequent and cost-effective access to space for small satellite operators. For Instance, On February 10, 2023 the Small Satellite Launch Vehicle (SSLV) designed and developed by the ISRO has successfully launched their second developmental launch these SSLV has launch capacity upto 500Kg satellites which can result into low cost access to space and flexibility in carrying multiple small satellites at once.    

Miniaturization and Advanced Technology

There is a strong emphasis on miniaturization in the small satellite industry. Advances in miniaturized components, including sensors, cameras, communication systems, and propulsion systems, have allowed for the development of highly capable small satellites. Smaller satellites also benefit from reduced manufacturing and launch costs. For Instance, on May 2021, IBM which is a multination technology company announced that they have developed a smallest yet most powerful microchip which is 2 nanometer in size.   

Global Small Satellite Market- Restraints:

Limited Payload Capacity and Capabilities

Small satellites have some limitations in terms of payload capacity and capabilities compared to larger satellites. Due to their smaller size and weight restrictions, they may have limited power, communication bandwidth, and payload capacity for advanced instruments. This can restrict their ability to carry out certain missions or provide high-resolution data, limiting their market potential in certain applications. For Instance, According to report published in 2022, by Science Direct which is a science reports publisher, that the satellite carries a payload which is used to fulfill the mission. Like in earth observation mission payload includes different types of cameras like, multispectral, hyperspectral and others but some other missions needs radio communication systems and batteries to run them. In this kinds of payloads small satellites can carry limited amount of payload.

Regulatory and Spectrum Constraints

The regulatory environment for small satellites can pose challenges. Licensing processes, spectrum allocation, and compliance with international regulations can be complex and time-consuming. Regulatory constraints can delay mission timelines and increase operational costs, particularly for companies operating across multiple jurisdictions or offering global services. For Instance, According to Small Satellite Regulation in 2020 by U.S. Federal Communications Commission (FCC). The rules requires the operators to provide basic legal and technical information of the satellite they are going to launch in the orbit on basis of this information FCC determines whether the satellite is eligible or not.   

Figure 2: Global Small Satellite Market Share (%), By Application Type Segment, 2022

To learn more about this report, request sample copy

Global Small Satellite Market- Segmentation:

Global Small Satellites market report is segmented into type and Application and by fuel type.

By Satellite Size: Minisatellite, Microsatellite, Nanosatellite, Picosatellite, Femtosatellite

By Application Type: Earth Observation, Telecommunication, Scientific Research, Technology Demonstration

By End User: Civil, Defense, Commercial, Government

Global Small Satellite Market: Key Developments

Major market players are focusing on product launches in order to enhance their product portfolio. For instance, on May 5, 2023, AIC, a defense contractor based in the United States, announced its collaboration with GomSpace, a European manufacturer, with the aim of jointly developing small satellites specifically designed for utilization by U.S. government agencies, commercial enterprises, and academic institutions.

On March 6, 2023, NewSpace India Ltd (NSIL), the commercial subsidiary of the Indian Space Research Organization (ISRO), has outlined its intention to increase its annual mission capacity through the utilization of its Small Satellite Launch Vehicle (SSLV). According to Radhakrishnan Durairaj, the Chairman and Managing Director of NSIL, said that they have constructed three SSLV rockets to date. The positive outcome of the rocket launch earlier this year has prompted NSIL to proactively engage with potential commercial clients in order to secure satellite launch contracts.

In September, 2022, NASA announced that they have been looking for the potential offers to review and to give feedback on for the planned program where NASA is going to acquire a smallsat data products and services under the Earth observation data from commercial small satellites program.

In November 2022, NASA has entered into the agreement with the GeoOptics which is a weather data provider, for their radio occultation satellite data products.

Global Small Satellite Market: Key Companies Insights

Global Small Satellites market is highly competitive, owing to rising launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the Global Small Satellites market are Major companies operating in the global Small Satellite market are: Harris Corporation Airbus Defense and Space, Boeing, Geooptics Inc., Lockheed Martin Corporation, Millennium Space Systems Inc., Northrop Grumman Corporation, OHB AG, OneWeb Ltd, Planet Labs Inc., Sierra Nevada Corporation, Singapore Technologies Engineering Limited, Space Exploration Technologies Corp. (Space X), Surrey Satellite Technology Ltd., and Thales Alenia Space.

*Definition: Small satellites, also known as smallsats or nanosatellites, are miniature spacecraft designed to perform various functions in space. These satellites are characterized by their smaller size, lower mass, and simplified designs compared to traditional large satellites. While there is no universally accepted definition for small satellites, they generally fall within a certain range of dimensions and mass.