New Private Entrants in Space Industry and Strong Backing from Government for Space Commercialization to grow Small Satellite Market

Advancement in space and technological fields have propelled the satellite manufacturing companies to develop more compact and efficient satellites. With growing application of small satellites in earth observation, IoT and remote sensing or communication has disrupted the space economy for better. With number of connected devices expected to cross 22 Bn mark in coming years, space-based IoT is one of the promising business segments offered by small satellites.

Moreover, new initiatives from global universities & countries and with emergence of entrepreneurs who realized the market potential of smallsats have further drives the global small satellite market in 2020. In addition, strong backing from investors like SoftBank, Virgin Group, Qualcomm, AirBus and Bharti Group who are trusting in the potential of small satellite business offers in the near future is expected to further influenced the market in near future.

Technological advancement of flat panel antennas (FPA) which promises simpler, more reliable multi-satellite solution with enhanced mobility and connectivity is major breakthrough for the companies operating in telecom segment. Besides, pay-per-use business model of satellite-as-a-service along with fast growth in cloud and deep learning algorithms for improved downlink data transmission efficiency will further grow the market during the forecast period.

Satellite-aided Broadband Connectivity to Ensure Dominance of Satellite Communication in Application Segment

Based on application, earth observation small satellite captured over 40% of share in 2020. However, with the announcement of satellite constellation in lower earth orbit (LEO) for global data and internet connectivity which are targeting businesses in IoT and communication is expected to register the highest CAGR during the forecast period. Projects such as Starlink, Kuiper and EutelSat’s ELO IoT network is further expected to drive the market in coming decade.

Asia Pacific is expected to register the highest Market Share

Currently, Asia Pacific is trailing behind North America and Europe. However, small satellite market in region has high potential. The market is majorly driven by China, Japan and India. Nearly half of the demand for small satellite is from government missions for civilian use. Other half of the market share is from commercial use for earth observation and satellite communication. With the entering of major players in market such as ISRO, JAXA and with space ambitions of emerging economies of Asia Pacific, the region is expected to be leading during forecast period. Moreover, Asian universities such as NTU Singapore partnering with Japan’s Kyutech to build and launch their small satellites into orbit. Also, India’s StudSat and China’s BNU-1 are built by respective national universities have further increases the aspiration of Asia Pacific to grab the major share of the small satellite market.

New Technological Development is Keeping the Market Competitive

Major players profiled in the small satellite market include Space Exploration Technologies Corp., ISRO, Blue Origin, Boeing, OneWeb, AirBus S.A.S., Sierra Nevada Corporation, Planet Labs Inc., Lockheed Martin Corporation, Arianespace and Thales Group. These companies are adopting strategies such as acquiring small players in market and new technology in launching. For instance, in August 2020, Boeing announced the acquisition of Millennium Space Systems, a provider of small satellite solutions. With this acquisition Boeing has increased its capability with its portfolio and provide customer with advanced small satellite technologies. Furthermore, in March 2021, Lockheed Martin Corporation announced its new technology in launching of small satellites which will allow small satellites to change their mission in orbit. Named as “SmartSat”, this software defined satellite architecture will provide resiliency and flexibility as per mission needs and technology with higher processing power in space.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Small Satellite market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Small Satellite market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Small Satellite market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Small Satellite market?
• Which is the largest regional market for Small Satellite market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Small Satellite market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Small Satellite market worldwide?