The small satellite offers several advantages over traditional satellites such as low cost of development and launch, flexibility in operations, and short manufacturing schedules. These satellites assist diverse applications in agriculture, wildlife monitoring, commercial imagery, earth observation, and communication services.
The global Small Satellite Market is estimated to be valued at US$ 5,220.7 Mn in 2023 and is expected to exhibit a CAGR of 15.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing use of small satellites in communication services is one of the major trends fueling the growth of the small satellite market. Small satellites help improve internet connectivity and provide communication services globally. Leading companies are focusing on developing and launching small satellites to provide global connectivity through low earth orbit (LEO) satellite constellations. For instance, SpaceX has deployed over 2,000 small satellites of its Starlink broadband network to provide satellite internet services. Similarly, Amazon Kuiper plans to launch 3,236 small satellites to deliver high-speed, low-latency broadband through its Kuiper satellite network. The growing demand for satellite internet and expanding network coverage is expected to boost the adoption of small satellites for communications over the forecast period.
SWOT Analysis
Strength: Small satellites offer affordability and flexibility for small companies and research institutions due to their small size and relatively low cost of manufacturing. Weakness: Small satellites have smaller payloads and thus limited capabilities compared to traditional large satellites. Opportunity: Increasing need for earth observation services from industries like agriculture, oil & gas, and government organizations is driving the demand for small satellites. Threats: Failure of any small satellite mission can hamper the reputation of manufacturers in the market.
Key Takeaways
The global small satellite market is expected to witness high growth. The global Small Satellite Market is estimated to be valued at US$ 5,220.7 Mn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2024 to 2031.
North America currently dominates the market owing to presence of major satellite manufacturers in the US. The US government has undertaken various initiatives to encourage participation of private companies in space exploration which is positively impacting the small satellite industry. The Asia Pacific region is projected to grow at the fastest rate during the forecast period driven by increasing government and private investments in small satellite technologies, especially in China and India. Countries in the region see small satellites as critical for managing resources, disaster management, border security, and more. Ongoing small satellite programs by Chinese companies indicate their growing influence in this market.
Key players operating in the small satellite market are Harris Corp, Lockheed Martin, L3Harris, Airbus, and Space Exploration Technologies (SpaceX). These companies offer small satellites as well as associated services and components. For instance, SpaceX’s Starlink program aims to provide low-cost satellite internet access globally using small satellites in low earth orbit. The growing adoption of small satellites for purposes like earth observation, telecommunication, and research is expected to open new opportunities for these players.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
