Small satellites have emerged as low-cost alternatives for performing a variety of Earth observation and communication applications over the past decade. Advancements in small satellite technology have enabled greater access to space by reducing launch costs and complexity. Companies are now developing fleets of small satellites to offer broadband Internet connectivity and imagery services on a global scale. For example, SpaceX’s Starlink constellation involves the deployment of thousands of small satellites in low Earth orbit to deliver high-speed Internet connectivity worldwide. OneWeb is another venture deploying hundreds of small satellites to provide global connectivity services. The increasing availability of low-cost launch services like SpaceX’s reusable Falcon rockets is fueling the growth of constellations of small satellites.
The global small satellite market is estimated to be valued at US$ 4.51 Bn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The flourishing small satellite market is primarily being driven by space enterprises revolutionizing the global telecommunications infrastructure through large constellations of small satellites. Both SpaceX and OneWeb aim to complete multi-billion dollar small satellite constellations to offer global broadband connectivity competitively. As referenced in the heading, these mega-constellations are enabling universal access to affordable Internet, which is expected to connect tens of billions of unconnected devices worldwide in the coming decade. Another key driver is the increased demand for Earth observation data from industries like agriculture, energy, and insurance. Imaging small satellites can revisit locations more frequently and capture clearer data compared to larger satellites. The radical reduction in launch costs due to innovative new launch vehicles like SpaceX’s Falcon 9 rocket is profoundly impacting the small satellite industry by stimulating greater investment and faster deployment of these small satellite networks.
Segment Analysis
The small satellite market can be segmented into nano, micro and mini satellites. Nano satellites dominating the market with over 45% share as they are extremely cost effective and easier to deploy in large numbers on a single launch. They are highly popular for earth observation, technology demonstration and academic research applications. Micro satellites hold the second largest share owing to their increased payload capacity and capability to carry out higher resolution earth imaging.
PEST Analysis
Political: Government space agencies and regulations encourage private sector participation in space through public private partnerships and funding support for research. This boosts small satellite development.
Economic: Falling launch costs and miniaturization of technologies has made small satellites affordable. This has led to increased commercial applications in telecommunication, earth observation etc driving market growth.
Social: Growing use of space technology in daily lives for phone/GPS services increases engagement. Demand is rising for space-based broadband internet to expand access in remote areas.
Technological: Advancements in electronics, battery technology and 3D printing has enabled design of smaller, efficient satellites. Usage of commercial off the shelf components reduces development time and costs.
Key Takeaways
The Global Small Satellite Market Size is expected to witness high growth over the forecast period supported by increasing space missions for earth observation, connectivity and technology demonstration.
North America dominates currently due to presence of major companies and government space agencies such as NASA in the region. The Asia Pacific region is emerging as the fastest growing market with countries like China, India ramping up domestic satellite building capabilities and private sector investment.
Key players operating in the small satellite market are One10 LLC, 360 Destination Group, CWT Meetings & Events, ITA Group, ConferenceDirect, Experient, Inc., Eventbrite, Cvent Inc, Reed Exhibitions, Informa plc, Emerald Expositions, BCD Meetings and Events, ATPI Ltd., Interpublic Group, Ruckus Marketing, LLC, Hubb, Freeman, Maritz, BI Worldwide, Conference Care Ltd. Leading players are focusing on collaborations for shared access to infrastructure and to jointly offer end-to-end connectivity solutions using satellite constellations. They are also investing in research to develop even smaller, inexpensive satellites and reusable launch vehicles.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
