Small Satellite Market

Small Satellite Market

Small Satellite Market: North America to Continue Market Dominance; Western Europe Slated for Robust Growth in the Years Ahead: Global Industry Analysis 2013 - 2017 and Opportunity Assessment 2018 - 2028

  • XPLREP2295

  • March, 2018

  • 252 Pages

  • Semiconductors

Global Small Satellite Market to Surge Past Valuation of US$ 8.9 Bn as Adoption Soars in Defense Sector

The global small satellite market is anticipated to proliferate at a healthy pace and surge past valuation of US$ 8.9 Bn by the end of the forecast period (2018 – 2028), according to a new market study by XploreMR. The growth of the market is mainly driven by soaring demand in earth observation services applications in numerous sectors such as agriculture, energy, civil engineering, oil & gas, and others.

Furthermore, small satellites are gaining remarkable traction in the defense sector for applications such as medium-resolution imagery, tactical communication, and geospace & atmospheric research. Besides, small satellites have a competitive advantage over conventional satellites, on the back of their compact size that requires lesser development and production time, which subsequently reduces the manufacturing and operations costs. Backed by the aforementioned factors, the global small satellite market is set to bestow an incremental opportunity of US$ 2.31 to market players during the forecast period.

Increased Government Expenditure Promises Healthy Adoption in Defense Sector

Some of the major growth drivers of the small satellite market include high expenditure by government and private organizations for the development of novel technologies and high demand for satellites in research and development purposes (R&D) in various sectors that mandate studying earth and other natural factors.

Furthermore, surging adoption of low-earth orbit services and medium earth orbit services, where small satellites are highly preferred, is also acting as a predominant growth attribute. However, the growth of the market is not free of hindrances. Issues such as space debris problems, lack of skilled working personnel, and multiple regulatory limitations continue to hold back the market from reaching its full potential, but. On a positive note, the emergence of advanced space technology and favorable government policies for space exploration activities will continue to bolster the adoption of small satellites in the years to come.

Nano-satellites Remain the Most Sought-out Satellit Type Backed by Low Mass

Nano-satellites are forecasted to remain the most sought-out small satellite types, holding the majority of market share in the global value through the forecast period. The high demand for nano-satellites is mainly attributed to its compact size and low weight, which enables the launch of multiple satellites for different applications in a single-vehicle launcher.

Based on the end-use the application, the defense sector is foreseen to drive the majority of revenue, backed by increasing investments by national governments across the world to safeguard their respective nation's defense standpoint. Small satellites are used in multiple defense applications such as tactical communication, and geospace & atmospheric research. On the other hand, the adoption of small satellites in the civil & commercial sector is expected to witness an uptick as numerous organizations extensively invest in R&D activities.

North America to Remain Focal Point of Global Growth

On the regional front, North America will reign supremacy over the global market, accounting for more than 55% of market value. Furthermore, the region is foreseen to register a stellar value CAGR of 13.1% through the forecast period and remain the leading regional market for small satellites.

The region's dominance is predominantly attributed to increasing collaborations with the US government, and the strong presence of major market players. Furthermore, increasing usage in procuring satellite images, burgeoning demand for surveillance applications in the defense sector, will complement the market growth. Backed by these factors, North America is anticipated to bestow a revenue opportunity of more than US$ 3.4 Bn during the forecast period.

Closely following North America, Western Europe is projected to create a total incremental $ opportunity of US$ 1 Bn by the end of the forecast period. On the other hand, Asia Pacific is anticipated to contribute to nearly half a billion dollars in sales, backed by increasing infrastructural development in emerging economies such as India and China.

Competitive Landscape of Small Satellite Market

Some of the major market players in the global small satellite market include The Boeing Company, Aerospace Corporation, Airbus Defense and Space, Lockheed Martin Corporation, and Thales Group.

Small satellites are becoming more attractive, as they enable missions that cannot be accomplished by large satellites, such as high temporal and spatial resolution by gathering data from multiple points, in-orbit inspection of large satellites, and space missions consisting of a large number of satellites forming constellations. Small satellites enable missions in navigation, communication, remote sensing, and scientific research for civilian, commercial, and military purposes. XploreMR in its newly published report assesses the global small satellites market over a 10 year forecast period – 2018-2028.

Report Overview

This report presents an analysis about the current trends and ongoing developments in the small satellite market. Small satellites are artificial satellites with lower weights and smaller sizes, and are becoming more attractive in recent years due to lower development costs and shorter lead times as compared to large satellites. In the past few years, space systems and technologies have become a crucial part of the economic, scientific, and security capabilities of countries across the world. Various government and private organizations in the world are now focused on capitalizing on space systems to improve operational effectiveness, and to enhance homeland security and digital communication capabilities.

Scope of the Report

The scope of this market study includes the manufacturing of small satellite. Satellite-related services in consumer and commercial domains such as satellite TV and cellular communication, launch vehicle services, and ground equipment have been excluded from the scope of this market study. The research methodology of the market study includes extensive primary and secondary research. Various surveys were conducted with small satellite manufacturers and industry experts to understand the value chain and critical driving factors of the small satellite market. Desk research was conducted to identify current market trends and ongoing developments in the market.

Market Segmentation

The market has been segmented in two broader categories: satellite type and end user. The satellite type segment is further segmented into mini-satellites, micro-satellites, nano-satellites, and pico-satellites. Among these, the nano-satellites segment is expected to grow at a relatively higher CAGR during the forecast period, owing to an increase in the demand for nano-satellites in various applications such as earth observation, research & development, and remote sensing. The nano-satellites segment is also expected to capture a market share of 43.0% during the forecast period. Among the end user segments, the commercial segment is expected to grow at a CAGR of 13.9% during the forecast period, as small satellites are now being increasingly used in several commercial applications such as air & maritime monitoring, communications, land use monitoring, agriculture monitoring, and disaster monitoring.

The decrease in the prices of launch services and the increasing need for surveillance in defense are some of the primary factors which are fuelling the growth of the small satellite market. North America is expected to hold more than 50% of the market share in 2018. One of the major reasons for the dominance of North America is that, most satellite manufacturers are based in the U.S., and are delivering small satellites to various public and private organizations across the globe. However, the SEA & others market in the APAC region is expected to create more potential growth opportunities for the small satellite market in the coming few years, owing to the increasing demand for small satellites in India and ASEAN countries.

The final section of the report focuses on the profiles of leading companies in the global marketplace for small satellites. The market study also presents some recommendations for market stockholders. In brief, these recommendations encourage consultation between small satellite manufacturers, for which technological advancements should be an agenda issue, and professional bodies in non-satellite manufacturing sectors, such as media & entertainment and telecommunication services. All stockholders in the small satellite industry should work in collaboration and exchange their resources in order to improve the quality of services that are being offered through small satellites.

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Small Satellite Market: North America to Continue Market Dominance; Western Europe Slated for Robust Growth in the Years Ahead: Global Industry Analysis 2013 - 2017 and Opportunity Assessment 2018 - 2028
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