Small Satellite Market Analysis

Small Satellite Market Analysis

Based on application, the earth observation application of small satellite market is projected to observe a growth rate of nearly 16% from 2032 in 2032. Small satellites including CubeSats and minisatellites are majorly being used for earth observation. They are equipped with hyperspectral sensors, high-resolution cameras, and remote sensing instruments that can offer valuable data for a range of earth observation applications. Small satellites have vast applications in earth observation such as agriculture, natural resource management, disaster management, climate monitoring, and urban planning. They have the ability to provide high-resolution imagery for mapping urban areas including transportation networks, infrastructure, and land use. This information can help policymakers and urban planners to make informed decisions about urban management & development. Small satellites also provide data regarding climate change including precipitation, temperature, and sea level rise.
 

Based on type, the minisatellite segment is dominating approximately 45% of the small satellite market share in 2022. Minisatellites are small satellites that give expanded access to space and in the field of scientific research. They are also referred to as small spacecraft that weigh between 100 and 500 kg. They have numerous advantages over other small and large satellites including reduced cost of new space missions and scientific & human exploration. Minisatellites are primarily being used for earth observation as they are equipped with high-resolution cameras and sensors that provide valuable data to be used in natural resource management, agriculture, and urban planning. They are also used for studying the earth’s atmosphere, climate, and oceans. They can provide broadband internet and communication services to underserved areas and remote areas. The wide application and greater operational efficiency of minisatellites are expected to fuel segment growth.
 

Based on mass, the CubeSat segment of small satellite market was valued at over USD 1.5 billion in 2022. It has been experiencing strong growth over the past few years and is anticipated to witness continued growth. CubeSat is a small satellite with a standardized form factor of 10x10x10 cm and a mass of up to 1.33 kg. This makes it easier to manufacture & launch than traditional satellites. The CubeSat segment is growing due to the increasing interest of governments and private companies in using small satellites for space missions and scientific research including studying the space weather, planetary exploration, and earth’s atmosphere. CubeSats are risk-tolerant & low-cost platforms used for conducting experiments and testing new technologies in space. The wide range of suitable features for various applications will boost segment growth.
 

North America region is dominating the small satellite market with 35% share in 2022. North America is one of the largest markets for small satellites. The region houses some leading small satellite manufacturers, ground station operators, and launch service providers with a highly developed space industry ecosystem. The U.S. government also plays a major role in the business development, with agencies, such as NASA and the U.S. Department of Defense, funding many small satellite missions and programs. These missions are oriented toward advancing scientific research in the country and improving national security.
 

The implementation of several initiatives and policies by the U.S. Government for supporting the small satellite industry is another factor propelling market growth. These initiatives include the establishment of the commercial remote sensing regulatory office, which monitors commercial remote sensing activities. Also, the small sat rideshare program offers opportunities for mall satellite companies to launch their payload on commercial and government rockets.