Small Satellite Market Size, Share & COVID-19 Impact Analysis, By Type (Mini, Micro, Nano), By Component (Structure, Payload, Electric Power System, Solar Panel & Antenna Systems, Propulsion Systems, and others), By Application (Communication, Earth Observation, Navigation, Technology Development, and Others), By End User (Commercial, Military, Civil, and Government), and Regional Forecast, 2021-2028

The global small satellite market size was USD 4.08 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with small satellites witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 10.27% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 4.70 billion in 2021 to USD 10.75 billion in 2028 at a CAGR of 12.55% during the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

A satellite is an object designed and developed for specific applications such as navigation, communication, earth observation, and others. The satellites that weigh under 500 kg (1100 lb) are categorized as small satellites. The growth of the market can be attributed to the growing number of space exploration activities worldwide. For instance, in 2019, 389 small satellites were launched for various space exploration missions.

Delay in Satellite Launch Programs amid COVID-19 to Restrain Growth

The ongoing COVID-19 pandemic has severely affected the global space industry. Due to the rapid spread of the coronavirus, several businesses in this market faced unprecedented challenges due to stagnancy in production and delayed satellite programs. The Guiana Space Centre suspended Soyuz launch activities, which were planned in mid-march. Samara Space Centre, the manufacturer of Soyuz rockets, stagnated the production process due to this pandemic that would hamper the launch programs. The company has built 52 Soyuz rockets, but 12 rockets are waiting for launch from the spaceport. The U.S. Space Force delayed the launch of Falcon 9, a GPS satellite, by two months due to COVID-19 impact. Thus, disruptions in production lines, supply chains, and existing contracts majorly impacted the space industry.

LATEST TRENDS

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Introduction of Concepts Such as Robotics and AI Expected to Lead to Wider Product Adoption

The integration of artificial intelligence (AI) has brought about major transformations in the small satellite industry. Telemetry-based automatic diagnostics technology is used to identify future problems. The information collected through space helps to analyze space and download specific data required for the mission. In addition to this, AI-enabled automatic learning systems and intelligent ground stations optimized the control of CubeSats constellations. Increased data processing, transmission capacity, and laser communication systems will transform the space sector in the forthcoming years.

DRIVING FACTORS

Surging Integration of Internet of Things (IoT) in Manufacturing Sector to Boost Market Growth

Internet of Things (IoT) provides connectivity in industrial applications for production and machine control through satellites. IoT-based devices exchange real-time data with the processing units that improve production and machine control operations. In the manufacturing process, IoT devices use satellite connectivity for data transmission between IoT systems and components. Thus, satellite connectivity plays a role in the manufacturing sector and process automation, which will further propel the growth of the market.

 Introduction of 5G Network to Augment Market Growth

The emergence of the 5G service enhanced user experience as it offers new applications and services with higher speeds. It improves the reliability and performance of a communication network. 5G reduces the latency compared to 4G and significantly increases the data rates. Satellite communication and high-altitude platform systems (HAPS) delivered high data rates to terrestrial wireless networks in urban and suburban areas. Furthermore, 5G would drive the evolution of IoT and smart cities by deploying power sensors in rural areas and cities. It has numerous applications in healthcare, energy, power sector, smart grids, and others that drive the GLOBAL small satellite market growth during the forecast period.

RESTRAINING FACTORS

Stringent Government Laws Associated with Space Launch Programs to Hamper Growth

The space industry faces several restrictions from international and national government agencies. As per the International Space Law, every state must register its space objects with the international registry to notify and track space objects. There are five United Nations Treaties on outer space on an international level. They are the Outer Space Treaty, Rescue Agreement, Liability Convention, Registration Convention, and Moon Agreement. Furthermore, the activities carried out by non-government entities require authorization and supervision from the state.

SEGMENTATION

By Type Analysis

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Nanosatellite Segment to Dominate Owing to Growing R&D Activities

Based on type, the market has been segmented into mini-satellite, microsatellite, and nanosatellite.

The nano-satellite segment held the highest share of the market in 2020. The growth of this segment is attributable to increasing research and development activities and the rising number of space laboratories for upcoming missions to asteroids, the moon, and mars.

The mini-satellite segment is estimated to show significant growth during the forecast period due to increasing use for earth observation.

The microsatellite segment will experience moderate growth owing to the rising use of CubeSat for space research and scientific applications.

By Component Analysis

Structure Segment to Grow at Faster Pace Owing to Rising Number of Satellites

Based on components, the market is divided into the structure, payload, electric power system, solar panel & antenna, propulsion systems, and others.

The structure segment is anticipated to witness significant growth during the forecast period. The growth is attributed to the increasing demand for small satellite services and networks for civil missions and military missions. The growing demand for satellites is due to the extension of satellite services in remote locations that drive segmental growth.

The payload segment is projected to showcase significant growth during the forecast period due to increased product use in numerous applications such as navigation, communication, earth observation, weather monitoring, and others. Electric power systems are used to power the internal satellite systems.

The solar panel and antenna segment will witness moderate growth as these are used to power the satellite subsystems that include navigation systems, communication systems, and others.

By Application Analysis

Increasing Use of Satellite for Communication and Navigation Purposes to Propel Market Growth

Based on the application, the market is classified into communication, navigation, earth observation, technology development, and others.

The communication segment is predicted to rise at the highest CAGR. The growth is attributed to the increasing adoption of communication antennas in the government and commercial sectors. Satellites provide different communication services such as data communication, broadcasting, and telecommunication.

Satellite plays a vital role in providing cable and networking programming to laptops, cell phones, and personal digital assistants.

The earth observation segment is anticipated to show significant growth as it is used for weather monitoring and water monitoring.

The navigation segment will witness remarkable growth owing to the increasing use of GPS for maps, airplane navigation, and assistance in farming.

By End-User Analysis

Rising Implementation of Satellites to Drive Growth of Commercial and Military Segments

Based on the end-user, the market is segmented into civil, commercial, military, and government.

The commercial segment held the highest market share in 2020 and is anticipated to showcase considerable growth during the forecast period. This is owing to the increasing number of internet services and mobile users. The increasing implementation of satellites of enemy surveillance drives the growth of the market. Satellites are used in numerous commercial applications, including navigation, communication, and weather forecasting.

The military segment is expected to experience significant growth due to the rising use of satellites in surveillance missions.

The government segment is anticipated to witness remarkable growth due to increasing satellite development programs from government space agencies.

REGIONAL INSIGHTS

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North America stood at USD 2.11 billion in 2020. At Present, the region holds the highest share in the small satellite market. The increasing research and development activities by NASA and the growing military spending for surveillance missions will drive the market across the region. For instance, the adoption of SKYWAN technology by NASA and triband antennas allows real-time transmission, which is the best transport per application.

• In July 2020, the CubeSat launch initiative deployed 109^th CubeSat from the international space station.

Asia-Pacific is likely to showcase a remarkable growth rate in the market due to the rising demand for satellites in India, China, and Japan.

• In 2020-2021, the Indian Space Research Organization (ISRO) plans to launch several satellites that include three communication satellites, ten earth observation satellites, three space science satellites, and two navigational satellites.

Europe is expected to exhibit a considerable growth rate during the forecast period due to internet-based services and IoT for numerous applications.

The Rest of the World is expected to showcase significant growth during the forecast period due to increasing internet-based services in the Middle East and African countries.

KEY INDUSTRY PLAYERS

Key Players to Focus on Business Expansion Through New Product Launches & Contract Signing

Satellite manufacturers are majorly focusing on business expansion through contracts with space companies and government agencies. Airbus S.A.S is one of the key major players in the market. The company focuses on the innovation of new technology and strategic agreements to grow its business. Below are some of the developments made by the company.

• In February 2020, Airbus S.A.S. unveiled a new portfolio of earth observation satellites that includes S250 optical and S250 radar.


• In 2020, Airbus developed Prometheus, a next-generation software-defined radio (SDR) payload launched on Faraday-1 CubeSat from New Zealand.

LIST OF KEY COMPANIES PROFILED:

• Sierra Nevada Corporation (The U.S.)


• ST Engineering (Singapore)


• Airbus S.A.S (The Netherlands)


• Northrop Grumman Corporation (The U.S.)


• Space Exploration Technologies Corp. (SpaceX) (The U.S.)


• The Boeing Company (The U.S.)


• Thales Group (France)


• Lockheed Martin Corporation (The U.S.)


• L3Harris Technologies Inc. (The U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2020 – NASA awarded a combined contract worth USD 16.7 million to launch different small satellites such as nanosatellites, CubeSats, and others. The companies that have been awarded this contract are Relativity Space, Firefly Black, and Astra Space.


• April 2020 – Lockheed Martin Corporation was awarded a contract worth USD 5.8 million by Defense Advanced Research Projects Agency (the U.S.) to deploy a constellation of 20 small satellites to demonstrate that a low Earth orbit system can provide global high-speed communications.


• February 2020 – Astrocast signed a contract with Spaceflight to launch ten additional IoT nanosatellites. The launch of the satellites is expected to take place in late 2021. In total, Spaceflight is now set to launch 30 of the 100 satellites that will complete the Astrocast IoT Nanosatellite Network.


• The IoT Nanosatellite Network of 100 CubeSats is explicitly designed to transmit and receive low bandwidth data from IoT devices anywhere globally.

REPORT COVERAGE

An Infographic Representation of Small Satellite Market

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The market report provides a detailed analysis of the market and focuses on key aspects such as key players, product type, component, application, and end-user of small satellites. Moreover, the research report offers insights into small satellite market trends, competitive landscape, market competition, product pricing, market status, and key industry developments. In addition to the factors mentioned above, the market report encompasses several direct and indirect factors that have contributed to the sizing of the global market over recent years.

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