Small Satellite Market Could Generate $15.3bn Revenue by 20262nd Apr 2021
The small satellite market is rapidly developing. In 2018, it generated $3.4 billion in revenue, and by 2026, this figure is expected to reach $15.3 billion. According to the latest report published by Trends Market Research, this market’s share should grow by 20% in the next six years. What is it that ensures such overwhelming market growth?
Small Satellite Market Segmentation & Potential
The small satellite market is a broad term that encompasses many different segmentation criteria, such as:
- Satellite type (mini-, micro-, nano-, pico-, and femto satellites);
- Application (Earth observation, communication, research, imaging, technology development, situational awareness, etc.);
- End-user (civil, commercial, government, or defense);
- Region (North America, Europe, LAMEA, and Asia-Pacific).
Small satellite market growth will concern all satellite types and applications. Based on type criteria, nano-satellites have the strongest potential. To date, these devices are in a growing demand for earth observation.
Estimates for satellite application presuppose rapid growth in the military segment. There will also be a considerable increase in spacecraft responsible for navigation, broadband connectivity, and weather forecasting.
As to the most rapidly developing region, Asia-Pacific (APAC) should boom within the next six years. The main space powers in the APAC region are India, China, Japan, and South Korea. India and Japan are already actively launching spacecraft, and their combined number of launches is expected to grow.
The major factors that keep pushing the small satellite market forward are cost-effectiveness and increased applications for newly-built spacecraft. This is why lightweight rockets are in high demand today – they can launch small satellite payloads into requested orbits and do not call for enormous budgets. Besides, today’s space sector is no longer government-exclusive. Plenty of private companies, innovative startups, and even research institutions can now produce and launch satellites, contributing their share into the rapid space industry growth.
Today, key players in the international launch market include Lockheed Martin Corporation, Northrop Grumman, Sierra Nevada, Blue Canyon Technologies, OHB AG, Orbital ATK, Space Systems Loral, and many others. Furthermore, given that the small satellite market is becoming ever more affordable, we can also expect many new players in this rapidly growing niche.