According to the new research report published by The Insight Partners on "Small Satellite Market Forecast to 2028 - COVID-19 Impact and Global Analysis," the market is expected to grow at a CAGR of 24.7% from 2022 to 2028 to reach US$ 11,778.83 million by 2028.
Various government authorities and companies across the world have invested in the small satellite market owing to the increasing need for small satellites to maintain national security, capture data regarding areas damaged by earthquakes or floods, and monitor suspicious ships, as well as for applications such as earth observation, communication and navigation, and scientific research. In July 2021, Japan government announced that they are supporting the development of a small satellite constellation. Under the satellite constellation project, the government announced that they would support the companies for quick construction and domestic production of small satellites. In November 2021, Fleet Space Technologies raised US$ 26 million in funds to expand the nanosatellite IoT connectivity fleet. Also, in April 2022, the German parliament announced that it would invest US$ 10.51 million ( 10 million) in small satellite initiatives. Such investments and initiatives for the development of small satellites from governments are driving the small satellite market growth.
Swarm Technologies, Thales SA, Airbus SAS, L3Harris Technologies Inc, and Sierra Nevada Corporation are among the leading small satellite market players profiled in the report. These small satellite market vendors have a well-established customer base along with diversified product offerings for customers. Further, these players have a large consolidated market share across the global small satellite market. These companies are acquiring smaller vendors and capturing contracts from various end user customers from emerging countries worldwide.
The small satellite market players offer a wide range of satellites such as pico satellites, nanosatellites, and microsatellites. The increasing demand for satellite-based service offerings from commercial and military sectors is further influencing the demand for small satellites. A few of the major players operating in the global small satellite market are Northrop Grumman Corporation, L3Harris Technologies Inc., Thales Group, Millennium Space Systems Inc. (a Boeing Company), Space Exploration Technologies Corp. (SpaceX), and Surrey Satellite Technology Ltd.
Although a majority of small satellite manufacturers continued their operations during the COVID-19 pandemic, many start-ups in the small satellite market witnessed a decline in their business growth and operations due to several challenges, including delays in satellite launch projects and product deliveries owing to supply chain challenges and minimal investments in the small satellite sector, in the wake of pandemic. Further, the growth in the development of nanosatellites with the help of investments across the small satellite industry for future constellation launch projects is boosting the business growth of small satellite ecosystem vendors. The small satellite market growth is mainly due to the increase in demand for small satellite components such as sensors, transmitters, imaging devices, transponders, antennas, and automatic identification systems.
The small satellite market is segmented into type, payload, application, and vertical. Based on type, the small satellite market is bifurcated into nanosatellite (1 to 10 kg) and microsatellite (10 to 150 kg). By payload, the small satellite market is segmented into automatic identification system (AIS), transmitter, imaging devices, and others. In terms of application, the small satellite market is further segmented into earth observation, communication and navigation, scientific research. From vertical point of reference, the small satellite market is segmented into government, military, and commercial.
Key Findings of Study:
The small satellite market size is expected to witness significant double-digit growth during the forecast period owing to the increase in production of micro, nano, and pico satellites across the world for different satellite launch projects such as OneWeb and StarLink. The deployment of small satellites for swarm or constellation projects is another major factor catalyzing the production of small satellites for the future deployments.
A majority of nanosatellite and microsatellite manufacturing companies are based in North America, whereas Europe and Asia Pacific have been operating with a comparatively lower number of small satellite manufacturing players. Surrey Satellite Technology Ltd, a UK-based small satellite manufacturing company, has been collaboratively working on different regional projects to fulfill the demand of customers and remain competitive in the market while expanding its presence across different regions. Further, many small satellite manufacturers are collaboratively working with different end users across different regions in long-term contracts to provide them with reliable small satellite solutions. For instance, Airbus has been working with OneWeb to provide the company with the remaining number of small satellites that are to be launched for its OneWeb satellite constellation. Such projects are encouraging different market vendors to collaborate with multiple end users, which is contributing to the growth of the small satellite market size.
Many vendors involved in the small satellite market were able to continue their operations during the COVID-19 pandemic without severe financial losses. A majority of established small satellite manufacturers have witnessed growth in operating revenue; however, many small satellite start-ups have witnessed a downfall in operating revenue due to several challenges such as supply chain issues, launch delays, and delayed contracts and funding for different small satellite projects.
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