CubeSat Market to Reach $870.7 Million by 2032
CubeSat Market to Reach $870.7 Million by 2032
Commercial Application Demand Seen as Principal Driver
The CubeSat market, valued at $205 million in 2022, is estimated to reach $870.7 million by 2032, growing at a CAGR of 16.2% from 2023 to 2032, according to a new report from Allied Market Research.
The market is driven by factors such as owing to rise in demand for CubeSats from several commercial applications. Shift in solar energy to cut carbon emissions creates lucrative growth opportunities for the market. However, competing energy sources are projected to hinder the market growth during the forecast period.
Based on size, the 1U to 3U segment held the highest market share in 2022, accounting for more than half of the global CubeSat market revenue and is estimated to maintain its leadership status during the forecast period. Numerous 3U CubeSats have been launched since 2003 owing to the added advantages of 3U over smaller and even larger CubeSats. In 2020, Spire and Planet Labs launched several 3U CubeSats for Earth Observation and GPS radio occultation weather data missions.
The earth observation and traffic monitoring segment held the highest market share in 2022, accounting for slightly more than half of the global CubeSat market and is estimated to maintain its leadership status during the forecast period. However, the science technology and education segment are projected to manifest the highest CAGR of 16.82% from 2023 to 2033.
The commercial segment held the highest market share in 2023, accounting for half of the global CubeSat market and is estimated to maintain its leadership status during the forecast period. The adoption of CubeSats in the commercial sector has augmented significantly over the past years, due to the reduction of heavy satellite components, standardization of satellite parts, and reduced costs. In this sector, small satellites are used in agriculture, forestry, energy, media & entertainment, civil engineering, and archaeology.
Based on region, North America held the highest market share in terms of revenue in 2022, accounting for more than half of the global market revenue and is likely to dominate the market during the forecast period. Rise in concern for satellite-based surveillance offers lucrative growth opportunities for the market growth in North America. For instance, in October 2020, TriSept Corp. announced a launch services contract with the Space and Missile Defense Command (SMDC) of the U.S. Army.