Global Small Satellite Market to Reach $9.75 Billion by 2027
The global small satellite market size is expected to reach $9.75 billion, registering a CAGR of 18.99% by 2027, according to a new report. Satellites are launched into various orbits like geostationary earth orbit (GEO), middle earth orbit (MEO), and lower earth orbit (LEO).
Depending on the deployment purpose, satellites are designed and developed with different payload capacities and sizes. Satellites are utilized for specific purposes like communication, navigation, earth observation, etc. Fortune Business Insights has presented this information in an upcoming report titled, “Small Satellite Market, 2020-2027”. The market size stood at $3.07 billion in 2019.
According to the report, the compact satellite market is gaining immense popularity for several reasons. For instance, an increasing number of space research missions are expected to boost the small satellite market growth significantly. Reportedly, around 389 small satellites were launched in 2019.
The global health crisis has shriveled the growth of several industries and markets, including the compact satellite market. The economies which were flourishing are now facing an unprecedented crisis. The dynamics of sectors have changed drastically due to lockdowns, curfews, and social distancing norms. Delayed production and launch missions are hampering the market growth. Disruptions in supply chains, production lines, operations, and existing contracts are stagnating the market growth. It is uncertain to say how long the situation may persist this way. Nonetheless, our research report’s in-depth analysis will help you gain an exhaustive understanding of this niche market.
On the basis of its type, the market trifurcates into nano satellite, mini satellite, and micro satellite. Based on components, the market segments into structures, payloads, electric power systems, solar panel and antenna systems, propulsion systems, etc. On the basis of its application, the market fragments into earth observation, navigation, technology development, communication, etc. On the basis of its end-users, the market divides into military, civil, government, and commercial. Geographically, the market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World.
Small satellites have short developmental cycles, require small development teams, and also incur lesser costs in deployment. These advantages are expected to boost the market growth significantly. The increasing use of small satellites for earth observation and artificial intelligence integration on compact satellites are expected to be major growth drivers in the forthcoming years. The escalating worldwide use of CubeSats by defense organizations for communication and monitoring is likely to augment the market growth. The Internet of Things (IoT) plays a crucial role in satellite connectivity.
The surging incorporation of IoT with small satellites is also anticipated to be a major growth driver in the forthcoming years. The introduction of the 5G service is also expected to boost the market growth due to faster data transmission speeds and reduced latency. However, government regulations and norms are expected to hinder market growth. For instance, there are five United Nations Treaties on an international level for outer space. The five treaties include Rescue Agreement, Outer Space Treaty, Liability Convention, Moon Agreement, and Registration Convention.
(Source: Fortune Business Insights news release. Image from file)