Microsatellite and Nanosatellite Market to Reach $8.69 Billion by 2030
The global microsatellite and nanosatellite market was valued at $2.23 billion in 2020, and is expected to reach $8.69 billion by 2030, growing at a CAGR of 14.9% from 2021 to 2030.
According to a new report from Allied Market Research, an increase in the production and launch of CubeSats as well as smaller size and weight microsatellite and nanosatellite has boosted the growth of the global microsatellite and nanosatellite market. However, stringent government regulations and limitations of small satellites regarding payload accommodation hinder the market growth. On the contrary, a rise in demand for satellite data and increasing demand for microsatellites and nanosatellites from the commercial sector are anticipated to pave the way for multiple opportunities in the industry.
The commercial segment contributed to more than three-fourths of the global microsatellite and nanosatellite market revenue in 2020, and is projected to maintain the lion's share from 2021 to 2030. This is due to the high demand for nanosatellites and microsatellites for various commercial applications. Moreover, this segment would realize the fastest CAGR of 15.6% by the end of 2030. The report also includes analysis of civil, government, and military segments.
The earth observation segment accounted for more than half of the global nanosatellite and microsatellite market share in 2020, and is anticipated to retain its dominance throughout the forecast period. This is owing to the high demand for satellite data for earth observation applications across the globe. The communications segment, however, would showcase the fastest CAGR of 16.7% by 2030. Increasing demand for faster and secure communications throughout the world drives the growth of the segment. The report also includes analysis of space science, technology development, and technology demonstration segments.
North America captured the major share of the market in 2020, contributing to more than half of the global nanosatellite and microsatellite market. This is due to the key players in the region taking recourse to innovative developments, an increase in R&D activities, and the increased adoption of innovative technologies in order to develop long-lasting, reliable, and efficient nanosatellite and microsatellites. Simultaneously, the Asia-Pacific region would see the fastest CAGR of 16.4% throughout the estimated period. This is attributed to the rise in the production and launch of nanosatellites and microsatellites across several Asian nations such as India, China, Japan, and South Korea.
(Source: Allied Market Research news release. Image from file)