SmallSat Market to See Double-Digit Growth Over Five Years
India-based Stratview Research has released a new research report forecasting that the small satellite (SmallSat) market will see double-digit growth over the next five years.
The report looks at the small satellite market by type, technology development, operator type and region. This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today's small satellites market realities and future market possibilities for the forecast period of 2021 to 2026. After a continuous interest in the space electronics market, the report segments and analyzes the market in detail to provide a broad view of the market. The vital data and information provided in the report can play a crucial role for the market participants as well as investors in the identification of "low-hanging fruit" available in the market as well as formulate growth strategies.
Miniaturized satellites having a wet mass of under 500kg (1,100 pounds) are considered under the small satellite category. The number of small satellites launched in the past few years has surged substantially owing to its low cost, easier launch vehicle integration, and technological developments. SpaceX's robust plan of launching about 12,000 satellites in the Starlink constellation, of which half of them are targeted to be launched by end of 2024, is signaling a highly optimistic near-term outlook for the industry, especially of small satellite ones.
The SmallSat market plunged in 2016 mainly due to launch failures. It further dropped slightly in 2018 when compared to 2017, owing to the decline in the number of small satellite launches. However, the market witnessed a robust pace in 2020 especially due to the launch of the Starlink internet satellite by SpaceX. The COVID-19 outbreak had a negligible impact on the small satellites market due to the longer project timelines for launching and establishing services. However, the temporary halt of satellite production lines, postponement of launches, and limited availability of funding led to some turbulence amid the pandemic.
Based on the type, the small satellite market is segmented as minisatellite, microsatellite, nanosatellite, and picosatellite. Minisatellite is expected to remain the largest and the fastest-growing segment of the market during the forecast period. Minisatellites are satellites weighing between 201-500 kg (441-1,100 pounds). These satellites are simpler and use similar technologies as larger satellites. SpaceX is the leading player in the minisatellite sector and is primarily employing these satellites for communication and broadband internet services.
Based on the application type, the market is segmented as earth observation, technology development, communications, and scientific. Communication is expected to remain the largest segment of the SmallSat market during the forecast period. Rising demand for high-speed internet services coupled with growing digitalization across various verticals is augmenting the demand for smallsats, especially for communication purposes.
In terms of regions, North America is projected to remain the largest market for small satellites in the foreseeable future. The US is the pioneer in the smallsats market. In 2020, small satellite launches in the US grew six-fold from that of 2019-level, mainly driven by SpaceX's Starlink constellation. Leading players, such as Planet Labs and SpaceX, are vertically integrated, having a stronghold from raw material procurement to the provision of internet services.
Asia-Pacific is likely to recoup at an impressive rate during the forecast period. The strong growth of the region is mainly attributable to the growing emphasis on the production and launch of smallsats to cater to the need for broadband connectivity solutions, military support, and weather forecasting. China is the leading contributor in the APAC region in the wake of strong expenditure in space exploration and defense activities.
(Source: Stratview Research news release. Image from file)