According to Future Market Insights (FMI), between 2021 and 2031, the market for small satellites will expand at a healthy CAGR of 18.5 percent.
The analysis predicts that the market will be worth more than US$ 3.2 billion by the end of 2021. According to FMI, opportunities for the market for small satellites to grow have been created by the emergence of artificial intelligence, the internet of things, and 5G. The development of these technologies is now essential for boosting economic competitiveness, which drives market expansion.
Key Takeaways: Small Satellite Market
- By type, the nanosatellite segment is anticipated to account for the leading share in the global market for small satellites during the forecast period. However, the microsatellite segment is estimated to grow at a robust CAGR of 19.5% through 2031.
- By end users, the adoption of small satellites in the commercial sector is anticipated to increase at a CAGR of 17.5% between 2021 and 2031, while the civil segment is currently dominating the market.
- North America is expected to lead the global small satellite market followed by Europe in 2021.
- The market in Japan is expected to progress at a CAGR of around 16% through 2031.
- In the U.K., sales are expected to increase at a CAGR of close to 13% over the next ten years.
Impact Assessment of COVID-19 on the Small Satellite Market
The demand for small satellites significantly decreased as a result of the rapid spread of COVID-19 in many regions, including Europe, the US, and Asia-Pacific. Due to manufacturing shutdowns, delayed deliveries, equipment shortages, and staff shortages at manufacturing facilities, there was a corresponding decrease in revenues for various service providers and suppliers throughout the small satellite market.
For example, the COvid-19 impact caused the U.S. Space Force to postpone the launch of Falcon 9, a GPS satellite, by two months. However, it is anticipated that by 2022, the demand for small satellites will have fully recovered.
Increasing Demand for High-Resolution Images
The global demand for small satellites is significantly increasing. As of January 2021, there were more than 2800 nanosatellites launched into Earth’s orbit, according to data from nanosats. EU. Leading companies in the sector are putting constellations of nano- or microsatellites into orbit for uses like communication and earth observation.
A Memorandum of Understanding (MoU) was signed in January 2020 between the European Space Agency (ESA) and Sateliot, a nanosatellite and communications operator, to conduct research, develop, and deploy novel space-capable technologies, products, and services using 5G. The market for small satellites is anticipated to expand significantly during the forecast period as a result of these factors.
Small Satellite Outlook by Category
By End User:
- North America
- Latin America
- East Asia
- South Asia & Pacific
- the Middle East and Africa (MEA)