The $2.31 billion small satellites market is slated to reach beyond $8.9 billion in revenues by the end of 2028.
Attributed to surging government funding, increasing support from private entities, soaring satellite adoption for R&D purposes, and increasing demand for LEO services, Future Market Insights expects the global market for smallsats to observe robust growth at an estimated CAGR of 13.5 percent over a 10 year period from 2018 to 2028.
During the assessment period, the smallsats market is anticipated to encounter challenges such as space debris problems, insufficiency of skilled resources as well as multiple regulatory hurdles; however, advances in space technology and strong governmental support will collectively help the market overcome these restraints and thrive at a stellar pace across the globe.
By satellite type, nano-satellites are presumed to remain the largest as well as fastest growing segment throughout the forecast period. With around 41 percent revenue share of the market attained in 2017, the nano-satellites segment will continue to gain traction due to growing applications in cellular communication. Innovations in IoT technology has also been a significant factor impacting the demand for nano-satellites in a positive manner since the recent past. Up from $946.8 million achieved in 2017, this segment is expected to reach beyond $3,000 million by the close of 2028.
Within this 10 year period, nano-satellites segment will reportedly expand at a healthy CAGR of 14 percent. Other satellite type segments are also anticipated to see impressive growth, including mini-satellites, micro-satellites, and pico-satellites. While micro-satellites represent a substantial market value share of above 25 percent, mini-satellites segment will continue to hold a considerably large share of above 22 percent by value, over the forecast period. Future Market Insights records growing demand for mini-satellites for weather forecasting and R&D applications.
Among end-users, the defence sector is likely to represent the largest shareholding segment by 2028's end, whereas the commercial sector is anticipated to witness higher growth. The defence area has been generating substantial demand for smallsats, covering more than 4 percent market value share by 2017 end, whereas the consumption from commercial sector is slated to increase at a high rate and bring in above 31 percent share of the market value for commercial segment during the assessment period. As per the regional segmentation analysis, North America will remain the largest market share contributor through to 2028. Western Europe, and SEA and others of APAC will exhibit significant growth over the decade.
Some of the leading players in the global market for small satellites include Orbital ATK, Inc., Ball Corporation, Airbus S.A.S., Boeing, Lockheed Martin Corporation, Israel Aerospace Industries Ltd., QinetiQ, ISIS- Innovative Solutions In Space B.V., OHB SE, Surrey Satellite Technology Ltd., and Planet Labs Inc. While Airbus, Boeing, Lockheed Martin Corporation have been identified to be the predominant players, it has been found that the winning strategies of these three giants will provide a major thrust to the global smallsats market in near future.
These insights are based on a report on Small Satellite Market by Future Market Insights.