Market Overview:
Small satellites refer to satellites having mass typically between 1-500 kg. They have various applications including earth observation & remote sensing, scientific research & exploration, communication, technology demonstration and academics. Their affordability, reliability and flexibility make them an attractive alternative for serving commercial, civil and military demands.
Market key trends:
Rising demand for earth observation services is expected to augment growth of the small satellite market during the forecast period. Factors such as growing use of geospatial technologies in sectors such as agriculture, forestry and energy are projected to increase the adoption of small satellites for earth observation. Furthermore, small satellites are deployed for various applications such as climate change monitoring, disaster management, land use mapping and border monitoring. For instance, Planet Labs Inc. deploys daily revisit fleet of small satellites to capture global earth imagery which is used by various industries and governments. Such developments are favoring market growth.
Porter’s Analysis
Threat of new entrants: The high costs associated with R&D, manufacturing, production, and launching makes it difficult for new players to enter the market.
Bargaining power of buyers: There are a limited number of spacecraft providers and buyers have few alternatives, giving more power to suppliers.
Bargaining power of suppliers: Key component suppliers like satellite hardware and launch providers have considerable influence over small satellite manufacturers.
Threat of new substitutes: No close substitutes currently exist for small satellites providing imaging, communication and other services.
Competitive rivalry: Intense competition exists among established players to gain market share through innovative offerings, collaborative agreements and lowering costs.
The global Small Satellite Market Size is estimated to be valued at US$ 4512.3 Bn in 2023 and is expected to exhibit a CAGR of 15.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
SWOT Analysis
Strengths: Growing demand for connectivity, earth observation and opportunity for technology advancement.
Weaknesses: High initial costs, risks of launch failures and dependency on launch providers.
Opportunities: Scope for expanding use cases such as 5G networks, agriculture monitoring and defense. Government initiatives to boost satellite industry.
Threats: Delays in projects, declining revenues during economic slowdowns and vulnerability to space debris.
Key Takeaways
The global Small Satellite Market is expected to witness high growth, exhibiting CAGR of 15% over the forecast period, due to increasing demand for broadband and mobile connectivity services worldwide. North America dominates currently due to major government space initiatives and presence of leading manufacturers in the US. Asia Pacific is expected to grow at fastest pace led by China, India with government backed programs and private sector investments.
Regional analysis: North America will continue to dominate the market during the forecast period owing to presence of major players and huge investments by US government in small satellite programs. China is expected grow at fastest pace in Asia Pacific region led by increasing investments in small satellite constellations for commercial applications as well as military uses.
Key players: Key players operating in the small satellite market are Harris Corporation Airbus Defense and Space, Boeing, Geooptics Inc., Lockheed Martin Corporation, Millennium Space Systems Inc., Northrop Grumman Corporation, OHB AG, OneWeb Ltd, Planet Labs Inc., Sierra Nevada Corporation, Singapore Technologies Engineering Limited, Space Exploration Technologies Corp. (Space X), Surrey Satellite Technology Ltd., and Thales Alenia Space.
