Global Nanosatellite and Microsatellite Market, Sector / Industry Report & Analysis, 2025 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Global Nanosatellite and Microsatellite Market


The global Nanosatellite and Microsatellite market size is projected to reach US$ 6.36 billion by 2026, from US$ 1.91 billion in 2020, at a CAGR of 22.2% during 2021-2026. Growing demand for miniaturized satellites across various industry verticals is expected to provide an impetus to the market.

Launch of small satellites via heavy vehicles has proved to be quite challenging in recent years, resulting in increased demand for development of small launch vehicles. Traditionally, small satellites were launched as an additional payload with larger satellites, which gave rise to launch and cost constraints. Need for small launch vehicles that can overcome these cost constraints culminated in the development of Small Satellite Launch Vehicles (SSLVs).

SSLVs hold the potential to introduce differentiation in the cost of launching nanosatellites and microsatellites. Initially, micro-launchers were used to perform experiments. However, low entry barriers, coupled with private and institutional funding, are allowing manufacturers to aggressively develop SSLVs and capture a potential share in the nanosatellite market.

Small satellites are rigorously witnessing continuous technological advancements owing to their simple and faster construction and design requirements. The low cost of these satellites has broadened the range of possible space missions across verticals that are currently unserved. Moreover, simplified designing and development allow integration of latest technologies, such as Artificial Intelligence (AI) and robotics, in small satellites in order to enhance their capabilities and mitigate some of the compromises made to reduce system mass.

Furthermore, these satellites use Very High Frequency (VHF), Ultra High Frequency (UHF), and visible transmission technologies to increase signal frequency and thereby increase transfer speeds. The use of these frequencies helps in acquisition of large amounts of data, which in turn reduces continuous monitoring from the ground. This simplifies and reduces the cost of ground systems.

However, nanosatellites and microsatellites are more prone to failures and do not have any major impact in terms of providing any novel and market-redefining capabilities. Nevertheless, Machine Learning (ML) intelligence on various space development platforms is contributing toward providing efficient communications, improving spacecraft reliability, providing more efficient computing capabilities, and enhancing coordination within the overall development of a mission.

Market Segmentation, Outlook & Viewpoint: Global Nanosatellite and Microsatellite Market

Mass Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

  
Nanosatellites
  
Microsatellites

Application Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

  
Communication & Navigation
  
Earth Observation/Remote Sensing
  
Scientific Research
  
Technology and Academic Training

End-use Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

  
Government
  
Defence & Security
  
Commercial
  
Civil

Key Players, Recent Developments & Regional Insights: Global Nanosatellite and Microsatellite Market

The earth observation/remote sensing segment accounted for a revenue share of more than 45.0% in the nanosatellite and microsatellite market in 2018 as several governments continue to invest in earth observation and meteorology projects. For instance, according to the U.S. Group on Earth Observations, the U.S. government allocates more than USD 3 billion per annum for civil earth observations and space-related missions.
Growing importance of large amounts of data collected from Earth observation satellites caters to different application areas such as urban planning, agriculture, water resources, mineral prospecting, forestry, disaster management, and ocean resources. Rising need for earth observation data in geo-information products and increasingly central role of Big Data reinforces the development potential of commercial activities, propelling the growth of smallsats in earth observation applications.

The industry has witnessed wide adoption of smallsats in communication and navigation owing to increased popularity of advanced technologies such as Over-The-Top (OTT) services and Internet Protocol Television (IPTV). Moreover, miniaturized communication satellites are rigorously designed for delivering high performance and deployment on high altitude platforms. These payloads can deliver fixed, mobile, and broadcast services for regional area coverage.

Demand for small satellites is expected to grow over the forecast period as both individual customers and enterprise customers continue to subscribe to communication services. The subsequent growth of the communication sector is prompting enterprises as well as governments to develop and launch small satellites to cater to communication applications. Governments are particularly allocating funds to undertake research and development on satellite projects. For instance, the Government of India in its Union Budget 2018-19 allocated approximately USD 89 billion to the Department of Space for undertaking various space-related projects. The department is expected to spend the majority of this budget on researching and developing innovative launch vehicles and spacecraft.

End-use Insights

The commercial sector dominated the global market in 2018. This can be attributed to increase in communication, broadcasting, and navigation activities. According to the Satellite Industry Association (SIA), the broadband revenues from satellite were under 6% of satellite services revenues in 2015. However, the association has predicted that by 2024, the broadband revenues from satellites will rise at a CAGR of 29%.

The defense and security segment captured a revenue share of over 25.0% in 2018 as small satellites play a significant role in defense space architecture to enhance operational support to military forces. Need for expanding the lifespan of military use satellites is driving demand for nanosatellites and microsatellites in the military sector. Unlike large satellites, smaller ones provide an opportunity to experiment and train, which has led to increased inclination for their adoption. These satellites provide the capability to disaggregate military satellite functions and communications between other satellites, which surges its capacity and makes them more secure.

Regional Insights

North America dominated the global market with a revenue share of over 50% in 2018, owing to increasing investments in space-related activities. For instance, every year NASA allocates a specific budget for space-related activities including science, aeronautics, space technology, exploration, and other space operations. Moreover, rise in regional demand for small satellites from different end-use sectors such as research organizations, military and defense, and telecommunications has provided an impetus to the regional market. For instance, in December 2018, NASA launched a series of new CubeSats in collaboration with Rocket Lab, under the Venture Class Launch Services (VCLS) contract.

Asia Pacific is anticipated to emerge as the fastest-growing regional market as economies in the region, such as Japan and India, continue to aggressively launch small satellites for communication and navigation purposes. Japan is developing strategies to tap the demand for compact satellites and aircraft to combat the need for miniaturization. Apart from these, smaller countries such as South Korea and Singapore have entered the smallsat production market with an aim to launch their own satellites into orbits irrespective of the scale of implementation.
Nanosatellite and Microsatellite Market Share Insights

Key industry players include Innovative Solutions In Space, Sierra Nevada Corporation,  , GomSpace Group AB, and SpaceQuest Ltd. Nanosatellites and microsatellites have witnessed substantial growth in terms of spacecraft development, built, and launches over the past decade.

Development of the CubeSat concept has enabled companies to find a different role in satellite design rather than traditional roles, which was initially a costly affair. Moreover, large system integrators have dominated the space industry for a long time, but advances in the small satellite industry have allowed smaller companies such as Innovative Solutions in Space (ISIS); GomSpace Group AB; and Tyvank Inc. to emerge and have a more established role at the forefront of the small satellite industry.

Key Insights Covered: Global Nanosatellite and Microsatellite Market

1. North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Nanosatellite and Microsatellite industry.
2. Global major manufacturers" operating situation (sales, revenue, growth rate and gross margin) of Nanosatellite and Microsatellite industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Nanosatellite and Microsatellite industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Nanosatellite and Microsatellite industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Nanosatellite and Microsatellite industry.

Research Methodology: Global Nanosatellite and Microsatellite Market

  
Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
  
Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
  
Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among other