According to the "Small Satellite Market, 2023-2029" report by Fortune Business Insights™, the global small satellite market size saw substantial growth, increasing from USD 4.90 billion in 2021 to USD 5.60 billion in 2022. It is projected to experience further expansion and reach a value of USD 12.02 billion by 2029, exhibiting an impressive Compound Annual Growth Rate (CAGR) of 11.53% during the forecast period.
The market's progress is attributed to two key factors: the rapid adoption of 3D printing technology for satellite manufacturing and the growing utilization of satellites across various sectors. These advancements are expected to play a crucial role in driving the market's growth in the coming years.
List of Key Players Profiled in the Report:
Airbus S.A.S (Netherlands)
The Boeing Company (U.S.)
Lockheed Martin Corporation (U.S.)
Northrop Grumman Corporation (U.S.)
Sierra Nevada Corporation (U.S.)
ST Engineering (Singapore)
Thales Group (France)
SPACEX (U.S.)
L3Harris Technologies, Inc. (U.S.)
COVID-19 Impact:
Production Delays and Postponed Satellite Launch Hindered Market Growth
The market was negatively affected during the COVID-19 pandemic due to production delays and postponed satellite launches. The rapid spike in COVID-19 cases led to the adoption of stringent lockdown norms, thereby restricting satellite manufacturing. For example, the International Astronautical Federation (IAF) delayed the International Astronautical Congress space conference in April 2020. Airbus S.A.S stopped its production in Spain. Furthermore, the lack of manufacturing led to raw material shortages, resulting in production delays. These factors affected the market during the pandemic.
Browse Detailed Summary of Research Report with TOC:
https://www.fortunebusinessinsights.com/industry-reports/small-satellite-market-101917
Russia-Ukraine War Impact
Economic Sanctions Imposed by the U.S. and its Allies on the Russian Federation Negatively Affected the Industry
The economic sanctions imposed by the U.S. and its allies on the Russian Federation are expected to affect this industry’s growth. Furthermore, the war negatively affected the global industries leading to import and export flow disruptions. The dominance of Russia and Roscosmos, a quasi-civilian space agency in the commercial space, affected alternative launch service providers in Japan, India, Europe, and the U.S. These factors negatively affected the market during the war.
Report Coverage
The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market's key players.
Drivers and Restraints
Robust Internet of Things Adoption in the Manufacturing Sector to Foster Market Progress
Small satellites are objects developed and designed for earth observation, communication, navigation, and other purposes. Satellites are launched into several orbits that comprise Geostationary Earth Orbit (GEO), Medium Earth Orbit (MEO), and Low Earth Orbit (LEO) with the help of rockets. The robust Internet of Things (IoT) adoption in the manufacturing sector is expected to enhance satellite adoption. Furthermore, the rising adoption of satellites for transport, consumers, oil & gas, and mining is likely to fuel industry growth. These factors may drive the small satellite market growth.
However, launch vehicle shortage is expected to hinder the market growth.
Regional Insights
Rising Research & Development Investments in NASA to Fuel Growth in North America
North America is expected to dominate the small satellite market share due to rising research and development investments in NASA. The market size in North America stood at USD 2.53 billion in 2021 and is expected to gain a huge portion of the global market share in the coming years. Furthermore, the adoption of tri-band antenna and SKYWAN technology is expected to foster the industry’s progress. For example, CubeSat announced a launch initiative from its international space station for the 109th CubeSat in July 2020.
In Europe, launching IoT services and the internet for numerous applications is expected to enhance the product adoption. Furthermore, the rising focus on executing and developing low-cost missions is expected to propel market growth.
In Asia Pacific, strong demand from India, Japan, and China is expected to foster industry growth. Furthermore, the development of plans by ISRO is expected to foster the industry’s progress.
Competitive Landscape
Prominent Players Announce Novel Facilities to Expand Market Reach
Prominent companies operating in the market announce novel facilities to expand their market reach. For example, Boeing announced its novel high-throughput test facility, integration, and small satellite production in March 2022. This development was meant to enhance productivity and fasten delivery times. The production facility shall be powered by Millennium Space Systems, a Boeing subsidiary, and shall be housed in the largest satellite production facility globally. This strategy may expand the company’s market reach worldwide. Further, companies devise automated production techniques, research and development, mergers, acquisitions, and collaborations to enhance the market growth.
Key Industry Development
May 2022: Thales Alenia Space entered into a joint venture with Leonardo and Thales to complete tasks associated with the final integration of Orion’s European Service Module 4 essential systems.