The global small satellite market size is projected to grow from $2.8bn in 2020 to $7.1bn by 2025, at a CAGR of 20.5% from 2020 to 2025, according to a report by ResearchAndMarkets.
The market is driven by various factors, such as the growing demand for LEO-based services, demand for Earth observation imagery and analytics and increasing number of space exploration missions are the major drivers of the small satellite market.
The small satellite market includes major players Sierra Nevada Corporation (US), L3 Harris Technologies (US), Lockheed Martin Corporation (US), Northrop Grumman Corporation (US), and Airbus Defense and Space (Netherlands). These players have spread their business across various countries includes North America, Europe, Asia Pacific, Middle East & Africa, and South America.
Covid-19 has impacted their businesses as well. Industry experts believe that Covid-19 could affect small satellite production and services by 10% globally in 2020.
The growth of the small satellite market can be attributed to its wide use for Earth observation and broadband internet. Small satellites are used in constellation architecture for gathering scientific data and communication purposes.
Small satellites are used for in-orbit inspection purposes of larger satellites. These are also used as test carriers for newly developed components that are to be installed on a much critical satellite.
Earth observation and remote sensing is the fastest-growing segment of the Small Satellite market, by application. The growth of this segment can be attributed due to the compact nature of small satellites led to efficient Earth observation and remote sensing.
Due to their compactness, they are ideal for Earth observation and tracking of various weather-related phenomena such as hurricanes, lightning, and polar lights, or natural catastrophes as well as speculation of accidental disasters with relatively no delay in reporting time.
The commercial is the fastest-growing segment of the small satellite market. The growth of this segment can be attributed to an increased involvement of private players in the global space industry to drive the segment. Private companies can invest in small satellites as they are cheaper, faster to build, and can be launched for commercial purposes.
The geospatial technology using Earth-imaging small satellites for agriculture, education, intelligence navigation, mapping, and other uses has driven the commercial sector.
North America is projected to be the highest CAGR rate for the small satellite market during the forecast period. It is a leading region for the adoption of small satellites and provides great opportunities for the growth of the overall market.