Market Overview:
Small satellites or smallsats are miniaturized satellites with low production costs and weight ranging from 1 to 500 kilograms. They are used for various applications including earth observation, communications, technology demonstration, and space science missions. The small satellite market has gained immense popularity due to its applications in monitoring climate change, agriculture, disaster management, border security, and maritime surveillance. They provide frequent imagery at low costs and help collect data related to weather forecasting, natural disaster monitoring, tracking oil spills, and monitoring the effects of climate change.
Market key trends:
One of the key trends in the small satellite market is the growing demand for earth observation applications. Space agencies and private companies across the globe are extensively using small satellites for earth observation and monitoring purposes. Environmental monitoring, disaster management, agriculture monitoring, and border security are some of the major application areas driving the demand. Furthermore, small satellites have advantages over traditional large satellites as they have lower production costs and can be launched in large numbers to provide more frequent imagery. This has prompted many commercial companies as well as government agencies to develop small satellite constellations for earth observation.
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.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the small satellite market requires significant upfront investment and resources to develop small satellites and related technology. However, new companies are entering the market by developing innovative solutions for small satellite components.
Bargaining power of buyers: The bargaining power of buyers is moderate to low as small satellites are highly specialized offerings and buyers have limited options to choose from.
However, few large organizations have significant bargaining power due to large volume procurements.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as key components and technologies required for small satellites have limited sources of supply. However, established suppliers have considerable bargaining power over components pricing and availability.
Threat of new substitutes: The threat of new substitutes is low as small satellites provide unique and specialized capabilities that are difficult to substitute. However, new technologies for large satellites pose a potential threat for specific applications.
Competitive rivalry: The competitive rivalry is high among major players due to the increasing number of small satellite launches and space technology innovations.
Key Takeaways
The global small satellite market size is expected to witness high growth, exhibiting CAGR of 15% over the forecast period, due to increasing demand for earth observation services and connectivity applications.
Regional analysis: North America holds the dominant share in the small satellite market led by growing investments by the US government and private companies in space technology. Asia Pacific is expected to be the fastest-growing market owing to the increasing number of satellite launches by China and India.
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.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
