Nanosatellite And Microsatellite Market Size, Share & Trends Analysis Report By Mass, By Application (Communication & Navigation, Scientific Research), By End Use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global nanosatellite and microsatellite market size was valued at USD 2.12 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) exceeding 23.3% from 2022 to 2030. The growing demand for miniaturized satellites across multiple verticals is expected to provide an impetus to market growth. For instance, in November 2021, a Japan-based Epsilon rocket launched nine miniature satellites into orbit in the latest endeavor to encourage educational institutions and businesses to participate in space exploration.

The launch of small satellites via heavy vehicles has proved to be quite challenging over the recent years, resulting in the increased demand for small launch vehicles. Earlier, small satellites were launched as an additional payload with larger satellites, which increased launch and cost constraints. The growing demand for small launch vehicles that can overcome these cost constraints culminated in the development of Small Satellite Launch Vehicles (SSLVs). For instance, in April 2022, China's scientists worked on a fleet of small satellites for cutting-edge astronomical investigations.

Furthermore, low entry barriers and private and institutional funding are allowing manufacturers to aggressively develop SSLVs and capture a potential share in the nanosatellite market. For instance, in April 2022, the chairman of the Indian Space Research Organization, the national space agency of India, announced the deployment of an SSLV-D1 Micro SAT, a small satellite launch vehicle. The SSLV-D1 Micro SAT seeks to serve the industry to deploy miniature satellites into the Earth's lower orbits to meet the needs of developing economies, universities, and private enterprises.

Small satellites are witnessing continuous technological advancements owing to their simple and faster construction & design requirements. The low cost of these satellites has broadened the range of possible space missions. Moreover, simplified design and development are also allowing the integration of the latest technologies such as Artificial Intelligence (AI) and robotics in small satellites. Furthermore, these satellites are using Very High Frequency (VHF), Ultra High Frequency (UHF), and visible transmission technologies to increase the signal frequency and transfer speeds.

Nanosatellites and microsatellites are more prone to failure and do not have any major impact in terms of providing any novel and market-redefining capabilities. However, Machine Learning (ML) intelligence on various space development platforms is contributing to ensuring efficient communications, improving spacecraft reliability, ensuring efficient computing capabilities, and enhancing coordination for the overall development of a mission. These satellites are also expected to provide actionable data insights to governments and humanitarian partners, among others.

Mass Insights

The nanosatellites segment accounted for a revenue share of more than 79% in 2021 owing to the growing deployment of a nanosatellite for Earth observation missions. The data from Earth observation satellites have proven to be significantly beneficial for applications such as improving water management, tracking refugee populations, carrying out relief operations, and national defense. A nanosatellite has further revolutionized navigation and transportation capabilities, resulting in improved safety records, efficient routes, and lower operating costs.

Research organizations are developing strategies that envisage the use of smaller satellites for academic purposes and for conducting technological experiments in space. For instance, NASA’s CubeSat initiative has offered opportunities to educational institutions and NGOs to collaborate in the upcoming launches of small satellites. Through such innovative technology partnerships, NASA is providing CubeSat developers a cost-efficient way to conduct scientific studies and technological demonstrations in space.

Application Insights

The Earth observation/remote sensing segment accounted for a revenue share of more than 51% in 2021 as several governments continued 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. In February 2022, Singapore planned to develop a small satellite to observe the Earth and take higher-resolution photographs of the damage caused by natural disasters and improve connectivity.

The adoption of smallsats in communication and navigation is increasing owing to the 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. These payloads can deliver fixed, mobile, and broadcast services for regional area coverage. For instance, in April 2022, Omnispace and Thales Alenia Space announced the successful delivery of the Omnispace Spark-1TM aboard the SpaceX Transporter-4.

End-use Insights

The commercial segment dominated the market for nanosatellite and microsatellite with a revenue share of more than 44% in 2021 owing to an increase in communication, broadcasting, and navigation activities. For instance, in March 2021, Open Cosmos launched two commercial nanosatellites, which demonstrated the ability of low-cost satellites to deliver IoT connectivity and data collection to remote places of the world. According to the Satellite Industry Association (SIA), the demand for broadband satellites is expected to grow at a CAGR of 29% by 2024.

The defense & security segment accounted for a revenue share of over 27% in 2021 as small satellites help in enhancing operational support to military forces. They provide the capability to disaggregate military satellite functions and communications between other satellites, which surges their capacity and makes them more secure. For instance, in February 2022, the Indian Space Research Organization (ISRO) launched RISAT-1A, a radar imaging satellite expected to improve India's border defense and security and offer high-resolution photos in all-weather situations.

Regional Insights

North America dominated the nanosatellite and microsatellite market with a revenue share of over 47% in 2021 owing to the 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, the rise in the demand for small satellites from different end-use sectors such as research organizations, military & defense, and telecommunications has provided an impetus to the regional market growth.

The 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 meet the need for miniaturization. Furthermore, countries such as South Korea and Singapore have entered the smallsat production market to launch their satellites into orbits irrespective of the scale of implementation.

Key Companies & Market Share Insights

Nanosatellite and microsatellite have witnessed substantial growth in terms of spacecraft development, building, and launches over the past decade. The CubeSat concept enabled companies to find a different role in satellite design compared to their traditional roles. Moreover, large system integrators dominated the space industry for a long time but advances in the small satellite industry allowed smaller companies such as Innovative Solutions in Space (ISIS) and Tyvank Inc. to emerge and have a more established role at the forefront of the small satellite industry.

For instance, in March 2021, Rocket Lab USA, a public American aerospace manufacturer and small satellite launch service provider launched seven small satellites into the Earth’s orbit, including its spacecraft for future missions. The seven payloads sent into space included an Earth-observation microsatellite and two "internet of things" nanosatellites. Furthermore, there were three experimental satellites onboard and a tech-demo CubeSat for the U.S. Army's Space and Missile Defense Command (SMDC). Some prominent players in the global nanosatellite and microsatellite market include:

• Dauria Aerospace

• GomSpace

• Innovative Solutions in Space (ISIS)

• Sierra Nevada Corporation (SNC)

• Spire Global, Inc.

• SpaceQuest Ltd.

• Surrey Satellite Technology Limited (SSTL)

• The Boeing Company

• Tyvak Inc.

• Vector Launch, Inc

Nanosatellite And Microsatellite Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global nanosatellite and microsatellite market report based on mass, application, end-use, and region:

• Mass Outlook (Revenue, USD Million, 2017 - 2030)

  • Nanosatellites

  • Microsatellites

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Communication & Navigation

  • Earth Observation/Remote Sensing

  • Scientific Research

  • Technology & Academic Training

• End-Use Outlook (Revenue, USD Million, 2017 - 2030)

  • Government

  • Defense & Security

  • Commercial

  • Civil

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa