Future Markets Insights has published a report that forecasts the global market for small satellites to expand at a stellar pace during the next decade. According to the report, over the assessment period 2018-2028, the global sales of will grow from US $ 2.31 billion to US $ 8.94 billion.
Nano-satellites are expected to stay dominant, whereas by end-use, the defence sector will continue to generate the highest demand for small satellites over the next few years. By region, North America has been identified to be the dominant market, while Western Europe and SEA and others of APAC are apprehended to witness robust growth in the course of assessment.
Key Market Influencers
Increasing government funds, growing private entity support, and steady demand for satellite for R&D purposes is set to collectively drive the market for small satellite on a global level. Moreover, surging adoption for low-earth orbit services is said to be a prominent factor that will foster the market growth over 2018-2028. The market is likely to encounter with a few challenges during the assessment period, including space debris problems, lack of skilled resources, and multiple regulatory limitations. However, advent of space technology and favorable government policies will continue to boost the market to thrive at a rapid pace in near future.
Rapid development of manufacturing and assembling techniques has resulted in reduced development and operational costs, which is compelling several countries to take efforts in the development of space technologies. This has been said to be an important factor creating a heap of opportunities for the global small satellite market.
Continued Dominance of North America and Robust Growth in Western Europe, SEA & others of APAC
All regional markets for small satellite are anticipated to exhibit healthy growth at promising double-digit CAGR values over the forecast period 2018-2028. As per the regional segmentation analysis, North America will remain the largest market share contributor through to 2028. Holding more than 55% of the market value share in 2017, North American market for small satellite is expected to grow at a significant CAGR of 13.1% by 2028 end. US will remain dominant in global small satellite market accounting for an estimated value share of around 54% in 2018. The increasing number of collaboration with the US government, and prominent presence of various key players in the region constitute the factors which are driving the growth of small satellite market in the region.
In addition, increasing use of satellite images, growing surveillance demand in defence sector, growing awareness about space situation, and falling launch prices are foreseen to collectively provide traction to the growth of small satellite market in North American region. North America is projected to create a total incremental opportunity of US $ 3,426.5 million between 2018 and 2028, and this growth is owing to the growing number of small satellite missions in collaboration with the US Government.
Western Europe, and SEA and others of APAC will exhibit significant growth over the decade. Western Europe is projected to create a total incremental opportunity of US $ 1,030.1 million between 2018 and 2028. The increase in number of small satellites projects in collaboration with European Space Agency for scientific research and technology demonstration is creating potential opportunities for small satellite market in this region.
Similarly, SEA and others of APAC segment are also projected for huge incremental opportunity of US $ 594.9 million between 2018 and 2028. Space infrastructure development in emerging economies such as India and growing interest in small satellites for crop and natural disaster monitoring are found to be predominantly driving the growth of the market in this region. The research also recognizes potential growth opportunities in China, Japan, and India on account of favourable governmental policies in these countries related to spectrum allocation, debris mitigation standards, and space traffic management.
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