Global Nanosatellite and Microsatellite Market Report and Forecast 2024-2032

Global Nanosatellite and Microsatellite Market Size

The global nanosatellite and microsatellite market reached approximately USD 3.09 billion in 2023. The market is estimated to grow at a CAGR of 18.5% in the forecast period of 2024-2032, reaching a value of around USD 14.40 billion by 2032.

Global Nanosatellite and Microsatellite Market Trends

Nanosatellites and microsatellites are types of miniature satellites that weigh less than 100 kg and are more affordable compared to conventional satellites. Some of their common applications include space research, communication, navigation, observation, and remote sensing, among others.

• The burgeoning popularity of CubeSats, a class of miniature satellites, which has low production time and cost and provides a range of services for different organisations and individuals, is one of the key trends of nanosatellite and microsatellite market.

• Increased usage of commercial off-the-shelf components (COTS), which are cost-effective and facilitate faster development of micro and nanosatellites, is another crucial trend aiding the market expansion.

• The rising trend of sustainability has led satellite providers to adopt eco-friendly satellite manufacturing methods as well as meet the conventional guidelines set by governments to prevent micro and nano satellites from becoming space debris in the future.

• Growing collaborations and partnerships between leading technology companies and market players for the integration of high-end technology into satellite products and providing promising business prospects also contribute to the nanosatellite and microsatellite market value.

Recent Developments

The Indian Space Research Organization (ISRO) made history on August 20, 2022, when it successfully launched the first Small Satellite Launch Vehicle (SSLV), transporting a student satellite and an earth observation satellite from the Sriharikota spaceport. Small satellite launch vehicles (SSLVs) will be launched by ISRO for the first time to deliver satellites to low-Earth orbit. The SSLV was created by the Indian Space Research Organization to deploy low-Earth orbit satellites (LES) that weigh less than 500 kg. These satellites are highly preferred for uses including earth observation and internet access in remote locations.

Industry Outlook

The military sector has been using MEO and GEO satellites more frequently in recent years because of their benefits, which include stronger signals, better data transfer and communications capabilities, and a larger coverage area, thereby increasing the nanosatellite and microsatellite industry revenue. For example, less than a year after being given the go-ahead, Millennium Space Systems, a Boeing company completed the Missile Track Custody (MTC) space vehicle Critical Design Review (CDR). For MTC Epoch 1, Millennium Space Systems will now supply six spacecraft. This covers an increased Other Transaction Authority (OTA) for vehicles four through six as well as the original contract option for two additional vehicles. The goal of the Missile Track Custody program is to protect against advanced threats such as hyperglide vehicles and intercontinental ballistic missiles.

As per a report by NASA, a total of 2,510 spacecraft were launched in 2022, of which 96% and 25%, respectively, were SmallSats with masses under 600 kg and 200 kg. In the last ten years, about 40% of all spacecraft weighing less than 200 kg have been launched. Operators like SpaceX, OneWeb, and Planet have expanded their SmallSat and CubeSat constellations, which has resulted in a notable increase in the number of SmallSats launched in the last few years. The need for SmallSat launches is anticipated to increase steadily as more missions are being planned.

As per nanosatellite and microsatellite industry analysis,1,743 smallsats were launched in 2021. Ninety-four percent of all spacecraft launched in the year were smallsats. Approximately 80% of these smallsats were devoted to communication purposes. The remaining 9% went into technology development and remote sensing, with the remaining 1% going toward scientific and other uses. In 2021, small satellites accounted for 43% of all spacecraft mass. Also, 37% of all smallsat launches over the past ten years took place in 2021, with 69% of launches occurring in 2020 and 2021 combined. In 2021, 80 launches were made with smallsats aboard. Furthermore, mini or micro launch vehicles were used for 6% of smallsat launches in 2021.

By the end of 2021, it was conservatively predicted that SpaceX Starlink and OneWeb alone will have launched 1,016 and 316 LEO satellites, respectively.

Global Nanosatellite and Microsatellite Industry Segmentation

Based on component, the market is divided into solution and services. On the basis of type, the market is bifurcated into microsatellites and nanosatellites. Based on orbit, the market is classified into non-polar inclined, polar orbit, and sun-synchronous.

On the basis of frequency, the market is categorised into S-band, UHF-band, VHF-band, and X-band, among others. The nanosatellite and microsatellite market segmentation, based on application, includes communication and navigation, scientific research, earth observation/remote sensing, and technology and academic training.

On the basis of end use, the market is segmented into defence and security, government, commercial, and civil. The major regional markets of nanosatellite and microsatellite include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

Nanosatellite and Microsatellite Market Share

Earth observation/remote sensing are increasingly using nanosatellites and microsatellites due to rapid growth of meteorological observation projects

As per nanosatellite and microsatellite market dynamics and trends, earth observation/remote sensing occupies a significant portion of the market share, due to the rapid growth of meteorological and earth observation projects. Increased government investments in the earth observation sector to better understand key environmental factors also contribute to the segment’s growth.

Meanwhile, communication and navigation applications are also expected to gain sizeable growth in the upcoming years, owing to the rising usage of nanosatellites and microsatellites in improving the mobile and broadcast services of a limited area.

Nanosatellite and Microsatellite Market Regional Analysis

As per the nanosatellite and microsatellite market analysis, North America accounts for a substantial share of the global market, owing to the increased spending by the region’s governments in the space sector. The rapid rise of space research missions in the USA and Canada also offers lucrative nanosatellite and microsatellite market opportunities.

The growing utilisation of micro and nano satellites by military and defence, telecommunication, and research organisations, among other end-use sectors, is another prominent factor driving the market expansion.

Rising Demand for Cost-Effective Satellite Solutions and Technological Advancements Drive Nanosatellite and Microsatellite Market Growth

• Increasing demand for cost-effective and efficient satellite solutions for communication, Earth observation, and scientific research significantly boosts the market for nanosatellites and microsatellites.

• Technological advancements in miniaturization, propulsion systems, and payload capabilities enhance the functionality and performance of nanosatellites and microsatellites.

• The growing adoption of nanosatellites and microsatellites by government agencies, private companies, and academic institutions for various applications drives nanosatellite and microsatellite demand growth.

• Investments in space exploration and satellite-based services by emerging economies contribute to the market growth.

Regulatory Challenges, and Orbital Debris Concerns Impact Market Dynamics

• Navigating complex regulatory frameworks and obtaining necessary licenses and approvals for satellite launches pose significant challenges for market players.

• Concerns related to orbital debris and the long-term sustainability of space activities necessitate the development of responsible deployment and disposal practices.

• Ensuring the reliability and longevity of nanosatellites and microsatellites in harsh space environments requires continuous innovation and quality assurance, affecting the nanosatellite and microsatellite demand forecast.

Constellation Deployments, Inter-Satellite Communication, and Commercialization Offering New Growth Opportunities to the Markey Players

• The trend towards deploying satellite constellations for global coverage and improved connectivity supports the nanosatellite and microsatellite market revenue.

• Advances in inter-satellite communication technologies enhance the capabilities of satellite networks and enable more complex mission profiles.

• Growing commercialization of space activities, including satellite-based services and data analytics, creates new market opportunities for nanosatellites and microsatellites.

• Increasing collaborations between space agencies, private companies, and research institutions foster innovation and expand the scope of satellite applications.

Economic Impact, Competitive Pressures, and Technological Innovations Shape the Market Landscape

• The economic impact of the nanosatellite and microsatellite industry, including job creation, investment in technology, and growth of ancillary services, supports broader economic development.

• Intense competition from established satellite manufacturers and new market entrants drives the need for continuous innovation, cost reduction, and strategic differentiation, thus impacting the nanosatellite and microsatellite market share.

• Rapid technological innovations in satellite design, materials, and launch technologies enhance market potential and enable new applications.

• Market volatility, influenced by regulatory changes, geopolitical factors, and technological advancements, requires agile business strategies and risk management.

Key Players in the Global Nanosatellite and Microsatellite Market and Their Strategic Initiatives

• GomSpace Group AB

• Kongsberg Gruppen ASA (NanoAvionics)

• Axelspace Corporation

• Sierra Nevada Corporation

• Terran Orbital Corporation (Tyvak International)

• AAC Clyde Space AB

• Innovative Solutions In Space B.V. (ISIS)

• OHB SE

• Surrey Satellite Technology Ltd. (SSTL)

• EXOLAUNCH GmbH

• Others

Lockheed Martin Corporation

• Advanced Satellite Technologies: Develops cutting-edge nanosatellite and microsatellite technologies for various applications, including Earth observation, communication, and defence and increasing the nanosatellite and microsatellite demand.

• Strategic Partnerships: Forms alliances with governmental and commercial entities to co-develop satellite solutions, enhancing its market presence and technological capabilities.

Planet Labs Inc.

• High-Resolution Imaging: Specializes in high-resolution Earth imaging nanosatellites, providing detailed and up-to-date data for various industries, including agriculture, forestry, and urban planning.

• Data Analytics Integration: Integrates advanced data analytics and AI capabilities into its services, offering clients actionable insights from satellite data.

GomSpace Group AB

• Customized Satellite Solutions: Provides customized nanosatellite and microsatellite solutions tailored to meet the specific needs of clients across different sectors.

• Focus on Research and Development: Invests in R&D to push the boundaries of satellite technology, exploring new applications and improving existing capabilities is further propelling the growth of the nanosatellite and microsatellite market.

Surrey Satellite Technology Limited (SSTL)

• Cost-Effective Satellites: Focuses on developing cost-effective nanosatellites and microsatellites, making space technology more accessible to a broader range of clients.

• Commercial and Academic Partnerships: Collaborates with commercial entities and academic institutions to drive innovation and expand its market reach.

Key Highlights of the Report

Nanosatellite and Microsatellite Market Report Snapshots

Nanosatellite and Microsatellite Market Size

Nanosatellite and Microsatellite Market Trends

Nanosatellite and Microsatellite Market Share

Nanosatellite and Microsatellite Companies

Nanosatellite and Microsatellite Market Regional Analysis