CubeSat market set for double digit growth
The latest report from Allied Market Research finds that the global CubeSat industry garnered $210.1 million in 2019, and is expected to reach $491.3 million by 2027, representing a CAGR of 15.1% from 2020 to 2027.
The smaller size and weight as compared to conventional satellites, a rise in demand for commercial applications, and the emergence of new application areas are driving the growth of the global CubeSat market. However, limitations regarding payload accommodation and strict government regulations are an impediment to market growth. On the other hand, developments in technologies to improve capabilities and a rise in demand for space data present new opportunities in the coming years.
COVID-19 has caused many countries to lower their budgets for space programs as the focus has shifted to pandemic response and recovery measures. In addition, the lockdown across nations has forced CubeSat manufacturing facilities to close down or postpone the opening of facilities. Despite the impact of Covid-19 on the sector, there has been increase in participation of private players to moderately carry out operations and several CubeSats were launched in 2020.
Based on application, the earth observation and traffic monitoring segment accounted for the largest share in 2019, contributing to around half of the global CubeSat market, and is expected to maintain its leadership status throughout the forecast period. This is due to its low cost and short development cycle. However, the science technology and education segment is estimated to manifest the highest CAGR of 16.0% from 2020 to 2027, owing to rise in investments by governments in research and scientific experiments.
Based on the end user, the commercial segment contributed to the largest market share, accounting for more than half of the global CubeSat market in 2019, and will maintain its lead position during the forecast period. In addition, this segment is estimated to witness the fastest CAGR of 15.6% from 2020 to 2027. This is attributed to the increase in demand for obtaining high-resolution earth imaging and communication services.
Based on region, North America held the highest share in 2019, accounting for more than half of the global CubeSat market, and will maintain its dominance in terms of revenue by 2027. This is attributed to rise in utilization for defense missions and commercial exploration along with increase in investments in R&D, product development, and technological advancements. However, Asia-Pacific is projected to maintain the largest CAGR of 16.6% during the forecast period, owing to continuous investment in development and procurement of CubeSats to raise their presence.
Further reading
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Viasat acquires RigNet, gains AI, machine learning capabilities
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