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.