Making it big with their small size- The boom of Smallsats!

The Space Industry has always been characterised by rapid developments, technological advancements, and innovations. The large satellites have for long been the mascots of space, exemplified by their optimal performance and wide-ranging capabilities. However, the quest to achieve these functions at low cost and in minimum possible time while maximising returns and improving performance has generated newfound interest in the small satellite market. Small satellites are thus being positioned as a viable aid to the satellite industry, especially in the developing countries, which have for long been dependent for satellite services on developed countries.

The small satellite market has received a further push with the emergence of start-ups and the onset of NewSpace, which is changing the way business is carried out in the industry. While NewSpace has not been technically defined, the concept is primarily about challenging the traditional ways of space exploration that are considered too expensive, time-consuming, and risky. Companies that identify with NewSpace are working to bring down the cost of space products and services. Their space missions are, therefore, based on the fly-learn-refly approach. The result is that space is now considered a commercially attractive domain, while also making satellite services viable for widespread decision making and other services.

The number of small satellites launched has seen a phenomenal increase in the last decade, with the year 2017 witnessing a record number of launches, surpassing all expectations and forecasts. This trend is expected to continue in the next five years with several small satellite constellations planned to be launched, beginning 2019. As a result, the market is poised to witness double digit growth. These constellations will pull up the market growth for all the participants of the value chain, ranging from manufacturers to launch and satellite services providers. The launch industry is forecast to be the largest beneficiary of the incessant growth in the market. The recent market report titled ‘Small Satellite Market – Global Analysis and Forecast, 2018-2023’ will throw light on these aspects of the small satellite market and its growth prospects.

While small satellites currently contribute only a small share to the $330 billion space industry, there is expected to be unprecedented growth in the market because of the vast potentials that small satellites possess. The market presents several avenues for new entrants which, although, a major threat for existing players, is a playground for competitiveness and growth. Another trend that has been observed in the small satellite market is the active participation and investments by venture capitalists. This investment is a major driver of the small satellite market. Some key players of the market are Surrey Satellite Services Ltd, NanoRacks, GomSpace, Spire, Planet, Thales Alenia Space, Airbus, and SpaceX, among others.

 Our next blog will talk about revenue potential in the small satellite industry.