Small Satellite Services Market Report 2025

The small satellite services market size has grown exponentially in recent years. It will grow from $60.24 billion in 2024 to $76.18 billion in 2025 at a compound annual growth rate (CAGR) of 26.5%. The growth in the historic period can be attributed to cost reduction in space missions, government and military applications, commercialization of space, increased launch opportunities.

The small satellite services market size is expected to see exponential growth in the next few years. It will grow to $200.4 billion in 2029 at a compound annual growth rate (CAGR) of 27.4%. The growth in the forecast period can be attributed to increasing demand for earth observation, rapid growth in satellite constellations, space tourism and commercial spaceflights, government initiatives and contracts. Major trends in the forecast period include cost efficiency, rapid innovation in space technology, remote sensing and earth observation, internet of things (IoT) connectivity.

Significant investments by venture capital firms in the small satellite service market are anticipated to drive its growth in the future. Numerous venture companies are directing substantial funding toward small satellite markets to facilitate improved solutions. These investments encompass areas such as communication services, launch services, integration services, satellite testing, logistics, and more. For example, in May 2024, Primo Ventures, an Italy-based venture capital and private equity firm, reported that Revolv Space, a space tech startup operating in Italy and the Netherlands, secured €2.6 million in funding to enhance small satellite capabilities through advanced mechanisms and power systems. Consequently, the increased investments by venture companies in the small satellite service market are propelling its growth.

The growth trajectory of the small satellite services market is further fueled by the increasing number of satellite launches. Satellite launches, involving the deployment of objects into space to orbit around celestial bodies like Earth, have witnessed a notable surge. This surge is attributed to the growing demand for diverse applications such as global internet coverage, Earth observation, communications, and scientific research. According to a June 2023 report from the Union of Concerned Scientists (UCS), there were a total of 6,718 active satellites orbiting the Earth by the end of 2022, reflecting an increase of nearly 2,000 satellites compared to the previous year. This upswing in satellite launches underscores the pivotal role of small satellite services in meeting the increasing demand for satellite-based applications.

Major players in the small satellite services market are concentrating on technological advancements, such as heat measurement, to better understand the planet's energy balance and forecast climate changes. Heat measurement, also referred to as thermal management, involves monitoring and regulating the temperature of satellite components to ensure optimal performance and prevent overheating. For example, in May 2024, the National Aeronautics and Space Administration (NASA), a U.S. government agency responsible for civilian space programs, launched the Small Climate Satellite to Study Earth’s Poles. The PREFIRE mission aims to examine heat emissions from the polar regions of Earth using two CubeSats. It will measure far-infrared radiation to enhance climate models and predict changes in sea ice, weather patterns, and sea levels. The data collected will improve understanding of Earth's energy balance and assist sectors such as agriculture and fishing in adapting to climate impacts. The CubeSats are expected to operate for 10 months following the successful establishment of communication.

Major companies in the small satellite services market are concentrating on technological advancements, such as integrated avionics systems that can support up to 400 GB of data storage. An Integrated Avionics System (IAS) is a cohesive network of aviation electronics designed to manage various aircraft systems from a centralized location. For example, in August 2024, the Indian Space Research Organisation (ISRO), the national space agency of India, launched the Earth Observation Satellite EOS-08, which includes payload instruments compatible with the microsatellite bus. The launch vehicle successfully carried an earth observation satellite weighing 175.5 kg, along with a smaller satellite developed by a Chennai-based startup. Designed to lift up to 500 kg to Low Earth Orbit, the rocket aims to facilitate future operational missions. The payloads consist of instruments for surveillance, environmental monitoring, ocean surface wind analysis, and a UV radiation dosimeter. This mission signifies the successful completion of the rocket's development project.

In September 2024, Redwire Corporation, a US-based aerospace manufacturer and space infrastructure technology firm, acquired Hera Systems, Inc. for an undisclosed amount. This acquisition is intended to enhance Redwire's position in the expanding space economy and to provide more comprehensive solutions to its clients. This strategic move aligns with Redwire's goal of expanding its portfolio and delivering innovative space-based solutions. Hera Systems, Inc. is a US-based company that specializes in advanced satellite technology and services.

Major companies operating in the small satellite services market are Eutelsat S.A., EchoStar Corporation, Airbus SE, Blue Canyon Technologies, GomSpace A/S, L3Harris Technologies Inc., The Lockheed Martin Corporation, Northrop Grumman Corporation, Sierra Nevada Corporation, Thales Alenia Space, Surrey Satellite Technology Ltd., Space Exploration Technologies Corp., Millennium Space Systems Inc., Adcole Maryland Aerospace LLC, Planet Labs Inc., Spire Global Inc., Globalstar Inc., Inmarsat, Iridium Communications Inc., Viasat Inc., NanoRacks LLC, Tyvak Nano-Satellite Systems Inc., AAC Clyde Space, Axelspace Corporation, D-Orbit, Kepler Communications Inc., Satellogic, Sky and Space Global Ltd., Terran Orbital Corporation.

North America was the largest region in the small satellite services market share in 2024. The regions covered in the small satellite services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the small satellite services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Small satellite services encompass a range of offerings designed to enhance the functionality of small satellites, enabling them to execute successful space missions. These services provide data and connectivity solutions while aiming to reduce launch and operational expenses.

These services operate across various platforms such as CubeSats, nanosatellites, microsatellites, and minisatellites. CubeSats, for instance, are small, cube-shaped satellites weighing around 1 kilogram, commonly utilized in missions within Earth's orbit. Small satellite services are categorized into traditional Low Earth Orbit (LEO) and Medium Earth Orbit (MEO) satellites, along with LEO and MEO high-throughput satellites for enhanced performance. Key sectors leveraging these services include government and military entities, non-profit organizations, and commercial ventures. The applications span communication, remote sensing, research, education, surveillance, security, navigation, and other relevant fields.

The small satellite services market research report is one of a series of new reports that provides small satellite services market statistics, including small satellite services industry global market size, regional shares, competitors with a small satellite services market share, detailed small satellite services market segments, market trends and opportunities, and any further data you may need to thrive in the small satellite services industry. This small satellite services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The small satellite services market includes revenues earned by entities by providing mission management, launching services, integration services, environmental testing, and in-space logistics services to fit mission needs. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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