Nanosatellite and Microsatellite Market Report 2025

The nanosatellite and microsatellite market size has grown rapidly in recent years. It will grow from $2.96 billion in 2024 to $3.53 billion in 2025 at a compound annual growth rate (CAGR) of 19.2%. The growth in the historic period can be attributed to emerging market opportunities, academic and research endeavors, earth observation and remote sensing, government initiatives and funding, rise of commercial space industry.

The nanosatellite and microsatellite market size is expected to see rapid growth in the next few years. It will grow to $6.72 billion in 2029 at a compound annual growth rate (CAGR) of 17.4%. The growth in the forecast period can be attributed to emerging market verticals, government support and policies, space exploration initiatives, rise of small satellite constellations, expansion of earth observation. Major trends in the forecast period include rise of small satellite constellations, advancements in miniaturization, expanding communication capabilities, growth in space science missions, innovations in propulsion systems.

The growing number of space exploration missions is significantly boosting the nanosatellite and microsatellite market. Space exploration missions involve projects aimed at exploring the cosmos beyond Earth's atmosphere using both crewed and uncrewed spacecraft. Nanosatellites and microsatellites are employed for specialized tasks such as Earth observation, telecommunications, and meteorology. Various governments worldwide are expanding their space missions, with small satellites playing a crucial role in achieving these objectives. For example, a report from SpaceNews in June 2024 indicated that U.S. manufacturers accounted for approximately 85% of commercially procured satellites in 2023. Satellite manufacturing revenue increased by 9% to $17.2 billion, driven by flexible software-defined payloads and advanced small satellites. Additionally, there were a record 190 commercially procured launches, marking an 18% increase from 2022, which deployed 2,781 commercial satellites - up 20% year-over-year - largely due to SpaceX's efforts. Thus, the rise in space exploration missions is propelling the growth of the nanosatellite and microsatellite market.

The expected growth of the nanosatellite and microsatellite market is further fueled by the increase in international trade activities. International trade involves the exchange of goods, services, and capital across borders, encompassing buying and selling between different countries. In the context of international trade, nanosatellites and microsatellites offer advantages such as cost-effectiveness, rapid deployment, global connectivity, Earth observation, precision agriculture, navigation support, supply chain monitoring, market intelligence, and emergency response capabilities. As of November 2023, the U.S. Census Bureau reported that U.S. exports in March 2023 totaled $256.2 billion, indicating growth from the previous month. Consequently, the rise in international trade activities is contributing to the growth of the nanosatellite and microsatellite market.

A key trend gaining momentum in the nanosatellites and microsatellites market is technological advancements. Major companies in this market are actively focusing on advancing technologies to strengthen their market position. For instance, in April 2022, Space Exploration Technologies Corp. (SpaceX), a U.S.-based aerospace manufacturer and space transportation company, launched a modular microsatellite named MP42. Representing one of the industry's first commercially available modular microsatellite buses, the MP42 satellite is the largest satellite manufactured and launched by NanoAvionics to date. It is part of a ridesharing mission carrying various payloads, including the RW500 fully integrated reaction wheel from VeoWare and the Tiger-3 from OQ Technology.

Key players in the nanosatellites and microsatellites market are concentrating on developing innovative products, including tiny satellites, to boost their revenues. These tiny satellites are built using off-the-shelf technologies and are designed to be cost-effective and lightweight. For instance, in April 2024, Planet Labs, a U.S.-based technology company specializing in capturing and analyzing satellite imagery for environmental and commercial applications, launched Pelican-1. This satellite is the first in Planet's next-generation Pelican constellation, engineered for high-resolution Earth imaging. Serving as a technology demonstrator, Pelican-1 validates the hardware and software components of Planet’s Smallsat Platform. The Pelican constellation aims to enhance image resolution and provide quicker revisit times, facilitating real-time monitoring in sectors such as agriculture, urban planning, and disaster response. This launch represents a significant advancement in Planet’s initiatives to enhance satellite imaging capabilities for global monitoring.

In August 2024, Lockheed Martin, a U.S.-based aerospace and defense firm, acquired Terran Orbital for $450 million. This acquisition is part of Lockheed Martin's strategy to expand its growing space portfolio. Terran Orbital is known for its high-throughput robotic manufacturing capabilities and advanced modular space vehicle designs, which will enhance Lockheed Martin's capabilities in the small satellite sector. This acquisition is anticipated to significantly strengthen Lockheed's offerings in satellite technology and manufacturing. Terran Orbital specializes in developing innovative nanosatellites and microsatellites for both commercial and governmental applications.

Major companies operating in the nanosatellite and microsatellite market include Dauria Aerospace, GomSpace Group AB, Innovative Solutions In Space (ISIS), Sierra Nevada Corporation, Spire Global Inc., SpaceQuest Ltd., Survey Satellite Technology Limited, Tyvak Nano-Satellite Systems Inc., AAC Clyde Space AB, Lockheed Martin Corporation, Planet Labs PBC, L3Harris Technologies Inc., Axelspace Corporation, Astro Digital Inc., Berlin Space Technologies, Northrop Grumman Corporation, Raytheon Technologies Corporation, Dynetics Inc., RUAG Group, Swarm Technologies Inc., Blue Canyon Technologies Inc., China Aerospace Science and Technology Corporation, Spaceflight Industries Inc., ECM Space Technologies GmbH, TriSept Corporation, SpaceWorks Enterprises Inc., NanoAvionics Inc., Kepler Communications Inc., Pumpkin Inc., Nanoracks LLC.

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

Nanosatellites and microsatellites (NaM) are miniaturized artificial satellites with weights ranging from 1 to 100 kilograms. These satellites orbit the Earth in polar (circular or elliptical) orbits and are typically launched at low altitudes. They travel at high speeds, providing effective solutions for communication, remote sensing, and Earth observations.

The primary components of nanosatellites and microsatellites include launch services, hardware, software and data processing, and space services. Launch services involve the process of placing satellites into their designated orbits, and they play a critical role in the initial stages of launching nanosatellites and microsatellites into space. Nanosatellites typically weigh between 1 kg and 10 kg, while microsatellites weigh between 11 kg and 100 kg. These satellites find applications in various fields such as communication, reconnaissance, scientific research, Earth observation and remote sensing, biological experiments, academic training, technology demonstration and verification, mapping, and navigation. They are utilized by major verticals including government, defense, maritime and transportation, civil sectors, commercial enterprises, energy, and infrastructure.

The nanosatellite and microsatellite market research report is one of a series of new reports that provides nanosatellite and microsatellite market statistics, including nanosatellite and microsatellite industry global market size, regional shares, competitors with a nanosatellite and microsatellite market share, detailed nanosatellite and microsatellite market segments, market trends and opportunities, and any further data you may need to thrive in the nanosatellite and microsatellite industry. This nanosatellite and microsatellite 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 nanosatellite and microsatellite market consists of sales of on-board computer (OBC), electrical power subsystem (EPS), and communication subsystem. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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