The increasingly competitive nanosatellite and microsatellite market has been witnessing heavy investments in research and development from private as well as government organizations. The entry of several new players has also been observed in the recent past, which is indicative of the rising potential this market possesses. The projected launch of nanosatellites and microsatellites in the coming years is also expected to add to this potential.
The demand for Nanosatellite and Microsatellite Market stems from various industry sectors, including military and defense, education and scientific research, commercial, and navigation and mapping. Given the capital intensive nature of large satellites, nanosatellites and microsatellites are the perfect alternative and serve a number of needs in the aforementioned sectors. This growing demand is projected to spur the market to expand at a strong 12.1% CAGR from 2016 to 2024, with the opportunity expected to be worth US$2.2 bn by the end of the forecast period.
Demand Rising for Nanosatellites and Microsatellites for Communication Services
Nanosatellites and microsatellites find application in scientific research, communication, navigation and mapping, power, reconnaissance, and others including Earth observation, biological experiments, and remote sensing. In 2015, communications held the dominant share in the market. Defense organizations have been launching communication nanosatellites and microsatellites to provide communication signals to soldiers stationed in remote locations or in dense forests. A number of companies in the telecom sector are also taking various initiatives to launch constellations of nanosatellites and microsatellites to offer their users faster internet services and additional bandwidth. Applications such as remote sensing and Earth observation are likely to gain momentum in the coming years.
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The global market for nanosatellites and microsatellites has been geographically segmented into North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. In 2015, North America accounted for the largest share in the nanosatellite and microsatellite market, with the U.S. emerging as the leading contributor. This can be attributed to advanced technologies facilitating space research in the country and the presence of established space research agencies and universities. In addition, commercial investments and government funding toward space activities have boosted the development of nanosatellites and microsatellites in the region. The nanosatellite and microsatellite market in Canada is anticipated to expand at a fast pace in the coming years thanks to efforts from the Canada Space Agency.
Asia Pacific is one of the most lucrative markets for nanosatellites and microsatellites. Technologically advanced countries such as China and Japan have significantly contributed to the development of nanosatellites and microsatellites in the recent past. Moreover, the shifting focus toward R&D and the continuous development of network infrastructure in Philippines, India, Australia, and Indonesia are likely to give the APAC market a major boost in the coming years. The urgent need for more effective national security measures has also played a key role in influencing the development and launch of nanosatellites and microsatellites.