PORTLAND, Ore., Feb. 3, 2021 /PRNewswire/ -- Allied Market Research published a report, titled, "CubeSat Marketby Size (0.25U to 1U, 1 to 3U, 3U to 6U, 6U to 12U, 12U and Above), Application (Earth Observation & Traffic Monitoring, Science Technology and Education, Space Observation, Communication, and Others), End User (Government and Military, Commercial, and Non-profit Organizations), and Subsystem (Payloads, Structures, Electrical Power Systems, Command, and Data Handling, Propulsion Systems, Attitude Determination, and Control Systems, and Others): Global Opportunity Analysis and Industry Forecast, 2020–2027." According to the report, the global CubeSat industry garnered $210.1 million in 2019, and is expected to reach $491.3 million by 2027, witnessing a CAGR of 15.1% from 2020 to 2027.
Smaller in size and weight as compared to conventional satellites, rise in demand in commercial applications, and emergence of new application areas drive the growth of the global CubeSat market. However, limitations regarding payload accommodation and strict government regulations hinder the market growth. On the other hand, developments in technologies to improve capabilities and rise in demand for space data present new opportunities in the coming years.
Many countries have lowered their budgets of space programs as the focus shifted on the pandemic response and recovery measures.
The lockdown across the nations enforced manufacturing facilities of the CubeSat to close down or postpone the opening of the facilities.
Despite the impact of Covid-19 on the sector, there has been increase in participation of private players to carry out operations moderately and several CubeSats were launched in 2020.
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The earth observation and traffic monitoring segment to maintain its leadership status by 2027
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 the government in research and scientific experiments.
The commercial segment to maintain its lead position during the forecast period
Based on end user, the commercial segment contributed to the largest market share, accounting for more than half of the global CubeSat market in 2019, and will maintain its lead position during the forecast period. In addition, this segment is estimated to witness the fastest CAGR of 15.6% from 2020 to 2027. This is attributed to the increase in demand for obtaining high-resolution earth imaging and communication services. The report also analyzes the segments including government & military and non-profit organizations.
North America to maintain its dominance in terms of revenue by 2027
Based on region, North America held the highest share in 2019, accounting for more than half of the global CubeSat market, and will maintain its dominance in terms of revenue by 2027. This is attributed to rise in utilization for defense missions and commercial exploration along with increase in investments in R&D, product development, and technological advancements. However, Asia-Pacific is projected to maintain the largest CAGR of 16.6% during the forecast period, owing to continuous investment in development and procurement of CubeSat to raise their presence in the space.
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