Northern Sky Research

NSR Report: Constellations to Drive Smallsat Markets through next Decade

Tue 19, Dec 2017

Smallsat Launch Rates to Exceed 5,000

Cambridge, MA – NSR’s newly released Small Satellite Markets, 4th Edition (SSM4) report identifies growth across the 1-500 kg smallsat market with 5,000 satellites launching within the next decade, generating cumulative revenues of $25B in manufacturing and launch services. Constellations remain the strongest driver of market growth; 70% of satellites to launch will be part of such a group of 5 or more satellites with the same mission. North America and Asia present the largest near-term opportunities, building on well-developed satellite ecosystems and leveraging the growth prospects in Earth Observation, Communications, and Science applications.

2017 was a strong year for the smallsat market, making up for declining launch rates in 2015 and 2016 with over 300 satellites launched and several new systems commencing deployment. “More and more players across the value chain are looking to engage in the smallsat market, seeing an opportunity to leverage their existing business and capabilities in this rapidly evolving segment,” comments report author and NSR Senior Analyst Carolyn Belle. “As these players cement their offerings and look to build market share, competition will heighten, and today’s young market will begin to mature. The key question now facing the industry is, how many players can the market support, and how will M&A activity make its mark?”

Through this market maturation, a robust industry based on one-time projects and individual satellites will sustain activity through the ups and downs of constellation deployment and replenishment cycles. Siddharth Shihora, NSR Analyst and report co-author, noted “emerging constellations will be challenged to balance CAPEX, investment, and revenue generation, particularly for systems designed with rapid replenishment rates that generate constant CAPEX requirements.” NSR does not anticipate all systems currently in development to launch, with a forecasted success rate of less than 50% as operators seek the right response to myriad challenges.

About the Report

NSR’s proprietary database of small satellites, launch service providers, and platforms, complemented by years of in-depth discussions with industry stakeholders on trends and drivers, provides the basis for the most comprehensive view of the small satellite industry. Small Satellite Markets, 4th Edition (SSM4) leverages this expertise and market intelligence across verticals, regions, and operators within the 1-500 kg mass range to deliver an industry leading analysis on the current state of the market, including demand forecasts for each mass segment, application, and region over the coming decade. SSM4 is the must-have report for existing and emerging players and investors seeking to succeed in the rapidly evolving small satellite ecosystem.

For additional information on this NSR offering, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com  or call NSR at +1-617-674-7743.

About NSR

NSR is the leading global market research and consulting firm focused on the satellite and space sectors. NSR’s global team, unparalleled coverage and anticipation of trends with a higher degree of confidence and precision than the competition is the cornerstone of all NSR offerings. First to market coverage and a transparent, dependable approach sets NSR apart as the key provider of critical insight to the satellite and space industries. Contact us at info@nsr.com to discuss how we can assist your business.

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