Euroconsult, a global space market consulting firm, is forecasting a more than 300 percent spike in the small satellite market over the next decade. In the company’s latest report, it states that expanded capabilities have spurred demand to the tune of over 6,200 smallsats being launched over the next ten years. And while that total may not initially seem impressive, this represents a total market value of $30.1 billion, in contrast to the current value of $8.9 billion.
Using a cluster of smaller satellites that weigh hundreds of pounds instead of a single unit weighing thousands translates to a significant discount for entry into space exploration. This means more companies can be involved, and because these constellations, or groups of smaller satellites, are lighter, the launch prices are less expensive. This knocks down another significant barrier to entry.
According to the report, from a capabilities perspective, these smallsats have evolved to a point where they can perform missions that were previously only achievable by satellites weighing more than a half-ton. Smallsats can cover a range of applications, from observing and monitoring geographic changes and events to expanded broadband communications.
A little more than half of this $30 billion valuation is attributed to manufacturing. Although about one-quarter of satellite production is done in-house with highly customized features and functions, the remaining $12.8 billion will be up for grabs. This total does not account for those supplying the materials and components vital to surviving the harsh environment of space and collecting the targeted data.
Euroconsult states that the cut-off between in-house and commercial manufacturing seems to hit at about 110 pounds. The smaller units are typically done in a lab, with the larger being sourced to manufacturing firms. This trend will also provide new opportunities for companies specializing in private launch capabilities, such as Elon Musk’s SpaceX.