Market Trends of North America Small Satellite Industry
This section covers the major market trends shaping the North America Small Satellite Market according to our research experts:
Military Segment to Register the Highest CAGR During the Forecast Period
Military satellites are used for two specific mission profiles - surveillance and reconnaissance. Military satellites are capable of providing continuous coverage of an area and can be used for early warning in case the launch of an intercontinental ballistic missile is detected. The sensors mounted on these satellites can also automatically sense nuclear explosions and determine the location of the detonation, while further conveying the essential information required for a strategic strike assessment. Previously, technologically advanced countries were pioneers in developing military satellites but with the advent of smart sensors and miniature satellites, many nations around the world have either developed their military satellite network or collaborates with their technology partners to access the technology as per their requirement. Several development projects are underway, and they may result in the creation of potential market opportunities for global players during the forecast period. For instance, the US Defense Advanced Research Projects Agency (DARPA) is developing a prototype line of cost-effective reconnaissance satellites, as part of a program called "Blackjack". The program aims to integrate reconnaissance and communications payloads into standard commercial satellites, owing to their higher launch rate to accelerate the pace of formation of a constellation. The success of the program will influence the US' space program, which aims to set up a low Earth orbit (LEO) constellation of around 90 satellites by 2022. On a similar note, in November 2018, Dynetics Inc. (Dynetics) was selected for conducting hardware-in-the-loop testing and simulation for the US Army Space and Missile Defense Command/Army Forces Strategic Command (USASMDC/ARSTRAT) Technical Center Program named Gunsmoke-L. As of May 2020, DARPA had plans to launch the first experimental satellites of the Blackjack program in late 2020 and early 2021. Such developments are envisioned to drive the growth of the military segment of the North American small satellite market during the forecast period.
The United States to Dominate the Market in the Upcoming Period
The small satellite industry in the US is bolstered by the presence of a robust framework for designing and manufacturing small satellites that are custom designed to serve specific application profiles. Thus, several small satellites are launched by the US-based operators each year for satiating the demand for such satellites for a plethora of applications. For instance, besides earth observation and communication, several small satellite programs are aimed toward normal matter surveying of galaxies, planets, and stars. On this note, in July 2018, NASA launched the HaloSat to map the distribution of hot gas in the Milky Way galaxy. The HaloSat is built by Blue Canyon Technologies Inc., and it is based on the XB1 bus and the L3 Cadet radio. The payload consists of three XR-100SDD silicon drift detectors (SDDs), X-ray collimator, anti-coincidence shield, and associated electronics. The diversified application portfolio is expected to create additional demand for small satellites in the United States during the forecast period, in order to replace the conventional full-scale satellites as small satellites offer better performance to cost ratio.
