Market Overview
| Study Period | 2017 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 162.2 Billion |
| Market Size (2030) | USD 237 Billion |
| Growth Rate (2025 - 2030) | 7.88% CAGR |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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North America Small Satellite Market Analysis by Mordor Intelligence
The North America Small Satellite Market size is estimated at 162.2 billion USD in 2025, and is expected to reach 237 billion USD by 2030, growing at a CAGR of 7.88% during the forecast period (2025-2030).
The North American small satellite industry is undergoing a revolutionary transformation driven by technological advancements in miniaturization and enhanced capabilities. Private companies are leading innovation in satellite manufacturing, with SpaceX demonstrating a remarkable production capacity of 120 satellites per month. The integration of artificial intelligence, machine learning, and advanced materials has enabled the development of more sophisticated and efficient satellite systems. This technological evolution has resulted in smaller satellites capable of performing complex tasks previously reserved for larger spacecraft, while maintaining high reliability and performance standards. The industry's progress is further evidenced by the widespread adoption of additive manufacturing techniques, which have significantly reduced production costs and accelerated manufacturing timelines.
The commercial space sector has witnessed unprecedented growth, particularly in satellite-based internet connectivity solutions. SpaceX's Starlink network has achieved significant market penetration with over 250,000 active user terminals in operation, demonstrating the growing demand for satellite communication services. In December 2022, the Federal Communications Commission granted SpaceX permission to launch 7,500 next-generation Starlink satellites, while Amazon's Kuiper Systems secured approval to deploy 3,236 satellites by 2029. These developments highlight the industry's shift toward large-scale constellation satellite deployments for global connectivity solutions, driving innovation in satellite design and manufacturing processes.
Military and defense applications continue to shape the market landscape, with increasing emphasis on enhanced communication capabilities and surveillance systems. The collaboration between Raytheon Technologies and Boeing's Millennium Space Systems to develop prototype Missile Track Custody MEO satellite payload for the US Space Force exemplifies the growing military investment in space technology. The integration of space-based systems with traditional military infrastructure has become crucial for modern warfare capabilities, driving demand for specialized satellite solutions. Advanced satellite technologies are being leveraged for improved signal strength, enhanced data transfer capabilities, and expanded coverage areas for military operations.
Research and development initiatives are fostering innovation across the industry, supported by substantial government funding. NASA's allocation of approximately USD 26 billion in 2023, representing a 5.6% increase from the previous year, underscores the continued commitment to space exploration and technological advancement. Private companies and research institutions are actively developing new propulsion systems, including electric and gas-based technologies, to improve satellite maneuverability and longevity. The industry's focus on sustainable space operations has led to innovations in debris mitigation technologies and the development of environmentally friendly propulsion systems, ensuring the long-term viability of satellite operations in increasingly crowded orbital spaces.
North America Small Satellite Market Trends and Insights
A trend of using better fuel and operational efficiency has been witnessed
- Satellites are getting smaller nowadays. A small satellite can do almost everything as a conventional satellite at a fraction of the cost, thus making the building, launching, and operation of the small satellite constellations increasingly viable. The reliance on small satellites has also been growing exponentially. Small satellites typically have shorter development cycles, smaller development teams, and cost much lesser for launch. Revolutionary technological advancements facilitated the miniaturization of electronics, which pushed the invention of smart materials, reducing the satellite bus size and mass over time for manufacturers.
- Satellites are classified according to mass. The satellites with a mass of less than 500 kg are considered small satellites, and around 2,900+ small satellites were launched in the region during the historical period. There is a growing trend toward small satellites in the region due to their shorter development time, which can reduce overall mission costs. They have significantly reduced the time required to obtain scientific and technological results. Small spacecraft missions tend to be flexible and more responsive to new technological opportunities or needs. The small satellite industry in the United States is supported by the presence of a robust framework for designing and manufacturing small satellites tailored to serve specific application profiles. The number of small satellite operators in North America is expected to surge during 2023-2029 due to the growing demand in the commercial and military space sectors.
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The increasing space expenditures of different space agencies are expected to impact the North American small satellite market positively
- In North America, government expenditure for space programs hit a record of approximately USD 103 billion in 2021. The region is the epicenter of space innovation and research, with the presence of the world's biggest space agency, NASA. In 2022, the US government spent nearly USD 62 billion on its space programs, making it the highest spender on space in the world.
- The United States is one of the leading countries globally in terms of satellite development and launches. Owing to the immense potential in several aspects of commercial and defense applications, the use of satellites has gained substantial acceptance in the country. The country has many satellites orbiting in space to serve its commercial and defense needs. In December 2022, Planet Labs announced that it had manufactured 36 SuperDove satellites, scheduled for launch using SpaceX's Falcon-9 rocket. Each SuperDove satellite weighs approximately 6 kg, and the data collected by these satellites are expected to provide organizations in agriculture, government, civilian agencies, and other industries to make informed decisions.
- In November 2022, NASA announced that it is planning to launch four CubeSats under the TROPICS mission. These satellites weigh approximately 5.3 kg and are developed to provide rapidly updating observations of storm intensity, as well as the horizontal and vertical structures of temperature and humidity within the storms and in their surrounding environment. The data collected is expected to help scientists better understand the processes that affect these high-impact storms, ultimately leading to improved modeling and prediction.
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Segment Analysis: Application
Communication Segment in North America Small Satellite Market
The communication segment dominates the North America small satellite market, commanding approximately 95% market share in 2024. This substantial market position is driven by the increasing demand for high-speed data transmission across the United States and Canada. The segment's growth is primarily fueled by the rising popularity of streaming services, online gaming, and other data-intensive applications that are putting pressure on existing network infrastructure. Major private companies in North America, including Lockheed Martin, Telesat, and SpaceX, are focusing on enhancing connectivity for various sectors, including the transportation industry, IoT devices, fleet management, and remote maintenance. The segment also benefits from the emphasis on better infrastructure development for mobile backhaul operations and direct-to-consumer market services. The integration of satellite communication technology is pivotal in supporting these advancements.
Earth Observation Segment in North America Small Satellite Market
The Earth observation segment is experiencing rapid growth in the North America small satellite market, with an expected growth rate of approximately 17% during 2024-2029. This growth is primarily driven by the increasing need for better observation satellites and the expanding range of applications across various industries. Companies worldwide are investing in improving existing earth observation satellite capabilities to provide enhanced services to users on the Earth's surface. The segment's expansion is supported by a variety of use cases, including environmental monitoring, urban development, border and maritime security, forestry management, and disaster management such as drought and flood forecasting. These applications are encouraging regional governments to adopt satellite services, thereby driving the demand for earth observation satellite services.
Remaining Segments in Application
The remaining segments in the North America small satellite market include navigation, space observation, and other specialized applications. The navigation segment serves critical functions in military operations, commercial transportation, and civilian applications, while the space observation segment focuses on studying celestial bodies and conducting space research. The other applications segment encompasses various specialized uses such as technology demonstration and scientific research. These segments collectively contribute to the market's diversity and demonstrate the versatility of small satellite technology in addressing different space-based needs and requirements across various sectors.
Segment Analysis: Orbit Class
LEO Segment in North America Small Satellite Market
The Low Earth Orbit (LEO) segment dominates the North American small satellite market, commanding approximately 99% of the total market share in 2024. This overwhelming dominance is primarily driven by the increasing adoption of LEO satellite in modern communication technologies and Earth observation applications. The segment's growth is further bolstered by major private companies like SpaceX, Blue Origin, and Boeing investing heavily in LEO satellite technology and driving innovation in the industry. The Canadian government's commitment to ensuring nationwide high-speed internet coverage by 2030 has also contributed to the segment's growth, with companies like Starlink Canada and Telesat working on LEO satellite constellations to offer network services. Additionally, NASA's continued focus on LEO missions, including the deployment of CubeSats for storm intensity monitoring and environmental research, demonstrates the segment's crucial role in both commercial and scientific applications.
MEO Segment in North America Small Satellite Market
The Medium Earth Orbit (MEO) segment is experiencing rapid growth in the North American small satellite market, with projections indicating an impressive growth rate of approximately 31% during the forecast period 2024-2029. This remarkable growth is driven by the segment's increasing importance in global navigation systems and satellite-based communication systems. The military's growing reliance on MEO satellites, due to their advantages such as increased signal strength, improved communications capabilities, and greater coverage area, is a key factor propelling this growth. Recent developments in MEO satellite technology, particularly in the defense sector, have led to enhanced applications in military communications and navigation services. Companies like Raytheon Technologies and Boeing's Millennium Space Systems are actively developing advanced MEO payloads for critical applications such as hypersonic missile detection, further driving innovation and growth in this segment.
Remaining Segments in Orbit Class
The Geostationary Earth Orbit (GEO) segment, while historically significant for communication satellites, shows an intermittent pattern of activity in the small satellite market. GEO satellites, positioned at approximately 35,786 kilometers above the Earth's equator, continue to play a vital role in specific applications such as weather monitoring and long-range communications. However, the segment's development in the small satellite market is characterized by periodic launches rather than continuous deployment, influenced by factors such as mission-specific requirements and technological advancements in satellite miniaturization. The United States maintains its leadership in GEO satellite technology, particularly for space observation and communication applications, though the focus has largely shifted to other orbital classes for small satellite deployments.
Segment Analysis: End User
Commercial Segment in North America Small Satellite Market
The commercial segment dominates the North American small satellite market, accounting for approximately 97% of the total market value in 2024. This substantial market share is driven by the increasing adoption of satellite technology across various commercial applications, including telecommunications, Earth observation, and internet connectivity services. Private companies like SpaceX, Blue Origin, and other commercial operators are significantly investing in satellite technology development and deployment. The segment's growth is further supported by the rising demand for high-speed data transmission, streaming services, online gaming, and other data-intensive applications that require robust satellite infrastructure. Commercial satellite operators are also expanding their services to cater to the transportation industry, providing connectivity solutions for ships, trains, and planes, while simultaneously developing communication backbones for IoT devices and fleet management systems. The integration of satellite communication systems is essential in meeting these demands.
Military & Government Segment in North America Small Satellite Market
The military and government segment is experiencing significant growth in the North American small satellite market, projected to expand at nearly 11% CAGR from 2024 to 2029. This growth is primarily driven by increasing defense spending and the growing importance of the US Space Force in satellite communications. The segment's expansion is fueled by the military's increasing reliance on satellites for strategic communication systems, tactical data links, and modern network-centric battle force capabilities. Military C4ISR systems are progressively incorporating higher levels of satellite-based architecture, while the adoption of geospatial systems for enhanced monitoring and faster response times is accelerating. The US Armed Forces are actively integrating space systems with air, land, and sea platforms, recognizing the critical role of satellites in modern military operations. Additionally, collaborations between the US Space Force and major defense companies for developing key projects such as missile tracking systems are further propelling the segment's growth.
Remaining Segments in End User Segmentation
The remaining segment in the North American small satellite market comprises satellites utilized by research institutions, colleges, and non-governmental organizations. These organizations play a crucial role in advancing space-related research, technology development, and Earth observation capabilities. Technical research institutes are actively developing satellites for various scientific purposes, while universities are collaborating with space agencies on innovative satellite projects. The segment is supported by dedicated funding from regional governments and private sector entities for research and innovation in the space industry. These institutions are particularly focused on developing experimental satellites for testing new technologies and conducting scientific research, contributing to the overall advancement of satellite technology and applications in North America.
Segment Analysis: Propulsion Tech
Liquid Fuel Segment in North America Small Satellite Market
Liquid fuel propulsion systems dominate the North American small satellite market, commanding approximately 73% market share in 2024. This significant market position is attributed to liquid propulsion systems offering higher specific impulses compared to other propulsion technologies, resulting in higher efficiency and longer operational life for satellites. The segment's dominance is further strengthened by its ability to precisely control thrust levels and throttle engines, allowing for optimized maneuvers and efficient fuel usage, which enables extended mission durations and orbital adjustments. Major market players and space agencies continue to invest heavily in satellite propulsion technology, focusing on innovations that enhance efficiency while reducing manufacturing costs. The segment is primarily driven by increasing investments in satellite launches, growing efforts to reduce carbon footprint using alternate fuels, and technological advancements aimed at improving fuel efficiency.
Gas Based Segment in North America Small Satellite Market
The gas-based propulsion segment is emerging as the fastest-growing segment in the market, projected to grow at approximately 13% during 2024-2029. This remarkable growth is driven by the technology's high efficiency, controllability, reliability, and long lifespan, making it an ideal choice for various space missions. Cold gas propulsion technology, which uses compressed gas as a propellant, is gaining significant traction in various space applications, including satellite and spacecraft propulsion, as well as scientific research and exploration. The segment's growth is further fueled by innovations in cold gas thrusters that are compatible with inert gases to support thrust, attitude control, and momentum transfer applications. These systems are particularly valuable for satellites operating in different orbit classes, including geostationary orbit, low Earth orbit, polar orbit, and Sun-synchronous orbit, contributing to their increasing adoption in the market.
Remaining Segments in Propulsion Tech
The electric propulsion segment represents another significant technology in the North American small satellite market. This technology is particularly valuable for its ability to provide thrust at high exhaust velocities, which significantly reduces the propellant required for space missions compared to conventional methods. Electric propulsion systems are increasingly being adopted for various applications, including station-keeping for commercial communication satellites and main propulsion for space science missions. The emergence of green emission initiatives has encouraged the adoption of these environment-friendly propulsion technologies, while the surge in miniaturized electronics and smart manufacturing materials has led to the development of more efficient and compatible electric propulsion systems for small satellites. The development of the satellite bus is crucial in integrating these propulsion systems effectively.
Competitive Landscape
Top Companies in North America Small Satellite Market
The North American satellite market is witnessing significant developments driven by major players like SpaceX, Capella Space, Ball Corporation, LeoStella, and Planet Labs. Companies are heavily investing in research and development to advance satellite miniaturization technologies, improve propulsion systems, and enhance power capabilities. The industry is characterized by strategic agreements and partnerships, particularly for launch services and technology development. Operational agility is demonstrated through rapid satellite manufacturing and deployment capabilities, with companies adopting innovative manufacturing processes to accelerate production while lowering costs. Product innovation focuses on developing more capable and cost-effective satellites, with an emphasis on improved imaging capabilities, communication systems, and data analytics solutions. Market leaders are expanding their infrastructure and manufacturing facilities to meet growing demand, while also investing in ground station networks and data processing capabilities.
Consolidated Market with Strong Growth Potential
The North American small satellite market exhibits a highly consolidated structure, dominated by a mix of established aerospace conglomerates and specialized small satellite company manufacturers. The top five companies command a substantial market share, with SpaceX maintaining a dominant position through its Starlink constellation project. The market is characterized by vertical integration, where major players control multiple aspects of the value chain, from satellite manufacturing to launch services and ground operations. Strategic partnerships and collaborations between commercial entities and government agencies, particularly NASA and defense departments, play a crucial role in market dynamics.
The industry has witnessed several strategic acquisitions and mergers aimed at expanding technological capabilities and market reach. Companies are increasingly focusing on developing specialized expertise in areas such as Earth observation, communication systems, and space-based data services. New entrants face significant barriers due to high capital requirements and the technical expertise needed for satellite manufacturing. The market structure encourages collaboration between established players and innovative startups, leading to technology transfer and market consolidation through strategic partnerships and acquisitions.
Innovation and Adaptability Drive Market Success
Success in the North American small satellite market increasingly depends on companies' ability to innovate while maintaining cost competitiveness. Incumbent players must focus on continuous technological advancement, particularly in areas such as satellite miniaturization, improved power systems, and enhanced communication capabilities. Building strong relationships with government agencies and commercial customers remains crucial for maintaining market position. Companies need to develop flexible manufacturing capabilities to accommodate varying customer requirements and adapt to changing market demands. Investment in research and development, particularly in emerging technologies like artificial intelligence and advanced materials, will be essential for maintaining a competitive advantage.
For contenders looking to gain market share, focusing on specialized market segments and developing unique technological capabilities offers the most promising path forward. Building strategic partnerships with established players for launch services and distribution channels can help overcome entry barriers. Companies must also consider regulatory compliance and space sustainability requirements, as these factors increasingly influence market access and customer preferences. The ability to offer integrated solutions, combining satellite manufacturing with data analytics and value-added services, will become increasingly important for market success. Risk mitigation through diversified customer bases and application areas will be crucial for long-term sustainability in the market.
North America Small Satellite Industry Leaders
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Ball Corporation
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Capella Space Corp.
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LeoStella
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Planet Labs Inc.
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Space Exploration Technologies Corp
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- April 2022: Swarm Technologies 12 “picosatellites” on the Transporter 4 mission for low-data-rate communications network have been launched.
- April 2022: The company expanded its constellation from 12 to 14 high-resolution satellites following the successful RocketLab launch. The rocket launched BlackSky 16, and 17 satellites.
- February 2022: In February 2022, 49 more Starlink internet satellites are launched by SpaceX's Falcon 9 rocket.
North America Small Satellite Market Report Scope
Communication, Earth Observation, Navigation, Space Observation, Others are covered as segments by Application. GEO, LEO, MEO are covered as segments by Orbit Class. Commercial, Military & Government are covered as segments by End User. Electric, Gas based, Liquid Fuel are covered as segments by Propulsion Tech.
Application
| Communication |
| Earth Observation |
| Navigation |
| Space Observation |
| Others |
Orbit Class
| GEO |
| LEO |
| MEO |
End User
| Commercial |
| Military & Government |
| Other |
Propulsion Tech
| Electric |
| Gas based |
| Liquid Fuel |
| Application | Communication |
| Earth Observation | |
| Navigation | |
| Space Observation | |
| Others | |
| Orbit Class | GEO |
| LEO | |
| MEO | |
| End User | Commercial |
| Military & Government | |
| Other | |
| Propulsion Tech | Electric |
| Gas based | |
| Liquid Fuel |
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Market Definition
- Application - Various applications or purposes of the satellites are classified into communication, earth observation, space observation, navigation, and others. The purposes listed are those self-reported by the satellite’s operator.
- End User - The primary users or end users of the satellite is described as civil (academic, amateur), commercial, government (meteorological, scientific, etc.), military. Satellites can be multi-use, for both commercial and military applications.
- Launch Vehicle MTOW - The launch vehicle MTOW (maximum take-off weight) means the maximum weight of the launch vehicle during take-off, including the weight of payload, equipment and fuel.
- Orbit Class - The satellite orbits are divided into three broad classes namely GEO, LEO, and MEO. Satellites in elliptical orbits have apogees and perigees that differ significantly from each other and categorized satellite orbits with eccentricity 0.14 and higher as elliptical.
- Propulsion tech - Under this segment, different types of satellite propulsion systems have been classified as electric, liquid-fuel and gas-based propulsion systems.
- Satellite Mass - Under this segment, different types of satellite propulsion systems have been classified as electric, liquid-fuel and gas-based propulsion systems.
- Satellite Subsystem - All the components and subsystems which includes propellants, buses, solar panels, other hardware of satellites are included under this segment.
| Keyword | Definition |
|---|---|
| Attitude Control | The orientation of the satellite relative to the Earth and the sun. |
| INTELSAT | The International Telecommunications Satellite Organization operates a network of satellites for international transmission. |
| Geostationary Earth Orbit (GEO) | Geostationary satellites in Earth orbit 35,786 km (22,282 mi) above the equator in the same direction and at the same speed as the earth rotates on its axis, making them appear fixed in the sky. |
| Low Earth Orbit (LEO) | Low Earth Orbit satellites orbit from 160-2000km above the earth, take approximately 1.5 hours for a full orbit and only cover a portion of the earth’s surface. |
| Medium Earth Orbit (MEO) | MEO satellites are located above LEO and below GEO satellites and typically travel in an elliptical orbit over the North and South Pole or in an equatorial orbit. |
| Very Small Aperture Terminal (VSAT) | Very Small Aperture Terminal is an antenna that is typically less than 3 meters in diameter |
| CubeSat | CubeSat is a class of miniature satellites based on a form factor consisting of 10 cm cubes. CubeSats weigh no more than 2 kg per unit and typically use commercially available components for their construction and electronics. |
| Small Satellite Launch Vehicles (SSLVs) | Small Satellite Launch Vehicle (SSLV) is a three-stage Launch Vehicle configured with three Solid Propulsion Stages and a liquid propulsion-based Velocity Trimming Module (VTM) as a terminal stage |
| Space Mining | Asteroid mining is the hypothesis of extracting material from asteroids and other asteroids, including near-Earth objects. |
| Nano Satellites | Nanosatellites are loosely defined as any satellite weighing less than 10 kilograms. |
| Automatic Identification System (AIS) | Automatic identification system (AIS) is an automatic tracking system used to identify and locate ships by exchanging electronic data with other nearby ships, AIS base stations, and satellites. Satellite AIS (S-AIS) is the term used to describe when a satellite is used to detect AIS signatures. |
| Reusable launch vehicles (RLVs) | Reusable launch vehicle (RLV) means a launch vehicle that is designed to return to Earth substantially intact and therefore may be launched more than one time or that contains vehicle stages that may be recovered by a launch operator for future use in the operation of a substantially similar launch vehicle. |
| Apogee | The point in an elliptical satellite orbit which is farthest from the surface of the earth. Geosynchronous satellites which maintain circular orbits around the earth are first launched into highly elliptical orbits with apogees of 22,237 miles. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the historical and forecast years have been provided in revenue and volume terms. For sales conversion to volume, the average selling price (ASP) is kept constant throughout the forecast period for each country, and inflation is not a part of the pricing.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms.
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