CubeSat Market to reach $2.8 Billion by 2030; The Cost-Effectiveness and Accessibility, Growing Demand for Earth Observation and Remote Sensing, Advancements in Miniaturized Technologies, Increased Government and Private Investments, Rising Use in Co

The CubeSat Market size is estimated to reach $2.8 Billion by 2030, growing at a CAGR of 22.1% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “CubeSat Market – By Size (0.25 U-1 U, 1 U, 2 U, 3 U, 6 U, 12 U & Above), By Subsystem (Attitude Determination and Control System, Command Data Handling, Electrical Power Systems, Payloads, Power System, Propulsion Systems, Solar Panels Antenna Systems, Structure, Telemetry, Tracking, and Command, Thermal Control System, Others), By Application (Communication, Earth Observation Traffic Monitoring, Meteorology, Science Technology and Education, Space Observation, Others), By End User (Academic, Commercial, Defense, Government, Non-profit Organizations, Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”

Several factors help drive the CubeSat global market such as cost effectiveness and accessibility, making CubeSats a very affordable choice for a wide range of missions. This market is further fuelled by growing demand for Earth observation and remote sensing, as organizations now strive to monitor environmental changes using small satellites. In addition, CubeSat research and development continues to be supported by increasing government and private investments, which further promote innovation in the field. The demand for CubeSats is also being driven by the growing utilization of CubeSats in communication and IoT applications owing to the ability of CubeSats to offer scalable and efficient means of global connectivity and data transfer. 

North America accounted for the largest share of 51% of the CubeSat Market in 2023 The CubeSat global market is led by North America, specifically the United States, thanks to strong government investments and strategic space initiatives. While the U.S. contributes 63% of the world’s space expenditure in 2023, NASA’s 2025 U.S. federal budget proposal, which would allot $25.4 billion, a 2% increase over 2024. In addition, Commercial satellite broadband and narrowband services are proving to be an important bridge over the digital divide with more than 2 million users nationwide depending on satellite for their essential communication services, according to the 2023 The Voice of the Satellite Industry report by the Satellite Industry Association (SIA). Critical 5G backhaul and direct to device services such as in Apple and Bullitt devices are supported by satellite networks. The report further states, in the past five years, satellite broadband subscriptions have grown by 83% and remote sensing data revenue by approximately 50%, highlighting the necessity for additional spectrum. Furthermore, the growing demand for communications on the move across land, air and maritime applications, necessitates significant capacity to support smart transportation, safety functions and entertainment services.

Cost efficiency and accessibility is a major driver in the CubeSats Global Market as these small satellites are cost efficient compared to the traditional large satellite counterparts. Student built CubeSats can cost a few thousand dollars, and while commercial small satellites are more expensive, they are still far less expensive than multi-million or billion-dollar large satellites, according to NanoAvionics. Short development cycles and standardised designs further decreases expenses, and teams can use pre-proven, commercially readily available components without extensive testing. Also, manufacturing costs are decreased by commercial off the shelf (COTS) technology and high-volume production. By doing so, companies can get a spot at a fraction of the cost, sometimes even below $150,000 through rideshare programs like SpaceX. Widespread adoption in the CubeSat market is driven by these efficiencies in development, launch, and operational costs. 

The CubeSat market is pushed forward by the increasing need for Earth observation and remote sensing capabilities. For instance, NASA and other organizations around the world, are launching missions to monitor changes in Earth's landscapes and environmental health. One such example is the NASA-ISRO Synthetic Aperture Radar (NISAR), which will map land and ice shifts every 12 days, providing information about the evolving surface of Earth. These observations are critical data for climate change research, natural disaster management and agriculture optimization. Meanwhile, NASA partners include JPSS-4, a mission that improves weather prediction accuracy; and the Multi-Angle Imager for Aerosols (MAIA), which measures air quality and the impact of pollution on health. CubeSats continue to play a crucial role as affordable, accessible and flexible solutions in the growth of the Earth observation mission market, with a continuous development of Earth observation missions. 

Key companies profiled in the CubeSat Market are Lockheed Martin Corporation, RTX, SpaceX, GOMspace, AAC Clyde Space Inc, SERENUM, a.s, Exobotics Ltd, Thales Alenia Space, EnduroSat, NanoAvionics and others.

Small Satellite Market - The Small Satellite Market size is analyzed to grow at a CAGR of 18.2% during the forecast 2021-2026 to reach $8.2 billion. This market's growth is driven by increasing demand for Earth observation, advancements in satellite miniaturization, and rising adoption of small satellites for communication and remote sensing applications. The expansion of satellite-based services in agriculture, disaster monitoring, and defense further boosts this market's potential.

Satellite Communication Market - The Market for Satellite Communication is projected to reach $15.18 billion by 2030, progressing at a CAGR of 9.4% from 2024 to 2030. Market growth is fueled by the increasing demand for reliable, high-speed connectivity in remote areas, advancements in satellite technology, and growing applications in maritime, aviation, and defense. The expansion of satellite-based Internet services also contributes significantly to this sector's growth.

Satellite Manufacturing Market - The Global Satellite Manufacturing Market is estimated to reach $24.0 billion by 2026, growing at a CAGR of 3.2% during 2021-2026. Key factors driving this market include the rising demand for communication, Earth observation, and navigation satellites, as well as advancements in manufacturing technologies that allow for faster, cost-effective production of satellites. The demand for new satellite constellations to support global broadband networks further propels growth in this market.