Asia Pacific CubeSat Market

Market Overview

The Asia Pacific CubeSat market size was valued at USD 12 million in 2021 and is projected to reach USD 89 million by 2031, registering a CAGR of 14.5% during the forecast period (2022-2031).

Highlights

•  The 1 to 3U segment dominated the market by size. 
•  Earth Observation and Traffic Monitoring dominated the market based on application.

A CubeSat is a compact satellite with a cubical shape that measures 10x10x10 cm3 - roughly the size of the popular Rubik's cube - and weighs approximately 1 kg. A CubeSat can be utilized as a single unit (1 U) or in groups of multiple units (1U, 2U, 3U, 6U, and 12U, among others). Cost-effective solutions have simplified the launch of missions into low-Earth orbit for commercial companies, non-profit organizations, and academic institutions.

These miniaturized satellites enable several scientific studies and technology demonstrations to be conducted in space cost-effectively, timely, and relatively simple. CubeSats are extensively utilized by researchers and experts worldwide for space exploration. CubeSats' small and lightweight dimensions suit them for rapid production and testing, making them an ideal and inexpensive tool for exploring emerging technologies and concepts.

Market Dynamics

Asia Pacific CubeSat Market Drivers

Extensive Demand for Low-Cost Nanosatellites

Comparatively less expensive than conventional satellites, nanosatellites possess the same or comparable capabilities. According to our estimates, traditional satellites can cost hundreds of millions of dollars, whereas a CubeSat can be constructed for approximately USD 100,000 and launched for many of the same missions as traditional satellites.

Additionally, nanosatellites are easier to construct. Due to their minimal cost and less stringent regulations, they can be constructed more quickly. In low-Earth orbit, nanosatellites typically have a lifecycle of no more than a couple of years before reentering the atmosphere and combusting. This reduces the need for risk management during the construction and launch phases.

Defense Sector to Propel the Use of CubeSat

Small satellites in lower earth orbit (LEO), such as CubeSat, are increasingly utilized by nations to advance their capabilities. CubeSats are smaller than their Geosynchronous Earth Orbit (GEO) counterparts, allowing for more launch options and cheaper deployment. Small satellite companies seek cost-effective methods for large-scale production, such as low-cost passives, to assist military forces in meeting this demand within a reasonable budget. In addition, the constellation is anticipated to include approximately 20 CubeSats with sensors and monitoring apparatus. The primary objective is to detect radio signals and frequencies so that aircraft and ship movements can be monitored from above.

Asia Pacific CubeSat Market Restraints

Lack of Launch Vehicles and High Related Expenses

The launch cost of a CubeSat is an entirely distinct matter, where total costs can increase significantly. The cost of launching a CubeSat depends on whether it is launched as part of a dedicated mission or as part of a ride-share. Moreover, the average market price of a dedicated launch varies based on the satellite's mass. Putting a satellite into low Earth orbit costs approximately USD 30,000 (approximately EUR 23,700) per kilogram.

Asia Pacific CubeSat Market Opportunities

Increase in Space Data Demand

The spectrum and scope of services that satellites could provide are limitless. The global demand for satellite services, such as surveillance for military, environmental, or public safety applications, navigation and positioning, vehicle tracking, and telecommunication, is developing rapidly. The telecommunications industry, which has utilized space for its services for several years and is a crucial component of the global infrastructure for communications, commercial and government data transmission, and applications, is expected to generate the most demand.

Benefits of Large Satellites

Small satellites with more intelligent and compact subsystems are replacing the need for large satellites and related infrastructure. Commercial satellite operators deploy smallsat constellations in LEO to provide global coverage with minimal latency. Small satellites are increasingly positioned in LEO constellations for earth observation (EO) and remote sensing to produce superior insights for comparable motives. Satellite entrepreneurs advance this trend through mass production, rocket ride-sharing with other missions, modular commercial-off-the-shelf (COTS) hardware, and standardized satellite buses. Satellite operators and proprietors can also reduce costs by vertically integrating satellite production.

Segmental Analysis

The Asia Pacific CubeSat market is segmented based on size and application.

By size, the market is categorized into 0.25U to 1U, 1 to 3U, 3U to 6U, 6U to 12U, and 12U and above.

The 1 to 3U segment dominates the market and is expected to grow at a CAGR of 14.3% during the forecast period.

The market is further segmented by application into earth observation and traffic monitoring, science, technology and education, space observation, and communication.

Earth observation and traffic monitoring dominated the market and is expected to register a CAGR of 13.6% over the forecast period.

Regional Analysis

The Asia Pacific CubeSat market is segmented based on the country into China, Japan, India, South Korea, Rest of Asia-Pacific. China dominates the market and is expected to expand at a CAGR of 14.7% during the forecast period.

As countries like Japan and India continue to launch small satellites aggressively for communication and navigation purposes, the Asia Pacific is expected to emerge as the fastest-growing regional market. Japan is pursuing techniques to produce small satellites and planes to address the demand for downsizing. Regardless of the scope of an initiative, countries like South Korea and Singapore have entered the CubeSat production industry to send their satellites into space.

As the uses for cube satellites multiply, more and more businesses are jumping into the market. Telecommunication, space-based IoT, weather prediction, asset tracking, military surveillance, etc., are just some of the many uses companies are finding for small satellites.

Recent Developments

• February 2019- Myriota partnered with Tyvak Nano-Satellite Systems Inc. to develop and launch multiple satellites.
• November 2019- Tyvak was one of five companies selected to be eligible to bid for the NASA Commercial Lunar Payload Services (CLPS).

Asia Pacific CubeSat Market Segmentation

By Size

• 0.25U to 1U
• 1 to 3U
• 3U to 6U
• 6U to 12U
• 12U and above

By Application

• Earth Observation and Traffic Monitoring 
• Science, Technology and Education 
• Space Observation
• Communication

 By Country

• China
• Japan
• India
• South Korea
• Rest of Asia-Pacific