Europe CubeSat Market

Market Overview

The Europe CubeSat market size was valued at USD 9 million in 2021 and is projected to reach USD 54 million by 2031, registering a CAGR of 12.1% 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). Since more than a decade ago, CubeSats have facilitated space launches. 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

Europe CubeSat Market Drivers

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.

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. A CubeSat-sized nanosat could cost between USD 150,000 and USD 1 million, the launch included, compared to USD 200 million to USD 1 billion for a full-sized satellite.

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.

Europe 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.

Europe CubeSat Market Opportunities

Technological Advancements in the CubeSat

NASA announced a new round of opportunities for CubeSat developers, including educational institutions, through the agency's CubeSat Launch Initiative (CSLI) to conduct scientific investigations and technology demonstrations in space and contribute to the agency's exploration objectives.

Small satellites, such as CubeSat, play a significant role in the agency's educational, scientific, and technological endeavors, such as planetary exploration, Earth observation, and fundamental Earth and space science. Laser communications, satellite-to-satellite communications, and autonomous movement are fundamental to developing cutting-edge NASA technologies. 

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.

Segmental Analysis

The European 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 12.2% 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 11.9% over the forecast period.

Regional Analysis

The market trend in Europe has been influenced by the economies of the United Kingdom, France, Germany, Italy, Spain, Russia, and the Rest of Europe's regional divisions. The increasing need for CubeSats in Italy may be traced back to the country's thriving satellite sector, which can be traced back to the plethora of competing space businesses.

Market expansion is being fueled by factors such as the increasing demand for CubeSats, the development of increasingly sophisticated electrical equipment for CubeSats, and the rising need for the shrinking of satellites. The European CubeSat market is expected to expand rapidly over the next few years as governments invest heavily in developing improved CubeSat subsystems like a laser communication system, solar electric propulsion system, and others for use in critical infrastructure protection, navigation, and communication.

Recent Developments

• January 2023- Planet Labs Inc. launched 36 SuperDove satellites, Flock 4y, on a SpaceX Falcon 9 rocket. Flock 4y is planned to launch on SpaceX's Transporter-6 mission from Space Launch Complex 40 in Cape Canaveral, Florida.
• July 2020- Firefly Aerospace, Inc. (Firefly), a provider of economical and dependable launch vehicles, spacecraft, and in-space services, announced the execution of a Launch Services Agreement with Innovative Space Logistics BV (ISILAUNCH), a launch services subsidiary of Netherlands based ISIS - Innovative Solutions in Space B.V. (ISISPACE).

Europe 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

• Germany
• UK
• France
• Russia
• Italy
• Spain
• Rest of Europe