Middle East and Africa CubeSat Market

Market Overview

The Middle East and Africa CubeSat market size was valued at USD 2 million in 2021 and is projected to reach USD 11 million by 2031, registering a CAGR of 10.9% 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.

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

Middle East and Africa 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. 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.

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.

Middle East and Africa 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.

Middle East and Africa 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 & government data transmission, and applications, is expected to generate the most demand.

Segmental Analysis

The Middle East and Africa 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 9% 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 9.2% over the forecast period.

Regional Analysis

The Middle East and Africa CubeSat market is segmented based on the country into GCC Countries, South Africa, Egypt, the Rest of the Middle East and Africa. The GCC Countries dominate the market and are expected to grow at a CAGR of 9.4% during the forecast period. 

As a low-cost option for launching satellites and carrying out technical demos, scientific research, and other missions, CubeSats have drastically altered the space exploration industry. CubeSats have been widely used in various sectors, including commercial enterprises, government and military organizations, and nonprofit groups.

They are inexpensive for facilitating missions launched into low-Earth orbit by commercial firms, nonprofits, and academic institutions. Numerous scientific investigations and technology demonstrations are now feasible in space thanks to the miniaturization of satellites. Many scientists and engineers worldwide use CubeSats to further their space exploration efforts. Due to their compact size and lightweight, CubeSats are easily manufactured and tested, making them a cost-effective tool for investigating new technologies and concepts.

Recent Developments

• February 2023- Vyoma has partnered with EnduroSat to enhance the safety of satellites in orbit, thereby making space safer. The two companies have signed a Memorandum of Understanding delineating how they will work together to enhance the sustainability of space activities.
• October 2022- Champaign-UrbanaUrbana Aerospace (CUA) has developed various innovative micro propulsion systems for future integration and flight on micro- and nanosatellites (also known as CubeSats). Avoiding collisions and deorbiting satellites substantially contribute to preventing the escalation of the orbital debris problem.
• November 2019- Tyvak was one of five companies selected to be eligible to bid for the NASA Commercial Lunar Payload Services (CLPS).

Middle East and Africa 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

• GCC Countries
• South Africa
• Egypt
• Rest of Middle East and Africa