The global small satellite market is expected to grow from $2.28 billion in 2016 to reach $7.66 billion by 2023 with a Compound Annual Growth Rate (CAGR) of 18 percent, according to Stratistics MRC’ latest global market outlook report. Rising demand for high-resolution imaging services, favorable costs, modified scope of applications and new technological advancements are some of the factors driving the market.

On the other hand, shortage of small satellite launch vehicles remains one of the major restraints restricting the market. However, Stratistics expects growing demand for small satellite in emerging countries to result in huge growth rate during the forecast period.

Based on the application segment, Earth Observation (EO) and meteorology leads the market globally with the biggest market share and is expected to grow with a high CAGR during the forecast period. Stratistics attributed the growth of this segment to usage of small satellites to test the capabilities of various technologies which are used in space.

By end user, the commercial sector has acquired the largest market share. Stratistics attributed the growth of this segment to the increasing demand for high-resolution imaging services, which is accompanied by high-speed communication services. North America accounted for largest market share followed by Asia Pacific.