CubeSats orbiting Earth. Photo: ESA Medialab

Analyst firm Research and Markets estimates the satellite payloads market to be valued at $11.84 billion in 2017, and projects it will reach $18.15 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 8.92 percent during the forecast period. Increased demand for hosted payloads, satellite miniaturization, and reducing costs of satellites are factors the firm expects to fuel the growth of the satellite payloads market. However, high Research and Development (R&D) costs and the scarce intellectual asset may act as restraints for the growth of the satellite payloads market.

Based on orbit type, Research and Markets estimates the Low Earth Orbit (LEO) segment to lead the satellite payloads market during the forecast period. Satellite payloads designed for LEO are mainly used for Earth Observation (EO), remote sensing, and mobile and telecommunication services due to lower latency.

Based on payload type, the firm estimates the communication payload segment market during the forecast period. This payload type, used for transmitting highly critical data, is used in the telecommunication and broadcasting industries on a larger scale. However, Research and Markets projects the imaging payload segment to witness the highest growth during the forecast period. This payload includes cameras and radars, which aid in capturing images and data for remote sensing during earth observation, surveillance, and mapping.

Based on application, the firm predicts the telecommunications segment to dominate during the forecast period. Owing to the increase in R&D activities, communication-related missions are expected to offer enhanced quality communication systems with the help of highly sophisticated miniaturized on-board nano, micro, and mini subsystems.