An Assessment of the Market for Small Satellites

This study was sponsored by a grant from the Virginia Center for Innovative Technology's Space Research Fund, to provide an assessment of current activities in the design and development of small satellites and potential commercial markets for these satellites and the services they could provide. Our research methods included a review of: a) the history of the satellite industry, b) current activities of satellite manufacturers, c) complementary inputs to small satellites such as launchers and ground control, d) functional requirements that could be met using small satellites, e) potential users of small satellites, f) availability of various technologies, g) existing market projections, and h) other factors that could enable small satellites to be commercially successful. We also addressed potential limits of small satellite development and production including the difficulties of the satellite in providing the services required because of technological or political constraints, and the inability to exploit economies of scale or scope compared to current and anticipated methods of providing the service. The study was conducted through a review of the existing literature and interviews with satellite manufacturers and customers, with other industry officials, with government officials, and with academicians. The data contained in this report have largely been obtained from them. However, the conclusions are solely the responsibility of the authors.