Space Economics 2019: Business discovers small satellites

July 7, 2020

With the help of small satellites, business is beginning to conquer the space: more than half of small satellites are currently used for commercial purposes, however, by 2022 they will account for 70 percent of the market. This is mainly due to lower costs of satellite launch and venture capital fund investments in the sector. An even bigger breakthrough is expected with the take-up of the Internet of Things and the communication between machines. Lithuanian businesses and science are already getting interested in new opportunities in space. 

Helps machines communicate where cable and GSM networks are out of reach 

According to Laurynas Mačiulis, a doctoral student at Vilnius Gediminas Technical University (VGTU) and the head of the Satellite Systems Research Group at Antanas Gustaitis Aviation Institute, the businesses launch more and more small satellites every year and as a result the number of such satellites has grown exponentially in recent years.  The number of small satellites launched in 2018 was around 300, and it was almost three times more than in 2016. 

Earth observation continuous to be the most popular field of application for small satellites. They help to collect and monitor data on climate change, soil and ecosystem changes, crop conditions, the effects of natural and man-made cataclysms, etc.  These functions are currently performed by more than half (58%) of small satellites, with telecommunications being the fastest growing area.

"In the future, all smart devices and robots that will control and monitor our autonomous machinery, plants, cars, planes, cargo movements, etc., will generate large amounts of data that will be transmitted to service stations, the Internet, etc., i. e. to the end user. The machinery will also exchange this data with each other“.  “The researcher specifies that „in cities with developed terrestrial network infrastructure, there are no difficulties in data transmission. However, in remote and sparsely populated areas or, for example, at certain altitudes or in oceans where GSM networks do not work, there is a need for an alternative network. And as the researcher points out „satellites are best suited for this task” According to him, this is why the growing interest of business is observed in this field. 

The company SpaceWorks monitors the small satellite market and predicts that this market share, now at just 4%, will rise to 22% by 2022.  

L. Mačiulis has pointed out that together with his colleagues from VGTU, he is currently working on a technical feasibility study for one Lithuanian start-up that is interested in the use of satellites to provide services related to the Internet of Things. 

Investment: how much does it cost to launch a small satellite?

According to the researcher, today small satellites can perform essentially similar functions to the functions performed by large satellites. "The main advantage of SmallSats over conventional large satellites is lower production costs and shorter realisation period. This makes it possible to quickly and simultaneously launch a lot of satellites and develop a functional network of satellites that can provide global services. 

For example, 50-100 satellites equipped with Earth observation facilities and properly placed in the orbit can provide data every few hours or even more often. VGTU researcher says that usually one satellite passes a specific location above the Earth and can send a high-quality picture once a day. 

He calculates that the development of a single small satellite with a mass of 1-10 kg can cost anywhere between several hundred and half a million EUR, and the cost of the launching process is about USA $80 thousand per kg. The lightweight launchers that are currently being developed and tested promise to halve this price. L. Mačiulis points out “that the provision of global services usually requires a network with a large number of satellites and the costs include not only the development and the launching process of satellites, but also terrestrial infrastructure and network management. 

Lithuanian footprint in the space market 

 L. Mačiulis is convinced that the development of small satellites has destroyed the established image that space is a game arena for large and rich states. However, this niche, high value-added area, also requires significant investment, especially in human capital. When it comes to competition, the scientist is open: to compete successfully in the global space market is not easy, and the reality is relentless – whether you are a global player, or you are nothing. 

"The space industry includes many high-tech sectors and we are happy that Lithuania is increasingly working in the field of space research, fulfilling the orders of the European Space Agency. Photonics, optoelectronics, Earth observation technologies, geodesy are just some of the traditionally strong science fields in our country that can be applied in space. I would like to see more strong and innovative companies that can commercialize research results. The researcher is convinced that science should focus its efforts in the areas that are relevant for Lithuanian business and industry.   

VGTU hopes to fill in this niche by bringing together an interdisciplinary team for the construction and launch of another Lithuanian SmallSat.  "Our goal is not to develop the satellite itself. Our ambition is to create and test new technological innovations, conduct scientific experiments under real conditions, so that they could be commercialized in the future. For this we need proof that these technologies work in space”, says L. Mačiulis. This year for the achievements in the field of small satellites the researcher was awarded the nomination of Petras Vileišis which was established by the Lithuanian Confederation of Industrialists. 

 

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