Sky and Space Global poised to reach new heights in a booming ‘small satellite’ market
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Special report: Nano satellite maker Sky and Space Global is set to capitalise on the back of a booming ‘small satellite’ market that’s expected to reach $70 billion in revenue by 2030.
A new report from US consulting firm Frost & Sullivan has found that the launch demand for small satellites will hit 11,740 by 2023, with the revenue from the sector to exceed $70 billion by the end of that decade.
Current service providers in the field such as SpaceX, Roscosmos, Rocket Lab and JAXA launched 62 small satellites in the first quarter of 2018.
Sky and Space Global (ASX:SAS), which is the first company to plan, build and operate a telecommunication network over nano satellites, is ready to reap the benefits.
The $116 million company plans to launch 200 nano satellites — satellites between one and 10kg in weight — and place them in a carefully-selected orbit giving equatorial coverage of the Earth, creating a global communication network for voice, data and instant messaging.
Importantly, the Frost & Sullivan report set a high-level prediction of 6,609 satellites with mass less than 15kg to be launch over the next five years.
Over the past two years, the ASX-listed satellite business has shown how nano-satellites and proprietary software can bring huge benefits to global citizens while also delivering long-term growth for shareholders.
Sky and Space has already hit key milestones showing the potential of its technology.
Diamonds are space’s best friend
It launched its 3 Diamonds nano-satellites for the first time in June last year, proving the product capability as a low-cost communications solution for some of the most remote places on earth.
By September, tests of the micro-constellation showed it was capable of facilitating phone calls, instant messaging and sending and receiving images.
In the time since then, the 3 Diamonds have demonstrated the services to commercial customers, while performing a series of “world firsts” for the space industry, de-risking the technology and the software involved.
Today, the company announced an agreement with Cendrawasih Teknologi Nusantara (CTN) to provide its nano-satellite connectivity services to CTN’s individual and small business customers across Indonesia and said it is now testing an innovative satellite ground antenna with Japan’s Kobe University.
Sky and Space also recently announced two deals in China, including plans to work with a rocket company that exclusively operates China’s space program and to incorporate its IoT and communication services into Chinese satellite communications provider Commsat’s network.
Game plan in action for the Pearls
Sky and Space is also executing a long-term game plan with its roadmap for its Pearls technology, due to launch in 2019.
The company is planning to launch an astounding 20 to 25 satellites per quarter between 2019 and 2020, for a total of 200.
The Pearls are fully-developed satellites, twice the size of the Diamonds tech, and will deliver communication services to a range of regions.
This means that from next year, the business will be able to work with partners in Africa, China, Central and South America to get communication deals in place – and be on track to generate revenue from these.
This special report is brought to you by Sky and Space Global.
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