{"id":68723,"date":"2017-03-08T00:19:57","date_gmt":"2017-03-07T16:19:57","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/on-the-future-profitability-of-the-smallsat-market\/"},"modified":"2017-03-08T00:19:57","modified_gmt":"2017-03-07T16:19:57","slug":"on-the-future-profitability-of-the-smallsat-market","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/on-the-future-profitability-of-the-smallsat-market\/","title":{"rendered":"On the Future Profitability of the Smallsat Market"},"content":{"rendered":"<p>In the last five years or so, the smallsat market has propelled itself to the forefront of the conversation about the future of the satellite industry. Venture capital firms have begun pouring money into what many see as the next big stage of evolution for satellite; but along with those investments come concerns about when some smallsat companies will see profitability. Moderated by Carolyn Belle, senior analyst at Northern Sky Research, a group of industry entrepreneurs gathered to address this question at the \u201cSmallsats: Will They Generate Large Returns?\u201d panel at SATELLITE 2017.<\/p>\n<p>Craig Clark, chief executive officer at Clyde Space, kicked off the discussion by pointing out that it\u2019s still somewhat early to focus primarily on returns. \u201cThe market is so young and there is a lot of opportunity. It\u2019s a race to see who\u2019s going to be the dominant player, so for me it\u2019s not necessarily about profit. It\u2019s more about where you position yourself in the market,\u201d he said.<\/p>\n<p>\t\t\t\t<img loading=\"lazy\" width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/03\/yAHHUPKfScyFwPFgzOle_ShowDaily17_Cover3_DGTL-300x225.jpg\" class=\"attachment-medium size-medium\" alt=\"\" style=\"width: 120px; height: auto;\" decoding=\"async\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/03\/yAHHUPKfScyFwPFgzOle_ShowDaily17_Cover3_DGTL-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/03\/yAHHUPKfScyFwPFgzOle_ShowDaily17_Cover3_DGTL-800x599.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/03\/yAHHUPKfScyFwPFgzOle_ShowDaily17_Cover3_DGTL-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/03\/yAHHUPKfScyFwPFgzOle_ShowDaily17_Cover3_DGTL.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\">\t\t\t<\/p>\n<h3 class=\"fs-5 mt-0\">Explore the Show Daily 2017 Day 3 Issue<\/h3>\n<p class=\"mb-0 fs-smaller text-balance\">Check out more from this issue and find your next story to read.<\/p>\n<p>\t\t\t<button class=\"btn btn-primary\" type=\"button\" data-bs-toggle=\"offcanvas\" data-bs-target=\"#offcanvasMENU\" aria-controls=\"offcanvasExample\" aria-label=\"button\" style=\"white-space: nowrap;\"><br \/>\n\t\t\t\tView More <i class=\"bi bi-arrow-right-circle\"><\/i><br \/>\n\t\t\t<\/button><\/p>\n<p>Chad Anderson, CEO at Space Angels Network, also highlighted the relative youth of the smallsat market, but emphasized too the importance of companies working together to figure out what main issues the market needs to address, even as they jostle to figure out the pecking order. \u201cSmallsats are still in their infancy. A lot of parts along the value chain need to be developed,\u201d he said. \u201cAlways in new industries you need some level of cooperation among future competitors before there is a market to compete over. We\u2019re still in that early stage.\u201d<\/p>\n<p>\u201cM2M, hyperspectral imaging, AIS ship tracking \u2014 someone needs to fuse all of that to provide insights for the customer,\u201d said Jason Andrews, CEO at Spaceflight Industries. Thus, no smallsat company will operate in a vacuum as the technology develops further. \u201cYou have to be a bigger part of the ecosystem to generate meaningful returns.\u201d<\/p>\n<p>One of the biggest hurdles to the development of the smallsat market is launch, a challenge that nearly every company in the space industry. The delays the industry saw in 2016 were particularly disruptive, according to Clark. \u201cI do think the launch bottleneck is causing issues in the smallsat market,\u201d he said. Despite the introduction of a number of new launch providers, it\u2019s going to take time before those companies come online properly. \u201cWe\u2019re all waiting for that to happen so we can get more spacecraft up,\u201d he said.<\/p>\n<p><script>var AIAD_fcd45f981d570e35cee941b23edc69c7_6a6837f7530fd;googletag.cmd.push(function(){var AIMAP_29b58f13885ebf8ea6b032f958eb0748 = googletag.sizeMapping().addSize([992, 100], [[970, 90], [970, 250]]).addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_737ce075cc05dd766c8f8ea08f3faa73 = googletag.sizeMapping().addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_21fe3bcfb86a8660aba4e721ee9338f3 = googletag.sizeMapping().addSize([1200, 100], [970, 250]).addSize([768, 100], [600, 300]).addSize([320, 100], [300, 250]).build();AIAD_fcd45f981d570e35cee941b23edc69c7_6a6837f7530fd = googletag.defineSlot('\/987\/satellitetoday.com\/via-satellite-digital-issue-ads', [ [600, 300], [300, 250], [970, 250] ], 'div-gpt-ad-1774631144891- 0-6a6837f7530ff').defineSizeMapping(AIMAP_21fe3bcfb86a8660aba4e721ee9338f3).setCollapseEmptyDiv(true).addService(googletag.pubads());   });<\/script><script>googletag.cmd.push(function() { googletag.display('div-gpt-ad-1774631144891- 0-6a6837f7530ff'); });<\/script><\/p>\n<p>\u201cWhen we get through this next round of launches, more capital will show up,\u201d Andrews added. That additional capital, he believes, will alleviate the problem by diversifying the options available to smallsat operators. \u201cThere are a lot of launch companies popping up, and not all will be successful. That\u2019s part of the game. Launch is super hard, and we have to educate the investors that [delays] are something we have to plan for.\u201d<\/p>\n<p>The group agreed that international options coming online will also play a role, exemplified by the record-breaking launch of the Indian PSLV in February. \u201cWe had 100 satellites launched all of last year. We had 100 launched by the second month of this year,\u201d Anderson said.<\/p>\n<p>Clark expects that as the launch sector improves, smallsats will start to have a growing role in communications. \u201cIf you look at the pie chart of the smallsat market it is mostly dominated by LEO. The space market in general is dominated by GEO communications \u2026 but the pace of technology change is so fast it\u2019s allowing more and more applications to come to the forefront,\u201d he said.<\/p>\n<p>Chris Boshuizen, entrepreneur in residence at Data Collective, added that it\u2019s a question of whether technology can keep up with what people want. \u201cCustomer demand is outstripping technology and capability in the smallsat realm, which is why big satellites are the domain of a lot of this stuff,\u201d he said. But Andrews doesn\u2019t think that will be the case for long, pointing out that one major advantage smallsats have over standard-sized satellites is manufacturers can take on additional risk. Because they are exponentially cheaper to design and build, \u201cthe rate of technology innovation is a lot faster than the bigger satellites,\u201d he said.<\/p>\n<p>As for the future, the panel agreed that the only way smallsats will prove their relevancy in the years to come will be if companies hone in on the specific needs of their end users. \u201cThe market is too saturated with companies that are very broad and shallow. I would like to see more specialization,\u201d Boshuizen said. \u201cKnow your customers, have the relationships an have a deep understanding of their problem.\u201d<\/p>\n<p>For example, as Anderson pointed out, \u201cIf you want to go monitor a specific area it\u2019s a little different than telling me what crop yields this summer are going to look like.\u201d Having the answers to those \u201cintuitive questions\u201d is the crux of what will make or break the smallsat industry. <strong>VS<\/strong><\/p>\n<p>,<\/p>\n<h2 class=\"widget-title\">In This Issue<\/h2>\n<p>\t\t\t\t\t<!-- post id 307:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img loading=\"lazy\" width=\"300\" height=\"200\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/I7J4dLBETnqrMufUQ24q_DSC_9704_web-300x200.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/I7J4dLBETnqrMufUQ24q_DSC_9704_web-300x200.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/I7J4dLBETnqrMufUQ24q_DSC_9704_web-800x534.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/I7J4dLBETnqrMufUQ24q_DSC_9704_web-640x428.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/I7J4dLBETnqrMufUQ24q_DSC_9704_web.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tBezos Announces Eutelsat as First Customer for New Glenn Rocket<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3 d-block d-md-none\">\n\t\t\t\t\t\t<!-- post id 312:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/56mNMvEqQECgSm6aN5jc_Space20Frontier20Photo-300x225.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/56mNMvEqQECgSm6aN5jc_Space20Frontier20Photo-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/56mNMvEqQECgSm6aN5jc_Space20Frontier20Photo-800x600.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/56mNMvEqQECgSm6aN5jc_Space20Frontier20Photo-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/56mNMvEqQECgSm6aN5jc_Space20Frontier20Photo.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tEntrepreneurs Go Head-to-Head at Startup Space Pitch Contest<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3\">\n<p>\t\t\t\t\t<!-- post id 308:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"200\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/eE6SYFHSTEmDZxrEcKXj_Rocket_Investor-300x200.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/eE6SYFHSTEmDZxrEcKXj_Rocket_Investor-300x200.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/eE6SYFHSTEmDZxrEcKXj_Rocket_Investor-800x533.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/eE6SYFHSTEmDZxrEcKXj_Rocket_Investor-640x427.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/eE6SYFHSTEmDZxrEcKXj_Rocket_Investor.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tFinding Investment Opportunities in the Emerging NewSpace Market<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3 d-block d-md-none\">\n\t\t\t\t\t\t<!-- post id 306:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"200\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/OgxLCvwhTuyzdbEpPFug_DSC_9753_web-300x200.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/OgxLCvwhTuyzdbEpPFug_DSC_9753_web-300x200.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/OgxLCvwhTuyzdbEpPFug_DSC_9753_web-800x534.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/OgxLCvwhTuyzdbEpPFug_DSC_9753_web-640x428.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/OgxLCvwhTuyzdbEpPFug_DSC_9753_web.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tTop Satellite CEOs Discuss Potential for Market Disruption and Opportunity in a Competitive Landscape<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3\">\n<p>\t\t\t\t\t<!-- post id 309:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/L8DTDA2SQOSRfZkItlVy_P3074572_web-300x225.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/L8DTDA2SQOSRfZkItlVy_P3074572_web-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/L8DTDA2SQOSRfZkItlVy_P3074572_web-800x600.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/L8DTDA2SQOSRfZkItlVy_P3074572_web-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/L8DTDA2SQOSRfZkItlVy_P3074572_web.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tWill Commercial Operators Play a Greater Role in US Milspace Future?<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3 d-block d-md-none\">\n","protected":false},"excerpt":{"rendered":"<p>In the last five years or so, the smallsat market has propelled itself to the forefront of the conversation about the future of the satellite industry. Venture capital firms have begun pouring money into what many see as the next big stage of evolution for satellite; but along with those investments come concerns about when [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":68725,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-68723","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/68723"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=68723"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/68723\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media\/68725"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=68723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=68723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=68723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}