Global Space-Based Edge Computing Market 2022
The global space-based edge computing market is expected to grow at a Compound Annual Growth Rate (CAGR) of 22.64% during the forecast period from 2023 to 2033, reaching a market value of $1,807.3 million in 2033 compared to $200.9 million in 2022. The increasing demand for space-based edge computing is primarily driven by the growing defense industry. The market ecosystem includes component manufacturers as well as end users.
Space-based edge computing is a new computing concept that involves connecting networks and devices closer to the source for improved connectivity and low latency. Compared to traditional models that centralize processing power in on-premise data centers, edge computing offers several advantages, including better control, utilization of physical assets, and the development of interactive human experiences. Use cases for space-based edge computing include self-driving vehicles, autonomous robots, smart machinery data, and automated shopping.
USD 1807.3 Mn incremental growth between 2022 and 2027
End User, Component, Region
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Several factors contribute to the growth of edge computing, including the need for low-latency processing in various use cases, the importance of big data, and the adoption of technologies such as artificial intelligence (AI), Internet of Things (IoT), and 5G. Partnerships and acquisitions with telecommunication companies and startups also drive growth. Major cloud service providers like Amazon, Microsoft, Google, and IBM contribute to reducing latency and improving image quality in geospatial imagery through infrastructure, hosting, machine learning, and computing capacity.
Considering the growth of terrestrial edge computing over the past few years, it is an opportune time to adopt space-based edge computing. As technologies like IoT, Machine-to-Machine (M2M), 5G, and AI become prevalent in everyday life, it becomes evident that not everything should rely on the cloud. Processing and computing are now shifting towards the edge.
Data security is a significant concern for space-based edge computing services. Ensuring the resilience of the edge infrastructure against malicious acts and protecting satellite and ground operations are essential. However, existing terrestrial edge computing services and the integration of 5G with edge computing offer improved application speed and real-time processing capabilities, which can address these concerns. Space-based edge services have the potential to meet the expanding and evolving demand.
Prominent players in the space-based edge computing market, such as Hewlett Packard Enterprise (HPE) and Microsoft Azure, are developing products tailored for challenging operating environments, including anti-dust, anti-explosion, anti-vibration, and anti-current/voltage fluctuations in various industrial locations. These companies are actively working on forming partnerships and releasing new products to drive innovation in the space-based edge computing industry.
The market is segmented based on various factors, including end user, component, and region.
Segmentation by End User
Segmentation by Component
Segmentation by Region
North America – U.S. and Canada
Europe – France, Germany, U.K., and Rest-of-Europe
Asia-Pacific – China, India, Japan, and Rest-of-Asia-Pacific
Rest-of-the-World – Middle East and Africa and Latin America
The global market for space-based edge computing is projected to generate significant revenues, with the defense segment leading the way, followed by the commercial segment. In 2022, the defense segment of the market generated $137.0 million in revenue and is expected to grow at a compound annual growth rate of 22.07% during the forecast period from 2023 to 2033. Space-based edge computing offers numerous applications in defense, such as using a network of unmanned aerial systems (UASs) to gather intelligence and surveillance data through their sensors. These UASs can process the sensor input from platforms like cameras, infrared (IR), and electro-optical (EO) systems, and communicate with each other in a mesh network to make autonomous decisions. Rapid synchronization is crucial for a reliable edge design, and researchers suggest incorporating smart data filters, edge device control, and network infrastructure improvements to maximize bandwidth.
In terms of components, the software segment is expected to generate substantial revenues in the global space-based edge computing market, followed by the hardware segment. The software segment reported revenue generation of $102.8 million in 2022 and is projected to grow at a CAGR of 22.92% from 2023 to 2033. Software plays a crucial role in the space-based edge computing market, as hardware alone is ineffective without the appropriate software code tailored for specific tasks. With the increasing adoption of autonomous operations in various fields, there is a growing demand for smart software. Moreover, as satellite launches increase, the use of software in autonomous satellite operations is expected to rise. This software enables satellites to perform tasks without human intervention, ensuring smooth operations.
North America dominated the global space-based edge computing market in 2022, accounting for the highest share of 67.50% by value, mainly due to a significant number of service providers based in the region. Increased spending by commercial organizations like Hewlett Packard Enterprise, Orbits Edge, Exo-Space, LeoCloud, Inc., KP Labs, Nearby Computing, Satellogic, and Spiral Blue, as well as government agencies, is expected to drive substantial growth in the global market during the forecast period.
Within North America, the U.S. and Canada represent the regional markets. The demand for space-based edge computing services is projected to grow significantly in the coming years, largely due to the planned launch of satellite constellations between 2022 and 2033. Market players such as Hewlett Packard Enterprise (HPE), Exo-Space, and Orbits Edge will play a crucial role in expanding the market in North America. The defense industry in North America has witnessed substantial growth in edge computing applications, as the region has experienced significant digital transformation. Additionally, the Earth observation (EO) industry is increasingly adopting edge computing solutions, attracting numerous startups to the region due to the expanding internet services, Internet of Things (IoT) applications, including the 5G network, and growing opportunities in e-commerce.
Europe held a share of 20.17% in 2022 and is expected to experience the second-highest growth during the forecast period, driven by activities in the U.K., Germany, and France. Europe is home to several key companies that provide products and services globally. It is the second-largest market for the growth of space-based edge computing, with the presence of leading national space agencies like the European Space Agency (ESA) and the European Commission, along with commercial space companies operating in the region. This creates opportunities for both established and emerging companies to secure contracts, partnerships, and agreements for manufacturing and delivering products or services within and outside the region.
The market for space-based edge computing is primarily led by well-established players, who hold an 11% share in the market segment. The remaining 89% of the market is comprised of start-up entities.
Key Companies Profiled in this report include AICRAFT, ALL.SPACE, Exo-Space, Hewlett Packard Enterprise, KP Labs, LEOcloud, Inc., Little Place Labs, Loft Orbital, Nearby Computing, OrbitsEdge, Inc., Ramon.Space, Satellogic, SKYWATCH, Spiral Blue, SkyServe, Ubotica Technologies.
In March 2023, Nearby Computing entered into a partnership with Cellnex Telecom to demonstrate the integration of 5G and edge computing infrastructure. The demonstration showcased the implementation of 5G and edge computing in smart sensors both on the ground and in space, with a particular focus on serving smart cities.
In November 2022, Ubotica Technologies and Open Cosmos signed an agreement to deploy CogniSat-6, an AI-focused CubeSat equipped with autonomous capabilities. This CubeSat is equipped with the CogniSat edge computing platform and will be deployed in low Earth orbit (LEO). Its primary objective is to optimize image gathering scope by providing reactive retargeting capabilities.
In October 2022, Exo-Space finalized a contract with Sidus Space to integrate a payload into their hybrid 3D-printed satellite, LizzieSat. The anticipated launch of LizzieSat is scheduled for sometime in 2023.
In August 2022, OrbitsEdge secured a long-term launch agreement with Vaya Space for a launch planned in the fourth quarter of 2023. The collaboration aims to develop high-performance computing data centers capable of processing and analyzing data generated in space. These data centers will be deployed in low Earth orbit (LEO) above the cloud. This approach helps overcome bandwidth limitations and transmission delays associated with sending large amounts of satellite data to Earth for processing.
Key Questions Answered
What are the emerging trends in the global space-based edge computing market, and how is the market projected to evolve between 2023 and 2033?
What are the primary drivers and challenges faced by companies operating in the global space-based edge computing market?
How is the market anticipated to grow during the forecast period from 2023 to 2033?
What opportunities exist for companies to expand their presence in the global space-based edge computing market?
Which region is expected to lead the global space-based edge computing service market by 2033?
What key strategies are being implemented by major players to sustain their competitiveness in this market?
What is the current and future revenue outlook for the global space-based edge computing market?