What kind of space business can small and medium manufacturers participate in?

I would like to create a system that enables integration (assembly) of small artificial satellites in Oita. Currently, small satellite integrators are handled by major companies and university-originated ventures, but their main products are "satellite data utilization services," not small satellites themselves. We have yet to have "businesses specializing in the manufacture of small satellites" that can produce all small satellites by receiving drawings from satellite developer. Currently, private businesses are starting to build communications networks and earth observation networks with large amounts of small artificial satellites, and we believe that the business of contracting for the manufacture of small artificial satellites is a blue-ocean field that will grow in the future.

Is satellite manufacturing a high barrier to entry?

When you think of satellite manufacturing, you may think of very high technology and strict inspections, such as those for satellites and aircraft parts used in JAXA rockets. However, data services using small satellites, which will be started by the private sector in the future, and satellite manufacturing related to communications services will probably not require such high hurdles. Equipment such as space chambers, vibration testers, etc. will be smaller, and it will be possible to use the facilities of public institutions, so there will be no need for large-scale capital investment. In the future, a large number of civil artificial satellites will be active in low orbit. In addition, as the life of low-orbit satellites is shorter than that of satellites in geostationary orbit, it is better to consider them as "completely separate satellite groups that require short-term replacement", different from the operations that have been carried out by government and other public sectors.

I assume that it is difficult to make a profit from satellites because the number of units manufactured is small.

Indeed, it is not the tens of thousands of vehicles per month, such as automobiles. Compared to mass production, there are fewer units to manufacture, and the unit price is not high when viewed on a unit-by-unit basis, and you may imagine that it is difficult to make a profit. That is why we are waiting for integrators to manufacture whole small satellites. We believe that we can secure a high margin if we can undertake dozens of small artificial satellites with the same specifications for commercial use rather than satellites of one-off specification by public organizations. We also develop common buses for commercial geostationary satellites to produce satellites that respond to various missions. If we have prime small satellite manufacturing contractor in Oita, I expect that an ideal supply chain that distributes good profit to suppliers in the prefecture can be constructed.

Will the market for satellite manufacturing expand?

As it is almost certain that services using small satellites, such as earth observation satellites and internet satellites, will rapidly expand to solve global issues and contribute to the SDGs, the number of satellites as hardware will also increase. (Reference: SORABATAKE https://sorabatake.jp/16295/ ) I believe that the key is whether we can create a business model that generates profits in that growing market.

Lastly, I would like to ask for a message to the manufacturing companies.

I hope to make the space business a leading industry in Oita by utilizing my space-related personal connections and knowledge accumulated so far. In the field of satellite data utilization, we will also work with the Oita Industrial Creation Organization to actively promote seminars and Workings Group activities for business creation, so that we can provide necessary information and business matching for the manufacturing industry. If you are interested, please feel free to contact "Oita Space Future Center (OSFC) ".