Satellite-Based Earth Observation Market

The global satellite-based earth observation market was valued at $5.7 billion in 2021, and is projected to reach $11.3 billion by 2031, growing at a CAGR of 7.2% from 2022 to 2031.

Satellite-based earth observation is carried out with the aid of satellites orbiting around the earth to view, observe, and identify environmental change, map making, and others. Satellite-based earth observation process utilizes remote sensing technique in order to collect information on chemical, physical, and biological aspects of earth. The information collected through remote sensing is used for several applications such as weather & terrain mapping, reconnaissance & intelligence missions, agricultural monitoring & management, synthetic aperture radar imagery, and others. In addition, collected information is used by the defense sector for border monitoring, disaster management, and other military missions.

The impact of the COVID-19 pandemic has resulted in delayed development and launches of satellite, slowdown in the operation of the key players, and shortage of components. The pandemic has resulted in supply-chain disruptions causing delayed launches of satellites. Shortage of components owing to regulations associated with import and export of goods have resulted in delayed manufacturing, and launch of satellites. Limited supply of liquid oxygen and liquid nitrogen owing to greater demand from hospitals to treat COVID-19 patients caused an 11 day delay in the launch of Landsat 9 satellite, a joint project of NASA and the U.S. Geological Survey. It was then launched in September 2021. The satellite launch services and satellite manufacturing has been impacted by computer chip shortage, due to manufacturing shutdowns in China, South Korea and Taiwan. The limited chip supplies caused SpaceX to delay the development of a new user terminal for its Starlink satellite broadband system. Moreover, space agencies utilized satellite data to track and monitor planet-wide changes in the environment during COVID-19. For instance, in 2020, NASA collaborated with European Space Agency (ESA), and Japan Aerospace Exploration Agency (JAXA) for use of their scientific capabilities in Earth-observation for monitoring planet-wide changes in the environment and human society. These agencies have created COVID-19 Earth Observation Dashboard to combine satellite data with analytical tools for tracking changes in air and water quality, climate change, economic activity, and agriculture, and enables the public and policymakers to monitor the short-term and long-term impacts of pandemic-related restriction.

The growth of the global satellite-based earth observation market has propelled due to surge in demand for big data technology to generate accurate insights on EO data, advancements in earth observation satellite technologies, and high-demand for high-resolution imaging services. However, rise in utilization of alternative earth observation technologies and lack of skilled & trained personnel are the factors that hamper the growth of the market. Furthermore, growth in investments by several governments in space technology is the factor expected to offer growth opportunities during the forecast period.

The satellite-based earth observation market is segmented on the basis of product type, satellite orbit, end-use, and region. By product type, it is segmented into EO data, and value-added services. By satellite orbit, it is classified into LEO, MEO, and GEO. By end-use, it is categorized into defense, urban development & cultural heritage, agriculture, climate services, energy & raw materials, infrastructure, and others. By region, the report is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players analyzed in the global satellite-based earth observation market include Airbus S.A.S., Furuno Electric Co., Ltd., L3Harris Technologies, Inc., Inmarsat Global Limited, Intelsat S.A., Israel Aerospace Industries (IAI), Lockheed Martin Corporation, Planet Lab, Raytheon Technologies Corporation, Skywatch, STMicroelectronics N.V., The Boeing Company, and Thales Group.

Surge in demand for big data technology to generate accurate insights on EO data

In recent years, there has been an exponential increase in earth observation (EO) data volume, which in turn is proliferating the demand for big data technologies to infer actionable insights on numerous global challenges such as climate change and others.

EO satellites produce vast amount of data on a daily basis that is required to be stored, processed, and analyzed regularly. EO data is generated in heterogeneous format, semantics, modalities, and resolutions, propelling the need of big data technologies to process and analyze complex data in a faster way. It results in high complexity of data set that requires pre-processing, multi-level fusion, and analytics. Thus, variety, veracity and volume apply to this kind of dataset, driving the need to deploy big data analytics to generate accurate insights.

Moreover, big data technologies gauge customer requirements and analyze the complexity of data to provide actionable insights in a faster and better decision-making way. Thus, surge in demand for big data technology to generate accurate insights on EO data is expected to drive the growth of the satellite-based earth observation industry during the forecast period.

Advancement in earth observation satellite technologies

The small satellite standard was developed to offer universities and research organizations with faster and cost-effective access to space. Leading players across the globe have made many advancements in satellite technology (such as hyperspectral and multispectral imaging and additive manufacturing) to further expand the capabilities of satellites, decrease the cost, and improve the customizability of satellites.

Hyper-spectral and multi-spectral imaging enhance the capabilities of satellites in collecting precise data about the changes in the environment. Hyperspectral sensors produce images comprising highly detailed spectral data that allow the detection of micro-level changes in the environment such as in soil, crops, and water. Multispectral sensors, on the other hand, provide a clear perception of details on the ground, such as spotting pest-infested trees.

The need for cost reduction by prominent rocket manufacturers, as well as a growth in worldwide awareness of the need to reduce the CO2 footprint of rocket launches drive the development of reusable rockets, which further provides a cost-effective and environment-friendly opportunity for launching satellites by the space organizations. The advancement in satellite technologies and launch systems technologies provide an opportunity for the satellite-based earth observation business to flourish.

High demand for high-resolution imaging services

Satellites provide high-resolution imagery for monitoring and verifying applications in various sectors, including civil engineering & construction, government, defense & intelligence, agriculture & forestry, transportation, real estate, and others. Satellite imaging is applicable in topographic mapping, understanding land applications such as infrastructure planning and construction, exploiting new energy sources, mitigating the impact of disasters, and monitoring drilling projects in the oil & gas industry. Moreover, high-resolution satellite imagery assists in monitoring vegetation, green mapping, vegetation damage due to leaching, traffic management, tracking of fleet, and others. In the coming years, satellite imaging is expected to be significantly used in the real estate industry for an enhanced view of buildings and properties, and in the insurance sector for accessing environmental risk through accurate and updated geographical data. Thus, high utilization of satellite imagery in various sectors is expected to drive the growth of the market during the forecast period.

Rise in utilization of alternative earth observation technologies

Competitors from alternative technologies is one of the factors hindering the growth of the satellite-based earth observation market. Major enterprises such Google and World View Enterprises, and several startups such as Zero 2 infinity, are investing in the R&D of high-altitude balloons, which in turn is expected to affect the demand for satellite based earth observation. In addition, unmanned aerial vehicle (UAV) such drones have been utilized for earth observation applications such as archeological surveying, climate studies, and traffic monitoring. Such applications of alternative technologies will impact the growth of the market in negative manner during the forecast period. 

Lack of skilled and trained personnel

Earth observation satellites generate a vast amount of data. Obtaining encrypted data from earth observation satellites in outer space requires a high level of programming expertise. In addition, there should be a thorough grasp of big data, as well as any other related issues. However, there is a lack of skilled personnel who can perform such tasks, which in turn limits the growth of the market during the forecast period.

The satellite-based earth observation market is segmented into Product Type, Satellite Orbit and End-use.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the satellite-based earth observation market analysis from 2021 to 2031 to identify the prevailing satellite-based earth observation market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the satellite-based earth observation market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global satellite-based earth observation market trends, key players, market segments, application areas, and market growth strategies.

 Satellite-Based Earth Observation Market Report Highlights