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A07765 | Pages: 391 | Charts: 89 | Tables: 153 |
The global satellite-based earth observation market was valued at $3.5 billion in 2022, and is projected to reach $6.4 billion by 2032, growing at a CAGR of 6.6% from 2023 to 2032.
Satellite-based earth observation involves utilization of satellites orbiting the earth to collect data pertaining to different facets of the earth's surface, atmosphere, and oceans. Satellite-based earth observation process utilizes remote sensing technique 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 satellite-based earth observation market size is expanding significantly, driven by advancements in satellite technology, increased demand for data analytics. North America, especially the U.S., hosts some of the premier space agencies, satellite manufacturers, and earth observation service providers, which notably contributes toward the growth of the market. In addition, the continual progress in satellite technology, sensor capabilities, and data processing methods fosters market expansion. Moreover, space agencies in the country are collaborating with commercial satellite providers to enhance their earth observation capabilities. For instance, in October 2023, National Aeronautics and Space Administration (NASA) significantly expanded its Commercial Smallsat Data Acquisition Program by awarding contracts to seven companies for the provision of earth observation data and services. The contracts have a maximum value of $476 million over five years and include an option to extend services for an additional six months.Moreover, the integration of artificial intelligence and machine learning with Earth observation techniques is expected to increase the satellite-based earth observation market size.
Government bodies such as NASA and National Oceanic and Atmospheric Administration (NOAA) play pivotal roles in promoting satellite-based earth observation endeavors by investing in research, development, and the launch of satellite missions. These missions focus on monitoring various environmental aspects, weather conditions, natural calamities, and climate variations. For instance, in August 2023, Spire Global—a provider of space-based data, analytics, and services—was awarded a $6.5 million, 12-month contract renewal to continue its participation in NASA's Commercial Smallsat Data Acquisition (CSDA) Program. This represents a $500,000 increase from the previous award of $6 million received in June 2022.
The surge in demand for big data technology to generate accurate insights on earth observation data, advancements in earth observation satellite technologies, and high-demand for high-resolution imaging services are factors driving the satellite-based earth observation market. However, the rise in utilization of alternative earth observation technologies such as aerial drones and high-altitude balloons and lack of skilled & trained personnel hinders the growth of the market. Furthermore, increase in investments by several governments in space technology provides growth opportunities for the players operating in the market.
The global satellite-based earth observation market is segmented into product type, satellite orbit, end-user, and region. By product type, the market is divided into EO data and value-added services. On the basis of satellite orbit, it is classified into low earth orbit, medium earth orbit, and geostationary orbit. Depending on end use, it is fragmented into defense, urban development & cultural heritage, agriculture, climate services, energy & raw materials, infrastructure, and others. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
On the basis of product type, the value-added services segment generated maximum revenue in 2022, owing to the increasing demand for advanced data analytics and customized solutions. This trend highlights the growing need for tailored services that enhance the value of raw Earth observation data.There is a rise in demand for satellite value added services wiith deeper insights to enhance the usability of the data and addressing the specific requirements of customers across diverse industries
[PRODUCTTYPEGRAPH]
On the basis of satellite orbit, the low earth orbit segment generated maximum revenue in 2022, owing to rise in demand for satellite-based earth observation services, particularly those provided by LEO satellites equipped with synthetic aperture radar (SAR) technology. LEO satellites can capture high-resolution imagery of the earth's surface, allowing for detailed observation of various features such as infrastructure, natural resources, land use, and environmental changes
[SATELLITEORBITGRAPH]
On the basis of end-use, the defense segment was the highest revenue contributor to the market in 2022 owing to surge in use of satellite data in the defense sector to enhance situational awareness and operational planning. In maritime sector, earth observation technologies can provide data for quality meteorology over oceans (offshore weather and sea state monitoring) complemented near-real-time data collection of variables such as wave height and frequency, wind speed & direction, and ocean current velocity on global and regional scales.
[ENDUSEGRAPH]
Based on region, North America dominated the satellite-based earth observation market in 2022 owing to strong presence of key players and high adoption of satellite data among government and military agencies in the region. Moreover, space agencies in the country are collaborating with commercial satellite providers to enhance their earth observation capabilities. For instance, in October 2023, National Aeronautics and Space Administration (NASA) significantly expanded its Commercial Smallsat Data Acquisition Program by awarding contracts to seven companies for the provision of earth observation data and services. The contracts have a maximum value of $476 million over five years and include an option to extend services for an additional six months.
[REGIONGRAPH]
Some of the major companies that operate in the global satellite-based earth observation market are Airbus SE, Boeing, Israel Aerospace Industries Ltd., Lockheed Martin Corporation, Mitsubishi Electric Corporation, Planet Labs PBC, L3Harris Technologies, Inc., SkyWatch Space Applications Inc., Raytheon Technologies Corporation, Thales Group, Maxar Technologies, BlackSky, Capella Space, and ICEYE.
In recent years, there has been an exponential increase in earth observation 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. With advanced big data analytics, satellite imagery can be processed at higher resolutions and with greater accuracy. This enables users to detect subtle changes in the earth's surface or atmosphere, leading to more precise monitoring and forecasting of environmental changes, natural disasters, and other phenomena. Earth observation satellites produce massive volumes of data on a daily basis that is required to be stored, processed, and analyzed regularly. The satellite-based earth observation market share is rapidly increasing as more industries adopt this technology for various applications.
The data generated in heterogeneous format, semantics, modalities, and resolutions is propelling the need for 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. The satellite-based Earth observation market forecast suggests promising growth opportunities, driven by the rising demand for satellite data across diverse sectors such as agriculture, environmental monitoring, and urban planning.
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. The demand for big data analytics in earth observation drives innovation and investment in satellite technology and data services. Therefore, the surge in demand for big data technology to generate accurate insights on earth observation data is expected to drive the growth of the market during the forecast period.
Technological progress in earth observation satellites leads to the development of advanced sensors and instruments, enabling satellites to gather a wider range of data with greater accuracy and precision. These enhancements enable satellites to capture detailed information about diverse earth phenomena, including land use, vegetation health, climate patterns, and natural disasters. Consequently, the increased availability of comprehensive and high-quality data appeals to a broader array of users and applications, stimulating market growth. 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. For instance, the NASA-ISRO Synthetic Aperture Radar (NISAR) satellite, set to launch in 2024, is a joint effort between NASA and the Indian Space Research Organization (ISRO). It will utilize radar technology to continually scan earth's surface, aiming to monitor changes in landscapes over time. The NISAR satellite contains two different synthetic aperture radar (SAR) systems, the L-band SAR, developed by NASA and the S-band SAR, developed by ISRO.The satellite-based earth observation market opportunity is vast, offering immense potential for businesses to capitalize on the increasing demand for satellite imagery and data analytics solutions.
Moreover, advancements in satellite imaging technology result in improved spatial, spectral, and temporal resolutions, allowing satellites to capture finer details and distinguish between various land features and environmental changes. The higher resolution imagery facilitates more precise analysis and monitoring of earth's surface, supporting applications such as urban planning, agriculture management, environmental monitoring, and disaster response. This availability of high-resolution data attracts industries and organizations seeking accurate and actionable insights, thereby fueling the expansion of the satellite-based earth observation industry.The satellite-based earth observation market growth is driven by increasing demand across diverse industries for high-resolution satellite imagery and data analytics solutions.
Alternative technologies, such as aerial drones, ground-based sensors, and high-altitude balloons, are becoming increasingly capable of capturing detailed earth observation data. This increased competition can lead to a decline in market share for satellite-based earth observation services. Competitors from alternative technologies is one of the key deterrent factors of the global satellite-based earth observation market.
The major enterprises such Google and World View Enterprises and several start-ups such as Zero 2 infinity are investing in R&D of high-altitude balloons, which, in turn, is expected to affect the demand for satellite-based earth observation. In addition, unmanned aerial vehicles (UAVs), such as drones, have been utilized for earth observation applications such as archeological surveying, climate studies, and traffic monitoring. Such applications of alternative technologies are expected to restrain the growth of the market during the forecast period.
The analysis and interpretation of earth observation data demand specialized expertise in remote sensing, geographic information systems (GIS), and data analysis techniques. Proficient professionals are indispensable for deriving meaningful insights from the extensive satellite imagery collected, crucial for applications like environmental monitoring, urban planning, agriculture, and disaster management. The operation and maintenance of earth observation satellites necessitates proficiency in spacecraft engineering, orbital dynamics, and mission control.
Competent personnel ensure the optimal functioning of satellite systems, including monitoring spacecraft health, executing orbital maneuvers, and resolving technical issues. Skilled individuals are essential for crafting innovative applications and solutions that harness satellite earth observation data to address specific user requirements and challenges. This entails the development of tailored algorithms, software tools, and analytical models to extract actionable insights from satellite imagery. Thus, dearth of skilled and trained personnel presents a notable hurdle to the market.
The overall space economy consists of revenue-generating commercial space activities and government investments in space. Government investments shaped the space industry in the 20th century, whereas commercial activities are now setting the pace. The private spaceflight industry has evolved at a fast pace with new entrants and private funding creating opportunities for innovations in products, services, and processes. Increase in investments by governments across the globe for improvement of infrastructure and rise in need to deliver high-quality telecommunication services to consumers are expected to provide remunerative opportunities for the growth of the satellite-based earth observation market during the forecast period market. Furthermore, high demand for satellite imagery in the government sectors, including federal agencies, local, and state governments for various purposes such as urban planning, border mapping, infrastructure security, homeland security is significantly contributing to the growth of the market. Another factor positively influencing the growth of the market is the large number of satellites that have been launched by various agencies such as NASA, European Space Imaging, and Japan Aerospace Exploration Agency. The European public funding landscape includes programs such as Horizon Europe, InvestEU, and European Fund for Strategic Investments (EFSI), for product development, research, and innovation. The European Space Agency (ESA) Business Incubator and Acceleration Centers and the Copernicus Start-Up Program encourage early-stage investments. In addition, governments of various countries aim to expand the space sector with various infinitives in the space and technology industry.
Key Market Segments
Key Market Players