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The Satellite-based Earth Observation Market size is forecast to increase by USD 7,604.6 million, at a CAGR of 10.67% between 2023 and 2028. The market growth analysis depends on several factors including the use of satellites for advanced environment monitoring, advances in satellite EO technologies, and the increasing need to enhance offshore communication. Our market report examines historic data from 2018 to 2022, besides analyzing the current market scenario. This market forecasting report also includes an in-depth analysis of drivers, trends, and challenges.
Market Forecast 2024-2028
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Earth observation plays a crucial role in monitoring climate change through various data sources, with satellite-based Earth monitoring being a primary method. Utilizing satellites equipped with high-resolution sensors, scientists gather valuable data to understand environmental shifts. These satellite observations provide comprehensive insights into changes occurring across the planet, aiding in climate research and mitigation efforts. With advancements in satellite technology, the accuracy and detail of Earth observation data continue to improve, enhancing our understanding of climate dynamics and informing decision-making processes to address environmental challenges.
There is a rising need to employ efficient communication facilities for crews and passengers, including fishermen, sailors, engineers at oil rigs, and tourists on cruise ships, to communicate offshore. Delivering a cellular connection offshore is difficult as the installation of cell towers is a challenging task. Furthermore, laying fiber cables and copper cables on the seabed is expensive. The need to enhance offshore communication is increasing. This can be achieved using satellite communication.
Moreover, offshore teams cannot have the same speed and data connectivity rates that are obtained onshore. Offshore teams have less information on changing climate conditions and are more focused on following procedures. In such cases, satellite communication is important to protect the offshore team from danger. The increasing demand for improved satellite communication is creating a demand for EO satellites to modulate and demodulate signals which will propel the growth of the market during the forecast period.
The amount of data generated by earth observation satellites daily has greatly increased due to technological advancements in sensors, the launch of large satellite constellations, and the development of large-scale storage platforms, leading to better image resolutions and higher imagery revisit frequency. The imagery data produced by some satellites alone may exceed 4TB per day. The collection of large amounts enables organizations to analyze and report changes in meteorological, atmospheric, geological, and other activities on Earth better owing to advancements in both the resolution and precision collected.
Moreover, along with other processes in the EO data value chain, the amount generated by satellite-based earth observation increases significantly and surpasses what can be handled by conventional analytical tools. This has given an upgrade to the adoption of big data analytics for EO processing and the entry of new businesses focused on processing and analyzing large volumes of satellite imagery. Therefore, big data in satellites is one of the primary market trends driving market growth during the forecast period.
Satellite operators must follow the designated regulatory and communication framework set down by a certain country or region. Since most countries maintain their own framework for satellite communication, there is often a lack of standardization or conformity with operators from different countries, which makes interoperability issues for the earth observation satellite market players when working with cross-country or regional platforms.
Furthermore, several countries implement their own data strategy with regard to sensitive data such as satellite imaging and geographical features. This challenge grows in intricacy as the number of actors involved in the generation of observation data and its modification boosts. Apart from this, the lack of a standardized framework to integrate or share data from various satellites affects coordination among databases. Thus, such factors are anticipated to impede market growth during the forecast period.
EO data offers a vast volume of data crucial for gaining accurate insights into various fields such as imaging, climate, construction, and mapping. Through satellite imagery and remote sensing, EO data provides detailed information on Earth's surface and atmosphere, aiding in climate monitoring, urban planning, and infrastructure development. The volume data generated by EO satellites enables scientists and policymakers to track environmental changes, assess natural disasters, and plan sustainable development initiatives. By harnessing EO data, stakeholders can make informed decisions to address global challenges and promote responsible resource management.
The defense segment will account for a major share of the market's growth during the forecast period.? The defense segment is anticipated to benefit from the rising investment in satellite technologies for surveillance, regional security, and spy intelligence by emerging countries such as China, India, and Russia. In September 2022, for a 15-year period, Airbus SE secured agreements to deliver satellite communications with the defense ministries of the Czech Republic and the Netherlands.
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The defense segment was valued at USD 2,759.09 million in 2018. The segment is anticipated to see a rising trend of hybrid procurement (public-private partnerships), combining proprietary application and purchase framework contracts prompted by budgetary constraints on defense spending, low utilization rates, and the need to increase the competitiveness of the overall industry. Such developments are anticipated to drive the defense segment of the market during the forecast period.
Based on type, the market has been segmented into VAS and data. The VAS?segment will account for the largest share of this segment.?Government agencies and the defense segment represent the largest category of end-users of satellite-based EO value-added services (VAS), which are used for applications such as city planning, weather forecasting, forestry mapping, and pollution monitoring. In addition, the entry of several VAS startups into the industry has turned the global earth observation satellite market into a commodity, leading to a decline in the cost of satellite-based EO VAS. This has increased the demand for VAS among private sector end-users, especially small- and medium-scale customers. Hence, such factors will boost the segment and market growth during the forecast period.
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North America is estimated to contribute 42% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The US has the biggest earth observation satellite market share and accounts for about a third of all the satellites currently orbiting the earth. The US satellite-based earth observation missions are primarily led by NASA, but the country has been witnessing the entry of a considerable number of private players in the past decade. Most of these private players are focusing on providing satellite imagery-based analytics and VAS, with others launching their own small satellites for information collection. Thus, the market in North America is expected to grow significantly during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Airbus SE, Antrix Corp. Ltd., BAE Systems Plc, Eagle View Technologies Inc., Geoimage, Global Surface Intelligence Ltd., Imagesat International I.S.I Ltd., Kleos Space S.A., L3Harris Technologies Inc., Lockheed Martin Corp., Maxar Technologies Inc., Northrop Grumman Corp., OHB SE, Orbital Insight Inc., Orbital Micro Systems, Planet Labs PBC, Raytheon Technologies Corp., Thales Group, and EarthDaily Analytics
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative analysis.
The market stands as a pivotal domain within space technology, leveraging remote sensing technology and satellite sensors to gather invaluable geospatial data for a myriad of applications. From environmental monitoring to climate monitoring, satellite-based systems provide indispensable insights into Earth's dynamic systems. Geographic information systems (GIS) and geospatial analytics empower stakeholders to extract actionable intelligence from vast repositories of satellite data, enhancing decision-making processes across various sectors. With a focus on earth science and earth monitoring, satellite remote sensing technologies offer unparalleled capabilities in geospatial intelligence and earth observation services. The market continues to burgeon as advancements in satellite data analysis drive innovation and unlock new earth observation applications to address global challenges and foster sustainable development.
The market research and growth report forecasts market growth and forecasting by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Satellite-based Earth Observation Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.67% |
Market Growth 2024-2028 |
USD 7,604.6 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.78 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 42% |
Key countries |
US, Canada, China, Russia, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus SE, Antrix Corp. Ltd., BAE Systems Plc, Eagle View Technologies Inc., Geoimage, Global Surface Intelligence Ltd., Imagesat International I.S.I Ltd., Kleos Space S.A., L3Harris Technologies Inc., Lockheed Martin Corp., Maxar Technologies Inc., Northrop Grumman Corp., OHB SE, Orbital Insight Inc., Orbital Micro Systems, Planet Labs PBC, PlanetiQ, Raytheon Technologies Corp., Thales Group, and EarthDaily Analytics |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the information that you are looking for, you can reach out to our analysts and get segments customized. |
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