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The Satellite-based Earth Observation Market size is forecast to increase by USD 7.60 billion, at a CAGR of 10.67% between 2023 and 2028. The market sees growth fueled by satellite utilization for advanced environmental monitoring, crucial in disaster management and resource conservation efforts. Technological advancements, including higher-resolution imaging and data analytics, bolster observation capabilities. Furthermore, the rising need to strengthen offshore communication, especially in sectors like maritime shipping and oil exploration, drives demand, propelling market expansion for satellite-based Earth observation solutions. These developments underscore the market's pivotal role in addressing environmental challenges and facilitating efficient resource management across various industries, positioning it for sustained growth in the foreseeable future.
Market Forecast 2024-2028
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The market is driven by advancements in earth observation satellite technologies facilitating high-resolution imaging services for various sectors like defense, civil engineering & construction, and agriculture & forestry. With synthetic aperture radar imagery and hyperspectral/multispectral imaging, it supports border monitoring, military missions, and infrastructure security. However, challenges persist due to the lack of skilled personnel and the complexity of alternative earth observation technologies like high-altitude balloons and drones. Despite this, the market thrives on government investments in space, commercial space activities, and the growing telecommunication services sector, fueling space economy growth.
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.
The market exhibits diverse segmentation driven by various factors. In the defense sector, it aids border mapping and homeland security initiatives. Meanwhile, big data technology enhances intelligence gathering for defense & intelligence applications. Hyperspectral and multispectral imaging cater to transportation and urban planning needs, while additive manufacturing benefits from high-resolution imagery for real estate development. The private spaceflight industry leverages reusable rockets enabled by government sector initiatives. However, challenges persist due to the lack of skilled personnel, impacting unmanned aerial vehicle (UAV) deployment.
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 2.76 billion 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 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.
The market experiences segmentation driven by various factors. Lack of skilled & trained personnel hampers growth despite smart city initiatives and open-source data availability. Economic downturns, or recessions, affect space programs and urban development, impacting infrastructure facilities. Key players like Satellogic and MDA Corporation drive innovation in satellite technology for both global corporations and small to medium-sized businesses. Applications range from meteorology to natural resource management, leveraging high-resolution cameras and remote sensing technology. Challenges include launch costs and encrypted data, but the market thrives on Earth Observation (EO) Data and Value-Added Services.
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 7.60 billion |
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 growth analysis, Market forecasting??????, 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 market 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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