Earth observation data market to reach $2.4B: Euro Consult

Earth observation data market to reach $2.4B: Euro Consult

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Paris: According to the 11th edition of Euroconsult’s report, Satellite-Based Earth Observation: Market Prospects to 2027, the commercial Earth observation (EO) data market could reach $2.4 billion in 2027, driven by a mixture of defense and new commercial markets and supported by the arrival of new constellation operators.

Euroconsult has identified approximately 15 companies that have announced intentions to develop low-cost constellations based on smallsat technologies. This has been aided by the advancement in several areas such as miniaturization of components, enabling the development of more capable satellites at a lower mass.

The advent of new cost-efficient solutions collecting data at a higher frequency rate should transform services generation and delivery. Optimized analytics and increasing use of artificial intelligence, being pushed by both start-ups and established players, should contribute to an increase in the value proposition, and to the enlargement of use cases for satellite-based data.

“Under this approach, location-based services (LBS) and finance are relatively new markets with a large potential – the two combined could represent a revenue opportunity of more than $2 billion in 2027,” said Pacome Revillon, CEO of Euroconsult.

“LBS markets are built around the monitoring of specific point targets; the finance sector is similar in the change detection analytics being built, but with a clear focus on financial institution end-users.”

Some selected performance indicators are as follows

The commercial satellite data market exceeded $1.3 billion in 2017, of which over $850 million was generated with the intelligence and defense community. Cumulative manufacturing revenues of EO satellites should total approximately $35 billion over the next ten years.

From a government perspective, almost 50 countries will launch satellites over the next ten years. Morocco and Pakistan were the latest new countries to launch Earth observation satellites; developing EO programs should represent $3.8 billion in market value over the next decade.

The fast-evolving capabilities and the challenges attached to the development of business opportunities should favor a transformation of the ecosystem. While government and private end-users will be eager to leverage new capabilities, strategic partnerships and/or different forms of consolidation and vertical integration should contribute to reshaping the industry in the next three to five years.