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Satnews Daily
October 23rd, 2014

$3b In Growth For The Satellite EO Market by 2023, According To NSR


[SatNews] Northern Sky Research's (NSR) Satellite-Based Earth Observation (EO) 6th Edition report, released Wednesday, projects that data, value-added services and Information Products from satellite-based Earth Observation will grow to $5.1 billion by 2023, up from $2.1 billion in 2013.

The market will shift gears in the wake of new very high resolution data available and increased demand from commercial and enterprise customers. Even if the context for EO in government and military markets is still uncertain, there is a shift happening to higher resolution data brought about by new regulations for upcoming satellite data aimed squarely at offering ‘airborne-like’ imagery for specific critical applications. The onslaught of free low resolution data in the market is also likely to impact commercial operators and signals a deeper trend towards the commoditization of EO data that could hit imagery at resolution below 10 meters in the future.

“The EO market is gearing up to see the effect of major changes happening at both ends of the spectrum, said Research Director and report author Claude Rousseau. “Optical imagery at 30 cm ground resolution will be available in the coming months for a set of more specialized users, while free data from low resolution sensors will flood the market, thereby leaving some operators out in the cold.” This could mean more revenues from the traditionally demanding military users, while free data may cut down margins in the low-end of the market where data analysis is not such a large part of the revenue pie. The result could be contraction in the market for data and a strong push to develop more solutions that use lower resolution data along the value chain.

Defense and Intelligence markets remain a key segment for Earth Observation but serving the institutional market of Public Authorities will be the leading segment as more governments require maps, imagery for forestry and vegetation monitoring, pollution detection, urban planning, agriculture management, emergency and crisis response and land administration. The North American region is still the largest market for EO and represents one-third of all revenues through 2023, while Asia and Latin America will experience the highest growth rate, in large part due to Public Authorities market and strong take-up in Services.

About the Report
NSR's Satellite-Based Earth Observation (EO), 6th Edition provides a detailed and thorough analysis of trends affecting the satellite-based EO market and includes a new segmentation on very high resolution data. The report examines the data, value-added services and information products markets. It includes a step-by-step analysis of the industry’s environment, its competitive landscape, the context in each market verticals, regions and instrument-resolution. It dives into the major players reach in these segments offers a comprehensive view of the whole value-chain. This completely updated NSR report forecast demand over the next 10 years, and presents revenues for six verticals, five regional markets and seven instrument resolutions along with a data price forecast.

For additional information on this report, including a full table of contents, list of exhibits, and executive summary, please visit this infopage.