Geopolitical Shifts and AI Reshapes Earth Observation Market: Novaspace
Releases 18th edition of the Earth Observation Data and Services Market Report
The 18th edition of the Novaspace ‘Earth Observation Data and Services Market’ report signals a decisive market shift: geopolitical instability and AI integration are accelerating demand for defense-grade EO capabilities. Sovereign control and precision intelligence now dominate buyer priorities, with customers demanding uncompromised access to both premium resolution and rapid revisit rates, reshaping the commercial EO landscape for the decade ahead.
“While the past decade saw the emergence of differentiated constellation projects, the next decade will be defined by integration and interoperability,”
Alexis Conte, Novaspace
Over the past year, geopolitical tensions have prompted nations to seek sovereign observation capabilities, fueling demand for commercial EO solutions. This surge has pushed the EO data market to $2.2 billion in 2024, growing at a 7% CAGR since 2019, with defense applications accounting for over 65% of data demand. Simultaneously, the EO Value-Added Services (VAS) market reached $3.2 billion, also growing at 7% CAGR, and projected to reach $5 billion by 2034.
“While the past decade saw the emergence of differentiated constellation projects, the next decade will be defined by integration and interoperability,” said Alexis Conte, Senior Manager at Novaspace. “No single company can cover every layer of the information chain, so industry is moving towards strategic vertical integration and key partnerships to close value chain gaps, reshaping the competitive landscape.”
Despite potential budget realignments in the United States, Novaspace anticipates no major slowdown in EO activity. Instead, a more coordinated use of EO data across government agencies is expected, extending its application from strategic planning to tactical-level operations.
The next frontier in EO lies in data fusion, the seamless integration of multi-sensor inputs into actionable intelligence. This evolution is giving rise to specialized service providers capable of orchestrating complex, multi-source architectures.
These market advancements see security emerging as a strategic imperative. Technologies such as quantum key distribution and secure data relay are becoming essential to protect EO data integrity and ensure resilient communications across increasingly interconnected networks.
Novaspace’s Earth Observation Data and Services Market delivers a global assessment of satellite-based commercial demand for EO imagery and value-added services. It analyzes the key drivers of market growth, including cloud computing, AI, downlink capacity, regulatory frameworks, and pricing strategies, while offering detailed insights into regional and vertical market penetration, user spending behavior, and adoption trends.