Satellite-Based Earth Observation Market Poised for Growth
Forecast CAGR Predicted to Exceed 10.6 Percent
The satellite-based earth observation market size is forecast to increase by $7.60 billion, at a CAGR of 10.67% between 2023 and 2028, according to a new report from Technavio. The market sees growth fueled by the increasing use of satellites 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, driving 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.
The defense segment will account for a major share of the market's growth during the forecast period. The global market experienced substantial growth in 2023, with significant contributions from the defense segment. This segment is driven by increasing investments from emerging countries like China, India, and Russia in satellite technologies for surveillance, security, and intelligence purposes, driving the demand for surveillance and security equipment. Earth-imaging satellites serve various non-military purposes, including environmental monitoring, meteorology, cartography, ocean salinity, ice thickness, agricultural health, air quality, and disaster management.
The defense segment was valued at $2.76 billion in 2018. Key players in the market include Imagesat International, Planet Labs, and others. Technological capabilities, such as high-resolution cameras and remote sensing technology, drive innovation in this sector. However, market restraints include the high cost of launching satellites, the need for highly trained workers, encrypted data security, and big data processing. Reusable rockets and advancements in satellite production aim to mitigate these challenges. These developments are anticipated to drive the defense segment of the market during the forecast period.
Based on type, the market has been segmented into Value Added Services (VAS) and data. The VAS segment will account for the largest share in this segment. The value-added services market in the satellite-based earth observation sector has experienced significant growth due to increased demand from government agencies and the defense sector. Applications include city planning, weather forecasting, forestry mapping, and pollution monitoring.
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 global market is dominated by the US, which hosts approximately one-third of all earth-imaging satellites in orbit.