Satellite-Based Earth Observation Market Growth Forecast
A new report focused on the global satellite-based earth observation market by type (VAS, and data), application (defense, weather, LBS, energy, and other applications), and geography (APAC, Europe, MEA, North America, and South America) is now available from Technavio. The global satellite-based earth observation market is expected to grow by $4.51 billion through 2024. However, the market growth momentum is expected to decelerate at a CAGR of over 13% during the forecast period.
A large number of EO satellites are expected to be placed into orbit during the forecast period. For instance, the UK has been focusing on maximizing the potential use and application of satellite-based EO for various purposes including economic development, meteorological monitoring and science applications, mass market and business applications, policy and operational decision making, and others. Similarly, Germany is carrying out several EO programs through the German Remote Sensing Data Center (DFD), an institute under the German Aerospace Center (DLR). Many such developments will have a positive impact on the growth of the market during the forecast period.
The satellite-based earth observation market is expected to be driven by factors such as the growing demand for small satellites and the use of satellites for advanced environmental monitoring.
There is a growing need for replacing older satellites by launching EO satellites to gather high-resolution imagery. This need is driven by the increasing demand for imagery and data gathered from EO satellites from sectors such as defense, mining, oil and gas, and weather forecasting. Besides, many developing economies are making significant investments in the development and launch of indigenous satellites. All these factors are expected to open several growth opportunities for market players during the forecast period.
Based on the segmentation by type, the market generated maximum revenue in the VAS segment in 2019. The segment is driven by the increasing demand for satellite-based EO VAS from applications such as city planning, weather forecasting, forestry mapping, and pollution monitoring. Also, the rise in the number of VAS startups is expected to foster the growth of the segment.
APAC held the largest market share in 2019 and the market growth in the region is expected to be slower compared to the growth of the market in MEA. The growth of the market in APAC can be attributed to the increased use of satellite-based for economic development and improving the quality of life, agriculture, and infrastructure in countries such as China and India. In addition, the entry of private players into the space industry in APAC is expected to contribute to the growth of the satellite-based earth observation market during the forecast period.
One of the fortune 500 companies had used the detailed research report on the satellite-based earth observation market and had decided to increase their market share in the APAC region which offers the highest market opportunities during the forecast period.
(Source: Technavio news release. Infographic provided)