Satellite Data Services Market Worth $16.7 Billion by 2026: Report
The Satellite Data Services Market was valued at $5.9 billion in 2021 and is projected to reach $16.7 billion by 2026, at a CAGR of 23.0% from 2021 to 2026, according to a new report from MarketsandMarkets. The US government invests in every part of the smallsat ecosystem and is likely to continue investing, both at the upstream and downstream, which would positively impact the satellite data services market. The more interesting development is in the increasing investments in smallsats by other governments around the world.
In the last few years, the satellite data services market has evolved considerably. Especially, the supply side has seen new technologies and new systems being introduced into operation. In addition to the impact of cloud, the satellite data services industry finds itself at the junction of two revolutions, the one being the Big Data/Artificial Intelligence (AI) and the other being the commercialisation of space (through its main drivers, small and micro satellites). This market is expected to have exponential growth owing to the surge in the demand for satellite imagery data throughout various industries. In recent years, the satellite market has been experiencing advances in technology and the response of the marketplace have led to smaller sensors, satellites, and launch vehicles competent of performing valuable space missions at relatively low price. This new approach has led to an increase in the number of satellites being launched. CubeSats and Small Satellites are cheaper to manufacture in comparison to normal satellites and can be launched as a secondary payload on a rocket or larger launch vehicles that can deploy many satellites at a time into different orbits for specific verticals, such as energy & power, defense & security, agriculture, and forestry.
Based on vertical, Agriculture segment to exhibit highest CAGR in satellite data service market, from 2021-2026 forecast period. It is because satellite imagery helps in assessing detailed estimation of crop conditions and yields, the health status of the crops, and quality of vegetation.
The Data Analytics sub-segment is projected to grow at the highest CAGR during the forecast period. Rising demand for data analytics services, namely image data processing, feature extraction, digital models, and classification, required for developing GIS maps and analyzing data presented in a satellite image would boost the market.
The Government & Military sub-segment is forecast to capture the highest market share during the forecast period. Rising usage of high-quality satellite imagery in the defense sector of various nations to boost the market.
North America is expected to dominate the Satellite Data Services market during the forecast period, due to the maximum number of ongoing research studies and investments in this market, the existence of up-to-date infrastructure to undertake space programs, and the rapid, maximum adoption of commercial satellite imaging throughout various industries in the region.
(Source: MarketsandMarkets news release. Image from file)