Satellite Data Services Market

Global Satellite Data Services Market Size & Growth (2023 – 2028)

The global satellite data services market is foreseen to expand from USD 7.5 billion in 2022 to reach USD 23.4 billion by 2028, registering a CAGR of 21.0% over the outlook period from 2023 to 2028. The satellite data is used for observing earth, providing information on the chemical, physical, and biological characteristics of the earth. Key advancements in geospatial imagery examination combined with the application of AI and big data, privatization of the space industry and increasing demand of small earth observation satellites is driving the market.

Satellite data services involve providing data about earth, which is generated and gathered by man-made satellites revolving round the earth’s orbit. Satellite data, which incorporates information about the chemical, physical, and biological characteristics of the earth, is most ordinarily utilized in the observation of earth. The worldwide satellite data services market is in emerging state and is projected to grow at a substantial rate during the forecast period (2020–2025). The market is fueled by substantial advancements in geospatial imagery analytics including introduction of AI (AI) and big data, privatization of the space industry, and increasing demand for small satellites for earth observation.

Recent Developments:

• Mar-2020: Planet Labs contracted partnership agreement with Seisan which is a custom software solution and systems integration company.
• Feb-2020: L3Harris signed an agreement with The Air Force Life Cycle Management Center. The agreement aims to develop a software platform that might make it easier for analysts to use AI (AI) to spot objects in large data sets.
• Jan-2020: L3Harris extended its deal with exactEarth Ltd., a leading company offering Satellite-AIS data services. The agreement is likely to deliver a reduced and streamlined cost structure for L3Harris' data services.

Impact of Covid-19 on Satellite Data Services Market

Economic crisis occurring because of lockdown across the globe affects the investment and production greatly. The coronavirus outbreak has caused lockdown of the manufacturing factories and as a result, there's an interruption within the production cycle. Accordingly, the availability chain has also got affected. Research and development activities for vaccine technology are going to be limited, as researchers got to occupy home during the lockdown. It also has affected the Satellite Data Services Market. Not very severely but the impact is there as expected. Migrant employees and laborers will return to their native countries, which successively, will impact the economy of the countries they were employed in. However, they need better skills and knowledge, which may favor their native countries.

Market growth and trends:

Increased adoption of AI and machine learning (ML) within the space sector has created numerous opportunities for service providers to supply AI and ML integrated solutions. The AI-based platforms provide deep insights on complex factors like social, industrial, and economic processes. ML algorithms are increasingly wont to process daily satellite imagery to classify and detect objects, locate geographic and topographic features, and to watch minute changes over a span of your time. Defense contractors, like Lockheed Martin Corporation has developed a satellite imagery recognition system, the Global Automated Target Recognition (GATR). This technique leverages open-source deep learning libraries to classify and identify big datasets during a faster and more efficient method.

Satellite data is widely utilized in the event of smart cities and connected vehicles. The urban planners are using these data to know settlement trends and ensure efficient infrastructure management. Increased usage of remote sensing technology for zoning and city infrastructure modeling, has helped in meeting the incrementing demands from city-based populations towards better management of sustainable urban development. Additionally, rising urban agglomeration and monitoring urbanization of adjoining areas to enable smart town planning and implementation is further augmenting satellite imagery adoption.

Market Drivers and Restraints:

Privatization of the space industry is one among the main factors boosting the expansion of the global satellite data services market. The target of privatizing the industry is to expand upon the use of the industry landscape by exploring opportunities where the private sector can provide enjoy satellite services. As an example, the newest commercial service agreements cost only about $50 million per spacecraft launch, while earlier this cost was about $4 billion per annum.

In addition, the increasing number of satellites within the space and up surging data generation through these satellites are further benefiting the expansion of the market. For instance, in the beginning of 2020, Space Exploration Technologies Corp. (SpaceX) became the primary company to work largest active satellite constellation across the planet, with 180 satellites orbiting the world. The company further aims to launch about 42,000 satellites over subsequent decade, which is around 21 times the amount of satellites operating within the space at the present. Such factors are propelling the expansion of the global satellite data services market.

GLOBAL SATELLITE DATA SERVICES MARKET REPORT COVERAGE:

Market Segmentation:

Global Satellite Data Services Market - By Vertical:

• Energy & Power
• Engineering & Infrastructure
• Defense & Security
• Environmental
• Agriculture
• Maritime
• Forestry
• Transportation & Logistics
• Insurance
   

Global Satellite Data Services Market - By End-Use:

• Commercial
• Government & Military
   

Global Satellite Data Services Market - By Service:

• Data Analytics
• Image Data

Regional Analysis:

North America dominated the marketplace for satellite data services by capturing over 33% revenue share in 2019. The formulation of the new National Space Strategy enables the govt to partner with companies within the commercial sector such they will establish a prominent defense system against threats from space-bound attacks. Additionally, U.S. distributes images captured by the Landsat satellite freely, thus promising productivity saving and economic benefits for users. Such initiatives have resulted within the emergence of several small satellite manufacturers that provide continuous feed about the earth’s surface.

Europe captured significant market share in 2019 and is predicted to exhibit a gradual rate of growth over the forecast period. The European Union has collaborated with other international institutions to introduce several acts and initiatives like the Common Agriculture Policy (CAP), the UN Convention for Combating Desertification and Land Degradation, and the Soil Framework Directive. These institutions leverage data provided by the Copernicus Hyperspectral Imaging Mission for the Environment (CHIME) mission for purchasers. Moreover, economies including The Netherlands have devised their own imagery portal, the National Satellite Data Portal, managed by Netherlands Space Office (NSO) to strategically manage the demand and provide side of its satellite-based imagery.

Key market players:

The major players within the global satellite data services market are Airbus SE (Netherlands), Harris Geospatial Solutions, Inc (US), DigitalGlobe (US), Satellite Imaging Corporation (US), Planet Labs, Inc.(US), ICEYE (Finland) and Land Info Worldwide Mapping (US), among others. These players have adopted various growth strategies like contracts, acquisitions, expansions, new product launches, and partnerships & agreements to expand their presence within the satellite data services further.