Starshield, a version of Starlink devoted to national security applications, is a concern to some Earth observation companies.
Growth drivers: Factors like increased demand for high-resolution satellite imagery, defense sector needs, and advancements in satellite technology are driving this market growth
Earth observation companies wary of Starshield
Jeff Foust
September 19, 2024
PARIS — After seeing the disruption that Starlink has had on the satellite communications market, companies in the Earth observation sector are closely following the development of a related SpaceX system.
SpaceX announced the Starshield program in late 2022, billing it as a version of its Starlink satellites designed for national security applications. The company said that included Earth observation in addition to communications and hosted payloads.
“Starshield launches satellites with sensing payloads and delivers processed data directly to the user,” the company says on its website.
PARIS — After seeing the disruption that Starlink has had on the satellite communications market, companies in the Earth observation sector are closely following the development of a related SpaceX system.
- Executives with several Earth observation companies said during a panel at World Space Business Week here Sept. 19 that they are keeping tabs on SpaceX’s Starshield system, with some seeing competitive concerns and others opportunities for partnerships.
SpaceX announced the Starshield program in late 2022, billing it as a version of its Starlink satellites designed for national security applications. The company said that included Earth observation in addition to communications and hosted payloads.
“Starshield launches satellites with sensing payloads and delivers processed data directly to the user,” the company says on its website.
- The company has provided little other information about Starshield and its capabilities.
Despite the lack of public information, satellite Earth observation companies are monitoring it. “We take it very seriously,” said Eric Even, head of Space Digital at Airbus Defence and Space. “We did not need proof that it is very serious. We saw that with Starlink.”
While Starshield is intended for national security applications, it is a concern for an industry where two-thirds of the $6.6 billion in revenue it recorded in 2023 came from defense customers, according to data from Novaspace presented at the conference.
“The geospatial industry has always been very competitive,” he said, calling Starshield just the latest competitor companies like his must respond to.
“We continue to work on all the elements of the value chain so that the service always becomes better the final customers, whomever they are.”
Paolo Minciacchi, senior vice president of Telespazio, was even more concerned. “The real problem is that we are facing a situation where we have an entrepreneur who has a lot of money, more than a state, so can do very huge investments, and has the support of the U.S.A. government,” he said.
Paolo Minciacchi, senior vice president of Telespazio, was even more concerned. “The real problem is that we are facing a situation where we have an entrepreneur who has a lot of money, more than a state, so can do very huge investments, and has the support of the U.S.A. government,” he said.
“No single company can manage a competitive situation like that one.”
He called on other countries, including in Europe, to maintain sovereign systems of some kind even with Starshield.
He called on other countries, including in Europe, to maintain sovereign systems of some kind even with Starshield.
“We strongly need the support by our countries,” he said, including financial support.
“Because, without that, it’s impossible to compete with operators that can invest billions of euros in a very short time with the support of the U.S.A. government.”
Others saw opportunities to work together in some way with Starshield.
Others saw opportunities to work together in some way with Starshield.
- “Bringing in more players into the market helps the growth of the market,” said Minda Suchan, vice president of geo-intelligence at MDA Space.
- “As more people come into the Earth observation community, there’s just always more opportunities to partner, to have further conversations,” she said.
- “No one has the single solution to all the missions. You have to have that collaboration.”
“It creates an opportunity for us to partner,” said Andy Stephenson, senior vice president of global sales at BlackSky, discussing how his company brings in data from various partners in addition to its own imagery to provide insights for customers.
“The opportunity of more partners coming into the mix, into the fray, over time is going to help us.”
Starshield could also shake out any complacency in the industry, argued Barak Solomin, chief marketing officer at ImageSat International.
Starshield could also shake out any complacency in the industry, argued Barak Solomin, chief marketing officer at ImageSat International.
“We have to wake up every day to look in the mirror and ask what makes us special,” he said. If the answer is not convincing, “you probably need to disrupt.”
That could come through a greater embrace of artificial intelligence technologies, he said. “We can lead a disruption rather than try to block it.”
Anders Linder, general manager for international government at Maxar Intelligence, noted earlier in the panel that the industry could be doing more to grow the Earth observation market, which Novaspace projects to reach $9.2 billion by 2032.
That could come through a greater embrace of artificial intelligence technologies, he said. “We can lead a disruption rather than try to block it.”
Anders Linder, general manager for international government at Maxar Intelligence, noted earlier in the panel that the industry could be doing more to grow the Earth observation market, which Novaspace projects to reach $9.2 billion by 2032.
MORE COMPETITORS COMING IN
“I think the Earth observation market is not reaching its full potential,” he said. “If it’s Starshield or something else, there will be more competitors coming in.”
- He agreed that no single company will dominate the Earth observation market because of the varying needs of customers.
“I think it will spur it. It will be tough for us sometimes,” he said of any competition from Starshield. “I think it will make us better.”
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Via Satellite illustration.
PARIS — SpaceX’s Starshield now looms large over the Earth observation (EO) market as industry players look to grow revenues in a market that has not always lived up to the potential and hype.
SpaceX announced plans for its Starshield business line in late 2022, including building EO satellites to support national security efforts. Then in March of this year, Reuters reported that SpaceX received a classified contract from the National Reconnaissance Office (NRO) to build a network of spy satellites.
EO players are concerned about the impact SpaceX could have on competition in this market. Speaking at World Space Business Week in Paris last week, Paolo Minciacchi, senior vice president of Telespazio, said it could be tough for European companies to compete if SpaceX targets this market even more going forward.
“The real problem is that you have an entrepreneur who has limitless pockets and the support of the U.S. government. We will need financial support. We can’t compete with operators that can invest billions of dollars in a short space of time and have the support of the U.S. government. But, we think European governments would like to keep their own sovereignty.”
Eric Even, head of Space Digital for Airbus Defence and Space said the company takes Starshield very seriously. But he said the geospatial industry has always been very competitive and more companies could trigger new services and creativity in the market.
“We have seen it with Starlink and SpaceX [launch] and what they have done in their respective markets,” Even said. “We continue to work on all elements of the value chain, and improve services to defense and commercial customers. I think the industry is getting more mature, and as it does, there is more opportunity for consolidation.”
Minda Suchan, vice president of Geointelligence for MDA Space, said SpaceX’s presence could grow the overall EO market and lead to consolidation.
“It is really bringing in more players into the market. It will help grow the EO market,” Suchan said. I know [Starshield is] focused more on the defense side. But, as more people come into the EO community, there are more opportunities to partner. There is no one company that has a single solution to all missions. I think consolidation is always under consideration, I think you will see it in the future. Partnerships could lead to consolidation.”
Anders Linder, general manager of International Government for Maxar Intelligence agreed there will likely be consolidation, and said the EO market has not reached its full potential.
“There will be more competitors coming in. It is not like one will take everything. There will be a combination of different sensors. I think it will make us better. I definitely think we will see some consolidation,” Linder said.
Prior to the panel, consulting firm Novaspace forecast that the EO market was worth around $4.4 billion in 2019, $6.6 billion in 2023. Novaspace predicts the market will be worth $9.2 billion in 2032.
Linder believes the market can outperform potential forecasts here. “I think that if we were to stay just doing satellites [then the forecasts would be correct]. But, I think all of the players will do much more in terms of data services and analysis. I think we will overshoot in terms of growth. We have a job to proliferate this across all the desks of commercial users.”
Andy Stephenson, senior vice president of Global Sales for BlackSky, said with everything going on in the world, demand for EO services will go up and start to scale significantly. However, he pointed out customers are being judicious about how they are spending around EO, as they think about what capabilities they need and whether they need more dynamic models.
Suchan believes the current growth forecasts are realistic, and the market has faced challenges to growth.
“There is a lot of momentum moving us forward, but it is not moving as fast as we previously hoped,” she said. “Defense will be a very important market for EO data. There is a need and desire for more data. We also want the commercial market to continue to grow. I think things are shifting. There is interesting innovation taking place in the commercial market, and that is now moving to the defense market.”
Minciacchi believes European investment will make a difference for companies like Telespazio, citing the appointment of Lithuania’s Andrius Kubilius as European commissioner for defense and space.
“There is a trend in Europe to develop what I call ‘a third leg’, The first leg was Galileo. The second one is IRIS², the third one could see the EC invest a huge amount of money in defense capabilities. I think this would bring an important push into the market,” Minciacchi said.
Even said he saw the current growth forecasts as “slightly optimistic,” and sees countries starting EO adoption with a service-based approach while developing space-based assets over time.
Stephenson echoed these statements adding, “It is expensive building, launching, operating your own satellites. It is time consuming. You could spend hundreds of millions of dollars. Those services are already commercially available. Why would you need to replicate that? You don’t need to wait years to await delivery for a satellite.
- Satellite-Based Earth Observation Market Size was estimated at 6.06 (USD Billion) in 2022. The Satellite-Based Earth Observation Industry is expected to grow from 6.64(USD Billion) in 2023 to 15.2 (USD Billion) by 2032. The Satellite-Based Earth Observation Market CAGR (growth rate) is expected to be around 9.63% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Satellite-Based Earth Observation Market Trends Highlighted
The Satellite-Based Earth Observation (EO) market is experiencing significant growth driven by increasing demand for real-time data and sophisticated analytics for environmental monitoring, urban planning, and disaster management. The integration of Artificial Intelligence (AI) and Machine Learning (ML) is enabling advanced data processing and analysis, leading to more accurate and timely insights.Key opportunities for growth lie in the expansion of the commercial sector, with companies leveraging EO data for precision agriculture, infrastructure monitoring, and resource exploration. The increasing adoption of cloud-based platforms and data analytics services is further streamlining data access and utilization. Moreover, the rise of nanosatellites and constellations is reducing the cost of EO services and making data more accessible to a wider range of users.Recent trends in the satellite-based earth observation market include the emergence of high-resolution sensors that provide detailed imagery and data, the development of integrated platforms for data analysis and visualization, and the adoption of open data policies by governments. These advancements are fostering collaboration and innovation within the industry, leading to the development of new applications and solutions that address diverse challenges.
Satellite-Based Earth Observation Market Drivers
Growing Demand for Earth Observation Data
There are two perspectives on the major driver of the Satellite-Based Earth Observation Market Industry. From the demand side, the data is used in a vast array of applications throughout such industries as agriculture, forestry, environmental science, disaster monitoring, and others. These demands are driven by the increasing availability of space-based imagery, which is becoming more and more affordable, the availability of new ways to analyze these data to generate new types of valuable information, and, in general, the increasing awareness of the practitioners of these disciplines of their significance and importance as a source of the data.The supply perspective is shaped by the fact that supply will follow demand. It is expected that the demand for Earth-Observation data will go on to grow in the years to come. That growing demand will be driven by a host of factors, including an increasing adoption of precision agriculture techniques throughout the world, growing needs for environmental monitoring from around the world, growth in the frequency of natural disasters, etc. It is expected that the driving factors will force growth in the market overall and that the growth will be largely fueled by the increasing adoption of already existing satellite-based Earth-Observation technologies by a larger base of end-users.
Technological Advancements
The other major factor that is fuelling the growth of the Satellite-Based Earth Observation Market Industry is advancements in technology. Technological advancements have resulted in the development of new and improved satellite-based Earth observation technologies. These technologies are providing more accurate, timely, and detailed data than ever before. Technological advancements have also led to the development of small satellites, which are one of the most important technological advancements in the satellite-based Earth observation industry.Small satellites are less expensive to launch and operate than traditional satellites, and they can be deployed in constellations to provide more frequent and detailed coverage of the Earth’s surface. Another important technological advancement in the satellite-based Earth observation industry is the development of new sensors for satellite-based Earth observation satellites. These sensors are providing more accurate and detailed data than ever before, and they are enabling the development of new applications for satellite-based Earth observation data. Thus, the Satellite-Based Earth Observation Market Industry is another major factor in the growth of the market because continuous technological advancements in the near future are expected to result in the development of new and improved satellite-based Earth observation technologies, which will provide more accurate, timely, and detailed data than ever before.
Government Initiatives
The development of the Satellite-Based Earth Observation Market Industry is also driven by government initiatives. Governments all over the world invest in satellite-based Earth observation programs that can be used in many areas, such as agriculture, forestry, environment, or disaster. One of the central government initiatives in the satellite-based Earth observation industry is the development of GEOSS. GEOSS is implemented through a broad international partnership between governments and organizations.It is a comprehensive, end-to-end, Earth observation system that has been deployed to improve the development and use of satellite-based Earth observation data. GEOSS ensures that such data is available to all users in the most powerful way. Moreover, GEOSS provides a framework for the use and application of satellite-based Earth observation data. One of the main advantages of this fact is the growing government support for these technologies.More and more governments all over the world understand that it is much more effective to work together under the GEOSS framework than to develop and use Earth observation systems individually.
Satellite-Based Earth Observation Market Segment Insights
Satellite-Based Earth Observation Market Application Insights
The Satellite-Based Earth Observation Market is divided into different applications that include agriculture, forestry, land use and land cover mapping, water resources management, oceanography, climate monitoring, disaster management, national security, and infrastructure monitoring. Of these, agriculture and forestry are likely to be at the forefront and are likely to account for a healthy market share over the forecast timeframe. This is because there is a fast-growing need for the monitoring of crops, yield estimation, and the use of cutting-edge farming techniques.When it comes to agricultural practices, it would be pertinent to mention that the health of a crop is monitored through satellites that observe varied portions of the unit through spectral images. This further aids in determining the moisture levels of the soil and if there is a possible attack of parasites. In the case of the forestry industry, there is a pressing need for satellite-based earth observation as it is being used to prepare data pertinent to forest inventory, identify areas that may be subject to deforestation, and detect any sort of wildfire.Critically, this data has to be gleaned by experts in forestry through the scrutiny of satellite images. The extent to which satellites are likely to make a difference is that the area and health of forests are known accurately. In the case of land use and land cover mapping, satellite images are being used to distinguish between regions defined by varied types of land use. Here, land use refers to land that is possibly under agriculture, water bodies, forests, and urban areas. By now, the relevance of satellite data for green cover loss should be highly evident, and much of this is not confined to forest areas alone.In the case of water resources management, water quality can be determined by monitoring pollution through hazardous chemical discharges. As such, it is absolutely critical to outline then that the parameter segment, throughout the forecast timeline of the Satellite-Based Earth Observation Market, has the potential to grow.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Satellite-Based Earth Observation Market Product Insights
The Satellite-Based Earth Observation Market is segmented by Product into Satellite Imagery, Satellite Data, Satellite-derived Products, and Satellite Services. The Satellite Imagery segment held the largest market share in 2023, accounting for over 40% of the Satellite-Based Earth Observation Market revenue. This segment is expected to continue to grow at a significant rate during the forecast period, driven by the increasing demand for high-resolution satellite imagery for various applications such as land use planning, agriculture, and environmental monitoring.The Satellite Data segment is also expected to witness significant growth, owing to the rising demand for real-time and historical satellite data for weather forecasting, climate monitoring, and disaster management. Satellite-derived Products and Satellite Services segments are also expected to contribute to the overall growth of the Satellite-Based Earth Observation Market, as these segments offer value-added services such as data analysis, interpretation, and consulting.
Satellite-Based Earth Observation Market Platform Insights
The Platform segment of the Satellite-Based Earth Observation Market is categorized into Small Satellites, Medium Satellites, Large Satellites, Constellations, and Ground Stations. In 2023, the revenue generated by the Small Satellites segment was estimated to be around USD 2.3 billion, with a projected growth rate of 10.3% CAGR, reaching USD 4.2 billion by 2032. Medium Satellites held a significant market share, valued at USD 2.7 billion in 2023, and is anticipated to reach USD 5.1 billion by 2032, exhibiting a CAGR of 9.9%. Large Satellites, with their advanced capabilities, garnered a market valuation of USD 1.6 billion in 2023 and are poised to expand to USD 3.0 billion by 2032, reflecting a CAGR of 9.1%.Constellations, comprising multiple satellites working in coordination, contributed USD 2.5 billion to the market revenue in 2023 and are projected to reach USD 4.6 billion by 2032, growing at a CAGR of 9.4%. Ground Stations, responsible for communication and data relay between satellites and Earth, held a market value of USD 1.8 billion in 2023 and are expected to reach USD 3.3 billion by 2032, expanding at a CAGR of 9.2%. The growth of the Platform segment is driven by factors such as increasing demand for Earth observation data for various applications, advancements in satellite technology, and government initiatives promoting space exploration and Earth monitoring.
Satellite-Based Earth Observation Market End User Insights
Within the end user segment, the commercial sector is anticipated to dominate the Satellite-Based Earth Observation Market revenue, accounting for over 50% of the market share in 2023. The commercial sector utilizes satellite-based earth observation data for various applications, such as infrastructure monitoring, precision agriculture, and environmental monitoring. The government and public sector are expected to witness steady growth, driven by increasing investments in defense and security applications. Research and Academia are also significant end users, leveraging satellite data for scientific research, climate modeling, and disaster management.Overall, the end user segmentation provides valuable insights into the diverse applications and growth drivers within the Satellite-Based Earth Observation Market.
Satellite-Based Earth Observation Market Regional Insights
The regional segmentation of the Satellite-Based Earth Observation Market offers insights into the market's geographic distribution and growth potential. North America holds a significant share of the market, driven by factors such as advancements in technology, a strong aerospace industry, and government investments in space exploration. Europe follows closely, with a focus on environmental monitoring, land-use planning, and disaster management. APAC is witnessing rapid growth, primarily due to increasing demand for satellite data for urban planning, infrastructure development, and agricultural monitoring.South America and MEA are emerging markets with growing demand for satellite-based earth observation services for resource exploration, environmental conservation, and disaster risk reduction.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Satellite-Based Earth Observation Market Key Players And Competitive Insights
Satellite-Based Earth Observation Market is a highly competitive market where major companies compete in their technology offerings and geological coverage.
All the major companies are investing hugely in their research and development to provide a better product than their competitors. Some companies are also partnering with local companies to expand their market reach around the world. Satellite-Based Earth Observation Market has gained crucial importance in recent years, with various industries requiring satellite images for a comprehensive market view and to better understand their environment. Developing highly accurate technology offerings has become important, as the competitive advantage of the company depends on the accuracy of the images taken by the satellite. Since the technology in the satellite-based earth observation market is changing rapidly, the competition in the market is expected to remain intense in the coming years. In such a situation, major companies are expected to focus on value-added service offerings to differentiate their products in the market.
Maxar Technologies operates one of the largest earth observation satellite companies, and the company is based in the United States and Canada. The company offers a wide range of satellite-based services, specifically high-resolution imagery and radar data for various applications. The company covers a wide area ranging from satellite robotics to consumer technology. The company operates Earth Optical Capability, Earth Radar Expertise, Earth Analytics Professional, and Satellite Solutions. Maxar Technologies performs most of its operations in Colorado, United States. Maxar Technologies has a strong market presence in both North America and the European equivalent of the United States. The company is also expanding its market coverage in the fast-growing Asia-Pacific and Latin American markets. Airbus Defence and Space is another major player in the satellite-based earth observation service market. United Kingdom Interceptor has operational Synchronous Orbiting Satellites, and six more are planned to launch, whereas four polar-orbiting satellites are currently operational, with 2 more to launch soon. The company is one of the leading suppliers of satellite data to several governments and commercial companies across the world. These satellites have high-resolution optical systems that could be used in the best possible application of satellite-based earth observation to provide an earth image at around 72-90 cm of resolution. Planet Labs similarly operates 181 optical and 51 small radar Satellites that provide Satellite imagery that can be used in various Earth observation applications.
Key Companies in the Satellite-Based Earth Observation Market Include
Satellite-Based Earth Observation Market Industry Developments
The Satellite-Based Earth Observation market is anticipated to expand significantly, driven by the rising demand for real-time and accurate Earth observation data for various applications. In 2023, the market was valued at USD 6.64 billion and is projected to reach USD 15.2 billion by 2032, exhibiting a CAGR of 9.63% during the forecast period. Key factors contributing to this growth include increasing investments in space programs, advancements in satellite technology, and growing adoption of Earth observation data in sectors such as agriculture, environmental monitoring, and disaster management. Recent developments in the market include the launch of new satellites with enhanced capabilities, the emergence of cloud-based platforms for data processing and analysis, and the growing adoption of artificial intelligence (AI) and machine learning (ML) for data interpretation.
Satellite-Based Earth Observation Market Segmentation Insights
Satellite-Based Earth Observation Market Application Outlook
Agriculture
Forestry
Land use and land cover mapping
Water resources management
Oceanography
Climate monitoring
Disaster management
National security
Infrastructure monitoring
Satellite-Based Earth Observation Market Product Outlook
Satellite Imagery
Satellite Data
Satellite-derived Products
Satellite Services
Satellite-Based Earth Observation Market Platform Outlook
Small Satellites
Medium Satellites
Large Satellites
Constellations
Ground Stations
Satellite-Based Earth Observation Market End User Outlook
Government and Public Sector
Commercial Sector
Research and Academia
Satellite-Based Earth Observation Market Regional Outlook
North America
Europe
South America
Asia Pacific
Middle East and Africa
Source: https://www.marketresearchfuture.com/reports/satellite-based-earth-observation-market-22862
Maxar Technologies operates one of the largest earth observation satellite companies, and the company is based in the United States and Canada. The company offers a wide range of satellite-based services, specifically high-resolution imagery and radar data for various applications. The company covers a wide area ranging from satellite robotics to consumer technology. The company operates Earth Optical Capability, Earth Radar Expertise, Earth Analytics Professional, and Satellite Solutions. Maxar Technologies performs most of its operations in Colorado, United States. Maxar Technologies has a strong market presence in both North America and the European equivalent of the United States. The company is also expanding its market coverage in the fast-growing Asia-Pacific and Latin American markets. Airbus Defence and Space is another major player in the satellite-based earth observation service market. United Kingdom Interceptor has operational Synchronous Orbiting Satellites, and six more are planned to launch, whereas four polar-orbiting satellites are currently operational, with 2 more to launch soon. The company is one of the leading suppliers of satellite data to several governments and commercial companies across the world. These satellites have high-resolution optical systems that could be used in the best possible application of satellite-based earth observation to provide an earth image at around 72-90 cm of resolution. Planet Labs similarly operates 181 optical and 51 small radar Satellites that provide Satellite imagery that can be used in various Earth observation applications.
Key Companies in the Satellite-Based Earth Observation Market Include
- BAE Systems
- Airbus
- Northrop Grumman
- ImageSat International
- UrtheCast
- DigitalGlobe
- SSTL
- Maxar
- BlackBridge
- Planet
- Lockheed Martin
- Thales Alenia Space
- TRE Altamira
- Fugro
- SpaceKnow
Satellite-Based Earth Observation Market Industry Developments
The Satellite-Based Earth Observation market is anticipated to expand significantly, driven by the rising demand for real-time and accurate Earth observation data for various applications. In 2023, the market was valued at USD 6.64 billion and is projected to reach USD 15.2 billion by 2032, exhibiting a CAGR of 9.63% during the forecast period. Key factors contributing to this growth include increasing investments in space programs, advancements in satellite technology, and growing adoption of Earth observation data in sectors such as agriculture, environmental monitoring, and disaster management. Recent developments in the market include the launch of new satellites with enhanced capabilities, the emergence of cloud-based platforms for data processing and analysis, and the growing adoption of artificial intelligence (AI) and machine learning (ML) for data interpretation.
Satellite-Based Earth Observation Market Segmentation Insights
Satellite-Based Earth Observation Market Application Outlook
Agriculture
Forestry
Land use and land cover mapping
Water resources management
Oceanography
Climate monitoring
Disaster management
National security
Infrastructure monitoring
Satellite-Based Earth Observation Market Product Outlook
Satellite Imagery
Satellite Data
Satellite-derived Products
Satellite Services
Satellite-Based Earth Observation Market Platform Outlook
Small Satellites
Medium Satellites
Large Satellites
Constellations
Ground Stations
Satellite-Based Earth Observation Market End User Outlook
Government and Public Sector
Commercial Sector
Research and Academia
Satellite-Based Earth Observation Market Regional Outlook
North America
Europe
South America
Asia Pacific
Middle East and Africa
Source: https://www.marketresearchfuture.com/reports/satellite-based-earth-observation-market-22862
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