Satellite-based Earth Observation Market Size

Satellite-based Earth Observation Market Analysis

The Satellite-based Earth Observation Market size is estimated at USD 4.04 billion in 2024, and is expected to reach USD 5.54 billion by 2029, growing at a CAGR of 6.52% during the forecast period (2024-2029).

Satellite-based earth observation is a process of collecting information related to the Earth's various issues using remote sensing. It is used in various applications that impact human life and the environment. Space technology offers vital information that helps address development challenges. Earth observation satellites have been collecting data from space, providing valuable insights into the Earth's natural and artificial environment, how its regions change over time, and what policy-makers can do to mitigate these changes. This data is used by agencies and institutions working in development, aid, and relief.

• The European Commission has recently introduced legislation aimed at tackling global deforestation. As a result, operators who sell deforestation-related commodities are now required to conduct mandatory due diligence. Companies must obtain geographical information about the land where their products are produced to ensure that only deforestation-free goods are sold in the EU market. This development has led to increased demand for satellite data for supply chain tracking, contributing to the market's growth.
• The increasing demand for efficient monitoring of vast land areas is indeed driving the growth of the satellite-based Earth observation market. This surge is attributable to the need to manage and observe natural resources, urban development, agricultural activities, environmental changes, and security concerns on a global scale.
• Smart city initiatives are driving the demand for satellite-based Earth observation technology. These initiatives utilize satellite data for various purposes like urban planning, infrastructure management, environmental monitoring, and disaster response. As smart cities strive for efficiency and sustainability, satellite-based Earth observation provides real-time data and insights for informed decision-making and effective resource allocation. Consequently, the increasing adoption of smart city initiatives worldwide is fueling the growth of the satellite-based Earth observation market.
• Open-source data is often freely available, reducing the barrier to entry for businesses and researchers compared to purchasing proprietary satellite data. The open-source data is more accessible to a wider range of users, enabling greater innovation and development of applications in areas such as agriculture, urban planning, and environmental monitoring.
• During recessions, governments often tighten their budgets, leading to cuts in discretionary spending. This may impact investments in space programs and environmental monitoring initiatives, which are major consumers of Earth observation data. Recession creates economic uncertainty, causing businesses to become more cautious with their investments. Thus, companies might postpone or reduce their spending on satellite imagery and related services, especially when the perceived value proposition needs to address immediate financial concerns directly.