Satellite-based EO: Key market research findings
- Increase in R&D investments
- Widening application base of EO satellites
Technavio has released a new market research report on the global satellite-based EO market, which is expected to grow at a CAGR of more than 14% between 2016 and 2020. Satellite-based earth observation (EO) involves the gathering of vital information affecting the earth’s structure through remote sensing satellites. By January 2014, around 190 such satellites were orbiting the planet and this number is expected to increase to more than 350 EO satellites by the end of 2022. North America occupies 48% of the total market share, as the majority of the global demand for earth observation data and value-added services comes from this region.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Vendors in the market have intensified their R&D efforts to develop advanced equipment, including superior lenses. They are also developing advanced remote sensing technologies and high-resolution cameras to improve the quality of images captured by satellites. These improvements have seen a marked increase in demand from areas such as weather information and forecasting, farming, climate change, ocean trends, and forestry,” says Rakesh Panda, Lead Analyst, ICT, Technavio Research.
EO satellites are used to access data and satellite images pertaining to civil construction, weather forecast, climate, disasters, agriculture, and biodiversity. Almost 45 countries have already launched EO satellites for a variety of purposes. Due to high requirements for remote sensing and meteorology across mining, oil and gas, defense and intelligence, agriculture, and forestry sectors, the companies worldwide are encouraged to foray into the market.
The key vendors in the global satellite-based EO market are Airbus Group, DigitalGlobe, DMC International Imaging, ImageSat, and MDA. This market is moderately competitive due to the presence of few players. Most EO applications are dominated by government agencies, who prefer to have a long-term partnership with the vendors. This research report anticipates the competition in this market to intensify over the next four years due to the growing demand for satellite-based data and VAS. To meet this increased demand, players have been seeking entry into the data and VAS segment. Vendors have also started using M&A as a strategy to enhance their service delivery. For instance, Google acquired Skybox Imaging for $500 million during 2014. This acquisition is expected to improve the accuracy of its data and enable the provision of up-to-date imagery for Google Earth and Google Maps.
A more detailed analysis is available in the Technavio report, Global Satellite-based EO Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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