According to the 10th edition of the Euroconsult report, the market for remote sensing data and services should reach $ 8.5 billion by 2026, based on current growth trends. Also an alternative model of value-added services (VAS) with a total market potential of $ 15 billion is presented.
This growth model takes into account the consequences of the emergence of new solutions that help to open new markets. It is also expected that the successes in the field of artificial intelligence and in-depth training will prove useful for this sector, acting as tools for new solutions based on the analysis of the definition of change.
Drivers of data and services growth are completely different. Defense continues to dominate the commercial data market, with only this sector accounting for more than $ 1 billion in sales, with emphasis on data sets with high resolution and high accuracy. It is expected that the prices for data supporting defense applications will remain high, which is a drawback for the development of services in the civil administration and in the private sector.
The main markets for VAS are infrastructure and natural resource monitoring, but low-cost or free solutions are often used to create such solutions. This creates a discrepancy in the value chain in which high-cost precision data sets constitute the most significant part of the market for defense-oriented commercial data, while more services are built on less expensive and more competitive solutions.
According to Pacomé Revillon, CEO of Euroconsult, companies (both operators and new service providers such as Orbital Insights, AllSource Analysis, etc.) create algorithms for detecting changes using data from various sources in order to identify patterns and create predictive analytics. The introduction of high-frequency data into these models, the so-called “Big Data” environment, will further improve, with the possibility of new areas of services based on location systems such as financial intelligence and object monitoring.
Euroconsult has identified about 20 companies that have announced intentions to create low-cost space groupings based on smallsat and cubesat technologies to provide data with a high retrieval rate. As of 2017, these new operators have attracted venture capital of more than $ 600 million to fund their initiatives. None of the recently announced initiatives have yet reached full capacity; to create these groups will require additional investment.
It is expected that in the sphere of proposals competition will be tough, as companies are forced to differentiate in the market and introduce innovative solutions to maintain their market share. The merger processes (such as MDA and DigitalGlobe, OmniEarth and EagleView, Terra Bella and Planet) may slow down as companies improve their business models and continue to seek investment.
DigitalGlobe, for example, seeks to use the cheaper satellite grouping (Legion) in the near future to counter the likely impact of low-cost solutions entering the market. Airbus will also develop its own high-resolution optical space system, given that the next-generation French system designed to solve defense tasks will not be commercialized.
From 2007 to 2016, 181 Earth remote sensing satellites were launched (excluding meteorological satellites); The cost of developing these satellites was $ 17.4 billion. Over the next decade, it is necessary to launch more than 600 Earth remote sensing satellites (weighing more than 50 kg, excluding meteorological satellites) to meet the demand for data. It is expected that about 50 countries will have satellites, and more than half of them will belong to the private sector; this is believed to lead to an increase of more than $ 33 billion in revenue from production in the market.
In aggregate, developing programs can be at a market value of 4 billion US dollars (12% of the total). This indicator remains significant, since most of the export opportunities are associated with new programs, while the developed government remote sensing programs have certain limitations.
Source: Sovzond News Letter (Email)