The global satellite data service market size was valued at USD 6.55 billion in 2021, envisioned to reach USD 27.07 billion growing at a CAGR of 19.4% during the forecast period.
Satellite data service gathers data about the Earth from artificial satellites around the planet. Satellites provide data about the planet's surface and weather conditions. Satellite data services involve imaging satellites to capture photos of Earth and other planets. Commercial satellite imaging is the use of these pictures for commercial purposes. Commercial satellite imaging encompasses a wide range of applications, including the monitoring and management of the environment, the protection of energy resources, the monitoring of border regions, and the mapping of constructional projects. In addition, earth imagery is vital for numerous applications, such as infrastructure planning and construction, exploring new energy sources, disaster management, green mapping, traffic control, and topographical mapping.
The market expansion is anticipated to be driven by factors such as the surge in demand for satellite data from different business verticals, the rise in the need for earth observation satellites, and the privatization of the space industry. However, strict government requirements for satellite installation and a dearth of specialized launch vehicles for small satellites impede the market's expansion. In addition, an increase in the adoption of artificial intelligence (AI), machine learning (ML), and cloud computing in the space industry, an increase in the use of satellite data in the development of smart cities and connected vehicles, and an increase in the NewSpace movement are some of the aspects that are estimated to offer lucrative growth opportunities for the satellite data services market
The Growing Demand from Various Industries and for Earth Observation Satellites
Satellite data services aid in storing and delivering all data to appropriate operators. The military & defense, and agriculture departments utilize these services the most. In addition, the increase in unpredictability of the atmosphere due to global warming raises the demand for satellite data services in the departments of earth observation and catastrophe management. In addition, the growing use of satellite data for mapping applications like Google Earth and Bing Maps, Geographic Information Systems (GIS), oil & mineral exploration, and 3D city models increases the need for satellite data services.
In addition, the increasing utilization of satellite data for land mapping, hazard mitigation planning and restoration, autonomous cars, and maritime operations drives the demand for data services. Demand for satellite data services from various industrial verticals, such as agriculture, energy & power, engineering & infrastructure, environmental, and maritime, drives market expansion. Additionally, earth observation satellites are utilized for non-military applications such as environmental monitoring, meteorology, and cartography. Global warming is a topic that is well-known in every country. Additionally, these nations are implementing measures to reduce or manage it.
In addition, the demand for ortho-imagery for base maps of wetland, soil, farm-field boundary, forest inventory, and other natural-resource mappings, analysis, and planning applications increases the need for earth observation satellites. Thereby, there has been an increase in demand for earth observation satellites for such applications, which is anticipated to fuel the expansion of the satellite data services market.
Strict Regulations for Deployment and Use of Satellite
To prevent harmful interference with satellite data usage, governments around the globe have established tight regulations on the deployment of commercial satellites. In addition, several governments have regulated satellite-imaging firms out of concern that geopolitical foes may purchase photographs for malicious purposes, compromising national security. In addition, each national authority may have a unique regulatory framework, making it challenging for private enterprises to provide cost-effective and high-quality satellite data services. In addition, operators that wish to launch satellites must fulfill other regulatory requirements, like satellite landing rights, frequency licensing, telecommunication licensing, and type clearance. Therefore, it is anticipated that stringent regulations for the deployment and utilization of satellite data will hamper the market for satellite data services.
Increasing Adoption of AI, Machine Learning, and Cloud Computing in the Space Sector
Social, industrial, and economic processes, among others, were previously unreachable until the advent of AI-based platforms. In addition, Machine Learning (ML) techniques are being utilized to classify and detect objects, find geographic and topographic characteristics, and track minute changes over time using daily satellite data. In addition, automated ML and AI algorithms can reliably recognize a variety of earthly objects observable from space, such as cars in parking lots, crop yield, and geo sensing in agricultural fields. Cloud computing enables enterprises to access historical data for the sake of analysis. AI and ML can also monitor and analyze satellite-based aerial views. Thus, the surge in the space industry's adoption of artificial intelligence (AI) and machine learning (ML) has created several opportunities for the satellite data services market to expand.
The global satellite data service market is classified based on vertical, service, end-use, and region.
Based on vertical, the fragments are energy & power, defense & intelligence, engineering & infrastructure, environmental, agriculture, maritime, insurance, and transportation & logistics.
The environmental segment is projected to advance at a CAGR of 19.2% and hold the largest market share. The purpose of satellite data services is to comprehend and analyze environmental conditions globally and geographical information. This encompasses agriculture, forestry, geology, disasters, and natural resources monitoring. Increased adoption and utilization of earth observation satellites are the key drivers driving market expansion for satellite data services in the environment sector. Technological breakthroughs in satellite imagery and image-enhancing equipment such as high-resolution cameras and superior remote-sensing technologies have improved satellite-based environmental observation images, driving the satellite data service market share.
The defense & intelligence segment will hold the second-largest share. The satellite data service is utilized by defense and intelligence for various reasons, including monitoring, remote sensing, surveillance, and weather changes. The surge in anti-national and terrorist actions has increased national security concerns and necessitated ongoing surveillance and monitoring, likely increasing the defense and intelligence sector's utilization of satellite data services. In addition, the increased usage of unmanned aerial vehicles (UAVs) in military applications has necessitated satellite data for ongoing guiding and navigation.
Based on service, the fragments include data analytics and image data.
The image data segment is projected to advance at a CAGR of 18% and hold the largest market share. Image data entails several phases of gathering information in the form of images using imaging satellites. This provides geospatial information and data in the form of real-time photographs. Increased adoption of location-based services (LBS) by various end-users, such as commercial businesses, government, defense, civil engineering, forestry and agriculture, insurance, and energy, is anticipated to drive market expansion. The increasing need for high-resolution satellite imagery in emergency services, homeland defense, data evaluation, etc., is expected to drive the image data satellite services market.
The data analytics segment will hold the second-largest share. Data analytics employs algorithms and advanced machine learning to provide strategic and commercial insights. One of the key elements driving the expansion of satellite data services for the data analytics segment is the increase in demand for geographic information system (GIS) services. In addition, governments are focused on enhancing disaster and environmental management through analyzing satellite-collected data, which is anticipated to drive market expansion.
Based on end-use, the fragments include commercial and government & military.
The government & military segment is projected to advance at a CAGR of 18.9% and hold the largest market share. Government and army organizations utilize satellite data services mainly to compile maps, military surveillance, urban planning, and disaster management, among other purposes. The segment's growth can be linked to military security and surveillance applications, which have been a defense organization's fundamental functions. In addition, Earth observation satellites are gaining appeal in defense & security and government tasks, particularly monitoring and planning operations. These factors are anticipated to propel expansion in the government & military segment of the satellite data service market.
The commercial segment will hold the second-largest share. Commercial uses of satellite data services, such as the selection of construction sites, analysis of nearby neighborhoods, route maps, supervision of infrastructure projects, and 3D modeling of excavations, are highly efficient. Increasing utilization of satellite data services in maritime navigation, pipeline system design, and broadcasting applications is one of the key factors driving the expansion of the satellite data service market. Several agriculture and farming companies use satellite imagery data to monitor post-harvest vegetation and improve soil conditions.
The region-wise segmentation of the global satellite data service market includes North America, Europe, Asia-Pacific, and LAMEA.
North America And The Asia Pacific Will Dominate The Regional Market
North America will command the market with the largest share while growing at a CAGR of 19.6%. Multiple government organizations in the region are making substantial investments to enable the deployment of commercial satellites, which is anticipated to stimulate future growth in satellite data services. North America's satellite data service market is expected to be driven by sophisticated infrastructure for space projects and the earliest and highest adoption of commercial satellite imagery across numerous industries. In addition, growing worries regarding satellite-based surveillance present significant growth potential for the North American sector.
Asia Pacific will hold USD 7,818 million, growing at a CAGR of 19.4%. The expansion of the satellite data service market in the Asia-Pacific region is fueled by the governments of various countries, including India and China, to strengthen their respective nations' agriculture and defense sectors. Increased adoption of satellite imaging and data analytics by authorities like India, China, and Singapore to aid in urban infrastructure development and planning, as well as to monitor ocean and agriculture under precision agriculture modules, supports the satellite data service market growth in the area. In 2020, for example, the Jiuquan Satellite Launch Center in China's northwest launched the new ocean-monitoring satellite HY-2C. It can observe wave height, sea surface height, wind speed, direction, and temperature 24 hours a day, seven days a week, regardless of the weather or time of day.
list of key satellite data service market companies profiled
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