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Earth observation opportunities expected to develop in emerging markets
11 September 2013
According to Euroconsult's recently published research report, Satellite-Based Earth Observation: Market Prospects to 2022, the number of Earth observation (EO) satellites launched by civil government and commercial entities is expected to more than double over the next decade to 360 satellites, translating into $35.8 billion in manufacturing revenues over 2013 to 2022, an 88% increase over the previous decade. New government and commercial entrants are anticipated, with organisations from 42 countries expected to have launched at least a first-generation EO satellite by 2022.
The market for commercial EO data was valued at $1.5 billion in 2012. Growth slowed to 7% over 2011 as a result of the stabilisation of U.S. defence procurement; however North America maintains the largest market share with 55% of the total commercial data market. The U.S. NGA will also remain the first customer of commercial data in 2013 despite its reduction in data procurement, an action which led to the combination of the U.S. operators DigitalGlobe and GeoEye in 2013. The net effect of this reduced procurement over 2012 to 2013 will however result in 0% growth in the industry, a figure which disguises growth opportunities elsewhere.
Although manufacturing revenues will experience a significant rise, the average cost of an EO satellite (excluding meteorology) continues to fall. This is due in the main part to a growing number of satellites being launched from more cost-sensitive emerging national programs. In total over 2013-2022, 69% of EO satellites will cost less that $100 million (compared to 56% in the last decade).