Satellite Data Services Market by Services (Image Data, Data Analytics, and Others), Application (Scientific, Administrative, and Commercial), End-use (Aerospace & Defense, Energy & Power, Agriculture & Environment, Engineering & Infrastructure, Maritime, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Global Satellite Data Services Market Analysis

The global satellite data services market is predicted to garner a revenue of $22,431.6 million in the 2021–2028 timeframe, growing from $8,357.9 million in 2020, at a healthy CAGR of 12.7%.

Market Synopsis

The growing demand for satellite imagery data among different sectors like agriculture, construction, mining, and others is anticipated to be a major driving factor for satellite data services market.

However, strict regulations related to satellite data services set by the government might restrain the market growth during the forecast period. 

According to the regional analysis of the market, the Asia-Pacific satellite data services market forecast is anticipated to be at a CAGR of 13.5% by generating a revenue of $5,926.4 million during the review period.

Satellite Data Services Market Overview

Satellite data services collect the data about earth which is surrounded by manmade satellites in their orbits. Satellites capture the images of earth or the images of other planets and deliver information, respectively. These images shared by the satellites are used for different purposes like commercial, government, and others. Utilizing the imagery data shared by satellites for the commercial purposes is known as commercial satellite imaging which also includes different applications like environment monitoring & management, surveillance of border areas, security of energy resources, and mapping of constructional projects. Moreover, satellite data services are highly used in defense & security sector of a nation, urban planning, and others. The most common use of satellite data services is earth observation.

Covid-19 Impact on Satellite Data Services Market 

In March 2020, the World Health Organization declared COVID-19 as a pandemic, which resulted in restrictions on travel and disturbance in financial markets, as well as negatively impacted supply chains and production levels. Like most of the industries, satellite data services market also had a negative impact owing to the COVID-19 pandemic. Moreover, due to the implementation of lockdown, various design, development, and manufacturing facilities with inadequate operational launch stations is restricting the market growth during pandemic. According to Daniel Kim, (managing director of Oversea Business for KTSAT), the satellite service operator is experiencing difficulties with the COVID-19 pandemic, as customers and partners have had delays in completing projects and making payments.

Increase in the Demand for Satellite Imagery Data is Anticipated to Drive the Satellite Data Services Market Growth

The increased need for satellite imaging in various industry verticals such as construction, oil & gas, agriculture, mining, and others is projected to help the market develop. The use of satellite imaging in the construction business provides a number of benefits. The building of infrastructure projects can become more detail oriented with the use of high-resolution satellite images, and the satellite data can give a graphical reference for planners and engineers, resulting in more accuracy in their construction. Similarly, satellite imaging could be used in the mining industry throughout the pre-feasibility and feasibility phases of mineral extraction to obtain data-based information about the mineral possibility of the area in question. These factors are anticipated to drive the satellite data services market growth.

To know more about global satellite data services market trends, get in touch with our analysts here.

Government Limitations Related to Satellite Data Services Might Restrict the Market Growth

Government restrictions related to data collecting, location privacy, intellectual property rights, as well as the use and storage of geospatial data and information may hinder market expansion over the forecast timeframe. Furthermore, the high capital expenditure required in satellite-based data services due to niche and sophisticated technologies such as high-resolution remote sensing, powerful satellite analytics software, and others is expected to limit market expansion during the projection period. 

Technological Advancements in Space Sector is Expected to Increase the Opportunities for Satellite Data Services Market

The increased use of artificial intelligence (AI) and machine learning (ML) in the space sector is expected to open up a slew of opportunities for service providers to deliver AI and ML-integrated solutions. AI-powered platforms are providing access to previously inaccessible aspects including social, industrial, and economic processes. Daily satellite imagery is rapidly being processed with machine learning algorithms to identify and detect objects, locate geographic and topographic characteristics, and track minute changes over time. Defense companies such as Lockheed Martin Corporation have developed the Global Automated Target Recognition System, which recognizes satellite pictures (GATR). These developments are likely to increase the satellite data services market opportunities during the forecast period. 

To know more about global satellite data services market opportunities, get in touch with our analysts here.

Source: Research Dive Analysis

The image data sub-segment is predicted to have a dominating market share in the global market and register a revenue of $11,126.4 million during the forecast period. The surge can be due to the emerging demand of imagery data in both public and private sectors. Image data is mostly used for remotely sensed imagery. Remote sensing is majorly used to obtain information for several applications including geological mapping, hydrocarbon exploration, mineral and water exploration, and natural hazards analysis. Moreover, one of the most powerful and crucial tools used by meteorologists is satellite imagery. These visualizations reassure forecasters about the behavior of the atmosphere because they show how events are happening in a simple, brief, and accurate manner.

Source: Research Dive Analysis

The commercial sub-segment is anticipated to show fastest market growth during the forecast period. It is predicted that the market will generate a revenue of $7,587.5 million by 2028, growing from $3,035.7 million in 2020, with a CAGR of 13.2%. Satellite data is used in commercial sector for satellite television, navigation, and commercial satellite imagery. The increase in the demand of commercial imagery data is the main reason for commercial sub-segments fastest growth. Commercial satellites are used majorly in agriculture and farming companies to get rid of unnecessary events like cracks on the walls of dams, ground movements, and others. These factors are expected to increase the sub-segment’s growth during the forecast period.

Source: Research Dive Analysis

The aerospace & defense sub-segment is anticipated to have a dominating market share in the global market and register a revenue of $9,496.5 million during the analysis timeframe. The increase in the revenue of aerospace & defense sub-segment is majorly due to the demand for satellite data in defense sector. Satellite imagery data is used in aerospace & defense to check for illegal occurrences at the borders or inside a nation. Moreover, for the smooth functioning of aerospace & defense activities, satellites provide required information and prevents future harms. 

Source: Research Dive Analysis

The Market for Satellite Data Services in Asia-Pacific to be the Fastest Growing

Asia-Pacific was the fastest growing market during the forecast time period, and is estimated to reach $5,926.4 million by 2028, with a CAGR of 13.5%. The increasing population and economic development in countries like India, Japan, and China, have led to the high demand of satellite data services, especially in the commercial sector. This includes transportation, IT & telecommunication, automobile and others. Moreover, the growing advancements of military sector, especially in India and China is expected to increase the demand for satellite data.

Competitive Scenario in the Global Satellite Data Services Market

Product launches and mergers & acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

The satellite data services market share has been accounted by key players including Airbus S.A.S., East View Geospatial Inc., ImageSat International, L3Harris Technologies Inc., Maxar Technologies, Planet Labs Inc., Satellite Imaging Corporation, SpecTIR LLC, Trimble Inc., and Ursa Space Systems Inc.

Porter’s Five Forces Analysis for the Global Satellite Data Services Market:

• Bargaining Power of Suppliers: Satellite data services market contains moderate concentration of distributors & suppliers and therefore, the distributors & supplier control is predicted to be reasonable, resulting in moderate bargaining power of dealers.
  Thus, the bargaining power of the suppliers is considered to be moderate.
• Bargaining Power of Buyers: Buyers might have average bargaining power, significantly because of adequate players functioning in the satellite data services market.
  Therefore, the bargaining power of the buyer is moderate.
• Threat of New Entrants: Companies entering the satellite data services market are adopting technological innovations such as artificial intelligence and machine learning. Also, these companies are implementing various effective strategies such as offering discounts and value propositions. Yet, the investment cost is high. 
  Thus, the threat of the new entrants is moderate.
• Threat of Substitutes: There are fewer alternate products for satellite data services.
  Thus, the threat of substitutes is moderate.
• Competitive Rivalry in the Market: Due to the fewer number of market players the competitive rivalry among satellite data services industry leaders is modest. 
  Therefore, competitive rivalry in the market is moderate.