According to the new research report the “Satellite Data Services Market by Vertical (Energy & Power, Engineering & Infrastructure, Environmental & Weather, Agriculture, Transportation & Logistics, Insurance), Service (Image Data, Data Analytics), End-Use, Region – Global Forecast to 2026”, published by MarketsandMarkets™, the Satellite Data Services Market is valued at USD 5.9 billion in 2021 and is projected to reach USD 16.7 billion by 2026, at a CAGR of 23.0% from 2021 to 2026. The US government invests in every part of the smallsat ecosystem and is likely to continue investing, both at the upstream and downstream, which would positively impact the satellite data services market. The more interesting development is in the increasing investments in smallsats by other governments around the world.
In the last few years, satellite data services market has evolved considerably. Especially, the supply side has seen new technologies and new systems being introduced into operation. In addition to the impact of cloud, the satellite data services industry finds itself at the junction of two revolutions, the one being the Big Data/Artificial Intelligence (AI) and the other being the commercialisation of space (through its main drivers, small and micro satellites). This market is expected to have exponential growth owing to the surge in the demand for satellite imagery data throughout various industries. In recent years, the satellite market has been experiencing advances in technology and the response of the marketplace have led to smaller sensors, satellites, and launch vehicles competent of performing valuable space missions at relatively low price. This new approach has led to an increase in the number of satellites being launched. CubeSats and Small Satellites are cheaper to manufacture in comparison to normal satellites and can be launched as a secondary payload on a rocket or larger launch vehicles that can deploy many satellites at a time into different orbits for specific verticals, such as energy & power, defense & security, agriculture, and forestry.
The global coronavirus pandemic and the current surge in infection rate due to the Omicron variant of COVID-19, has moderately impacted the satellite data services market on the supply side. This moderate impact is due to delays in delivery due to activity slowdowns for some satellite manufacturers. This slowdown has negatively impacted space launches and may lead to the postponement of several missions. It has also impacted business continuity plans at every level of the supply chain. The uncertainty grows, however, in the medium term due to the expected higher pressure on governmental budgets, which could affect institutional orders and have repercussions on commercial customers’ financial fragility. In the long term, the manufacturing industry might hope for a return to nominal levels of orders thanks to persistent needs for connectivity, observation, and tracking services. The situation is more critical for small players. Startups and small-sized suppliers foresee liquidity challenges in the short term, and many may struggle to survive without support from their investors and prime integrators.
The satellite data services market for agriculture vertical is projected to grow with higher CAGR
Based on vertical, Agriculture segment to exhibit highest CAGR in satellite data service market, from 2021-2026 forecast period. It is because satellite imagery helps in assessing detailed estimation of crop conditions and yields, the health status of the crops, and quality of vegetation.
The satellite data services market for Data Analytics service segment is projected to grow with higher CAGR
Based on service segment, Data Analytics sub-segment would grow highest with a CAGR during the forecast period. Rising demand for data analytics services namely image data processing, feature extraction, digital models, and classification, required for developing GIS maps and analyzing data presented in a satellite image would boost the market.
The satellite data services market for Government & Military segment is projected to have highest market share based on end use
Based on end use segment, Government & Military sub-segment would grow highest market share during the forecast period. Rising usage of high-quality satellite imagery in defense sector of various nations to boost the market.
North America is expected to hold the highest market share in 2021.
North America is expected to dominate the market studied, during the forecast period, due to the maximum number of ongoing research studies and investments in this market, the existence of up-to dated infrastructure to undertake space programs, and the rapidest and maximum adoption of commercial satellite imaging throughout various industries in the region.
Key players of satellite data services market comprise Maxar Technologies (US), L3Harris Geospatial (US), Airbus (Netherlands), Planet Labs, Inc. (US) and Spire (US), ICEYE (Finland), Satellite Imaging Corporation (US0 and few others. These key players offer drones applicable for various sector and have well-equipped and strong distribution networks across the North American, European, Asia Pacific, Middle East & Africa and Latin America. PR Newswire