The use of satellite platforms in Earth observation has significantly altered the economics of the industry, making it more accessible and affordable for various sectors and countries. A notable example of this impact is a rice farmer in Pakistan who received a text message warning of an impending flood, allowing him to take necessary precautions and save his crop. In contrast, his neighbor who did not receive the alert lost most of his crop. This scenario highlights the benefits of satellite data in changing outcomes.
The cost of building, launching, and operating a satellite has decreased substantially, making it possible for companies like Dragonfly Aerospace to offer configurable satellite platforms at a lower cost. This shift has led to an increase in the number of Earth observation companies, with 241 companies in Europe alone generating EUR 82 million in revenue in 2019. The global Earth observation revenue was approximately €3.5 billion in 2024 and is forecasted to reach €7.9 billion by 2034.
The World Bank has integrated Earth observation data into projects across around seventy countries, with the total development finance influenced by satellite data approaching six billion dollars. The use of satellite data has enabled the Bank to manage projects in areas where ground data is scarce or non-existent, such as in South Sudan. Satellite data has been used for pasture monitoring in Paraguay, identifying vulnerable power lines in Bangladesh, and flood hazard mapping in South Sudan.
The hardware behind satellite imagery consists of a bus that manages power, temperature, pointing accuracy, and data transmission, as well as a payload that handles cameras and sensors. The platform determines the type of instruments that can be carried, and a standardized bus enables faster production and reduces costs. Companies building these frames are selling not just metal but the economics that make the industry possible.
The increasing accessibility of satellite data has raised concerns about privacy, national security, and data sovereignty. Sharper images mean sharper privacy concerns, and there is a risk of fake satellite imagery being used in conflict zones. The OECD has warned about the need for guardrails to address these issues, as the technology is moving faster than the rules.
Satellite platforms are no longer optional but have become infrastructure for various industries, including agriculture, insurance, and government. The economics of Earth observation have shifted from being about cool space pictures to who gets the data first and whether they know what to do with it. The use of satellite data has created new opportunities for businesses and countries, but it also requires them to adapt to the changing landscape.
The benefits of satellite data are evident in various sectors, including agriculture, energy, and infrastructure. An insurance agent in rural Poland can now use radar data to verify hail damage, while a utility company in Italy can use millimeter-precision radar to spot ground subsidence before a pipe cracks. The study on digital spillovers indicates that for every dollar spent on developing capabilities such as Earth observation, twenty dollars of general economic benefits are created.
Key points
- Satellite platforms have made Earth observation more accessible and affordable for various industries and countries.
- The global Earth observation revenue is forecasted to reach €7.9 billion by 2034.
- The use of satellite data has created new opportunities for businesses and countries, but it also requires them to adapt to the changing landscape.
