Despite market downturns in specific verticals and the Covid-19 pandemic, Big Data analytics via satellite will generate close to $20.7bn in cumulative revenues by 2029, according to a report by NSR.
The revenue generated from various applications developed using earth observation satellite imagery is expected to grow to nearly $2.2bn by 2029.
“Downstream data analytics in the satellite industry is a highly fragmented market, with a value chain that continues to morph, as players try to find their niche and provide solutions to different stakeholders,” states Shivaprakash Muruganandham, NSR Senior Analyst and report author.
M2M and IoT communications via satellite will continue to drive the more mature markets of transportation (both land and maritime) and government and military applications.
“This demand exists across verticals, whether in fleet management solutions, financial indicators, competitive intelligence or business operation tools. The market is far from done with squeezing maximum value out of bits from space,” he adds.
While the Covid-19 pandemic impacted many industries negatively, the demand for remote sensing and geospatial analytics was minimally impacted, even enjoying a slight boost in the early months of 2020 as pandemic-related concerns and travel restrictions drove this demand across verticals. Growth in the enterprise services market vertical is expected to outpace all other verticals, as newer datasets with improved resolution and cadence come online.
Market consolidation will continue, as incumbents and startups alike roll out newer applications. NSR has already stated that the line between EO and M2M/IoT data applications is expected to blur. This trend is further boosted by the growing virtualisation of satellite networks, as software-defined systems become more prevalent, further boosting the interoperability and providing smoother data pipelines.
Overall, satellite big data analytics will reach $3.5bn in annual revenue opportunity in 2029, with 65% from EO applications and the rest, driven by M2M/IoT Satcom applications. While North America’s presence as an established market continues through the decade, other regions are expected to grow in their adoption of satellite big data services too.