Widening Application Base Set to Boost the Satellite-based Earth Observation Market in APAC Through 2020, Says Technavio

“Companies across the world are foraying into the market due to high requirements for remote sensing and meteorology across industries such as mining, oil and gas, agriculture, defense and intelligence, and forestry. Almost 45 countries have already launched EO satellites for a variety of purposes. Among them, China holds a 25% share in the space fleet,” added Rakesh.

The satellite-based EO market in China was valued at USD 326.3 million in 2015. The satellite-based EO market in China will rapidly grow during the forecast period, driven by the increase in investments in space programs and rise in the demand for EO data and VAS in APAC. China is the major revenue contributor to this market. In 2013, China invested almost USD 11 billion in the space program, which is the second largest in the world. The country is working on an indigenous high-definition observation project called Gaofen. The project was initiated in 2010, with a plan to send 14 EO satellites before 2020. China launched Gaofen-1 in 2013, Gaofen-2 in 2014, and Gaofen 4, Gaofen 8, and Gaofen 9 in 2015.

The satellite-based EO market in Japan was valued at USD 76.3 million in 2015. The satellite observation market in Japan is still in its nascent stage but will grow steadily during the forecast period. Images gathered from EO satellites are used in applications such as oil and gas explorations, agriculture, defense, and disaster management in the country. In addition, some start-up companies are also planning to launch EO on microsatellites in space. For instance, Axelspace plans to put 50 EO microsatellites in the orbit from 2017-2020. The images gathered from these satellites will be widely used in applications such as agriculture and surveillance of oil fields.

The satellite-based EO market in India was valued at USD 76.2 million in 2015. The satellite-based EO market in India will grow rapidly during the forecast period. Images gathered from EO satellites are widely used in applications such as disaster management, agriculture, mining, oil and gas, and living resources in the country. The EO satellite, Nisar, which is the result of a collaboration between ISRO (India) and NASA (US) is set to be placed in the orbit by 2021. Nisar will be used for remote sensing purposes.

The satellite-based EO market in Rest of APAC, which comprises of Australia, South Korea, Malaysia, and Indonesia was valued at USD 164.7 million in 2015. The market is expected to grow steadily during the forecast period. Antrix, ISRO’s commercial arm, signed agreements with clients in seven countries to launch 25 satellites during 2016-2017. These include 12 with the US, four with Germany, three with Algeria, three with Canada, and one each with Indonesia, Japan, and Malaysia.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.