Euroconsult
Forecasts
Government
Use
of
Commercial
Earth
Observation
Data
to
Triple
Governments
diversify
mechanisms
to
fulfill
image
intelligence
requirements
June
16,
2010
Euroconsult,
released
a
comprehensive
study
analyzing
the
mechanisms
defense
and
security
agencies
will
use
to
satisfy
their
image
intelligence
(IMINT)
requirements
over
the
coming
decade.
In
its
new
report
“Earth
Observation:
Defense
and
Security,
World
Prospects
to
2019,”
Euroconsult
forecasts
government
procurement
of
commercial
satellite
Earth
observation
(EO)
data
will
reach
$2.6
billion
by
2019,
up
from
only
$735
million
in
2009.
As
governments
try
to
reconcile
their
increasingly
sophisticated
IMINT
needs
with
growing
budget
constraints,
agencies
around
the
world
are
exploring
a
variety
of
solutions.
“Defense
budgets
are
under
pressure
and
developing
autonomous
satellite
capacities
remains
costly,
just
as
commercial
Earth
observation
data
is
becoming
a
viable
solution
for
defense
and
security
applications,”
said
Adam
Keith,
the
Montreal-based
Director
of
Earth
Observation
for
Euroconsult.
“This
combination
of
factors
will
encourage
governments
to
look
towards
the
most
cost-effective
combination
of
solutions
to
meet
their
IMINT
requirements,
including
development
of
dual-use
systems,
increasing
government
cooperation
to
access
third-party
systems,
and
purchasing
commercial
data.”
Driving
this
increasing
demand
is
the
growing
prevalence
of
commercial
high-resolution
optical
and
synthetic
aperture
radar
(SAR)
systems,
improved
image
accuracy
and
reduced
data-delivery
times,
making
commercial
data
suitable
for
defense
intelligence
needs,
which
was
not
previously
the
case.
Despite
these
less
expensive
alternatives,
spending
for
government-owned
EO
satellites
is
also
expected
to
see
a
healthy
increase,
creating
significant
returns
for
the
satellite
manufacturing
industry.
From
2000-2009,
governments
in
nine
nations
launched
57
satellites
specifically
developed
for
defense
applications,
representing
overall
revenues
of
$12.5
billion
for
the
satellite
manufacturing
industry
worldwide.
Over
the
coming
decade,
Euroconsult
expects
manufacturing
revenues
to
grow
to
$18.3
billion
with
a
marked
increase
in
number
of
satellites
and
average
revenue
per
satellite
increasing
slightly.
The
U.S.
market
has
led
the
way
in
uptake
of
commercial
data
for
IMINT.
Commercial
revenues
from
U.S.
defense
and
security
agencies
reached
$430
million
in
2009,
representing
more
than
half
of
all
commercial
data
distributed
globally
to
defense
users.
Adoption
of
commercial
data
solutions
for
defense
applications
has
remained
more
modest
in
other
markets,
largely
due
to
the
only-relatively-recent
availability
of
commercial
data
suitable
for
defense
and
security
purposes.
However,
the
next
generation
of
high-resolution,
high-accuracy
commercial
solutions
and
development
of
data
reseller
networks
around
the
world
will
contribute
to
growing
adoption
in
number
of
other
markets
in
the
coming
decade.
The
Euroconsult
report
also
examines
prevailing
government
attitudes
toward
EO
procurement,
including
customer
requirements
for
IMINT/GEOINT;
the
use
of
satellites
and
unmanned
aerial
vehicles
(UAVs)
to
gather
data;
and
the
risks
and
challenges
governments
face
in
using
commercial
data.
A
separate
section
of
the
report
looks
at
trends
and
analysis
in
EO
satellite
manufacturing,
including
average
satellite
costs
&
market
value
by
region;
government
defense
programs
and
initiatives;
autonomous
satellite
capacity;
financing
mechanisms
(including
dual-use);
and
the
business
of
high-resolution
data
suppliers.
The
report
includes
profiles
of a
range
of
government
customers,
including
those
in
the
United
States,
United
Kingdom,
France,
Germany,
Italy,
Spain,
India,
Israel,
Japan,
South
Korea,
United
Arab
Emirates,
&
Inter-Governmental
Organizations
such
as
NATO
and
EUSC.
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