Earth Observation
Data Sales to Defence
Closing on $1Billion in
2012
April 25, 2013
According to
Euroconsult's newly
released research
report,Earth
Observation: Defense and
Security, demand for
data to support imagery
intelligence (IMINT)
continues to grow
globally to support
defense activities and
military operations.
However, as a result of
the relatively high cost
to maintain and launch
EO defense satellites
and the investment
required to fund R&D,
only 11 countries have
developed EO defense
capacity dedicated to
supporting IMINT.
“Since only a few
countries operate
proprietary
high-resolution
satellites, the
commercial sector is
expected to make up a
significant part of
future demand for
IMINT,” said Adam Keith,
Director of Space and
Earth Observation at
Euroconsult and Editor
of the report.
“The number of
unclassified defense and
dual-use satellites
launched by these 11
countries totaled 75
over the past decade.
This figure is expected
to rise to 100
satellites over
2013-2022, with a
further three countries
launching dedicated
capacity. With costs
remaining high, and
budgets strained,
development of dual-use
systems is therefore
expected to increase,
with costs spreading
across multiple
government departments
in order to fulfill the
data requirements of
numerous public sectors,
such as engineering,
infrastructure and
resources monitoring.
Further mechanisms to
re-coup system costs
and/or to support
national industry will
include
commercialization of
government satellites
through dedicated data
distribution entities,
such as those already
observed in France and
Italy through the sale
of data from their
dual-use systems.
COMMERCIAL DATA
MARKET TO SUPPORT
DEFENSE TO TOP $2
BILLION IN 2022
In 2012, 77% ($990
million) of the total
$1.5 billion EO
commercial data market
was attributed to
defense customers,
realizing a CAGR of 20%
over the last five
years. Of this $990
million, close to 50% is
attributable to the U.S.
government, which,
through the National
Geospatial-Intelligence
Agency (the NGA),
represents the first
customer of commercial
EO data. The increased
level of procurement by
the NGA drove growth in
the overall commercial
data market from 2006 to
2010. However, following
the award of Enhanced
View contracts to U.S.
operators and data
providers (DigitalGlobe
and GeoEye) in 2010,
demand stabilized, and
indeed, U.S. procurement
is expected to drop in
2013, with Enhanced View
impacted by austerity
measures within the
broader U.S. government,
prompting the merger of
the two companies.
Growth in the
commercial data sector
is now being driven by
wider global sales to
defense users,
particularly by
countries with high
IMINT requirements and
limited viable
proprietary solutions.
In order to meet these
needs, commercial
operators are finding
success in providing
direct access contracts
to end-users, providing
secure imagery access to
defense clients. With
continued high demand,
revenues from commercial
data sales to defense
are expected to grow to
$2.2 billion by 2022.
