EUSPA EO and GNSS Market Report
This first issue of the EO and GNSS Market Report provides insights into how EO and GNSS contribute to a plethora of applications across a total of 17 market segments, followed by an additional Editor’s Special focus on Innovative Solutions for Health.
Facing global challenges such as the digital revolution, climate change and pandemics threatening the economy at a worldwide scale, society – more than ever – relies on innovative solutions to deal with the big data paradigm, respond to and mitigate natural and man-made disasters, curb the spread of deadly diseases and strengthen a global supply chain that underpins our daily lives. EO and GNSS will play a vital role in contributing to these innovative solutions through dozens of applications that are emerging or already in use by citizens, governments, international organisations, NGOs, industry, academia and researchers around the world.
Between 2021 and 2031, annual shipments of GNSS receivers are forecasted to grow from 1.8billionunitsto2.5billionunits.Theseshipments will be heavily dominated by the Consumer Solutions, Tourism and Health segment following the wave of global smartphone and wearable sales that contribute to roughly 92% of global shipments.
Consequently, the global installed base of GNSS devices in use is expected to reach over 10 billion units by 2031. Here again a dominant role is set aside for the mass market segments of Consumer Solutions, Tourism and Health and Road and Automotive, which will contribute the lion’s share of 98% of all devices in use.
The global GNSS downstream market revenues, covering both device sales and service-related revenues, is expected to grow at a CAGR of 9.2% over the next decade, reaching a total of €492 billion by 2031. Over 82% of these revenues will be generated by value-added services (i.e. €405 billion in 2031). Besides the dominance of the aforementioned mass market segments, the professional markets of (i) Agriculture, (ii) Urban Development and Cultural Heritage, and (iii) Infrastructure will be the main contributors to the global GNSS revenue stream.
In terms of demand, the Asia-Pacific region continues to dominate the GNSS revenues market both for device and services revenues (i.e. 36% and 40% of the global share respectively in 2021). Whilst the region is expected to increase its share of the global services revenues, nearing 46% by 2031, Asia-Pacific will see a decline of its market share of device revenues (expected to drop to 28%). In this area, the region will be challenged by the upcoming markets of South America & Caribbean, Non-EU27 Europe and the Middle East & Africa regions.
With revenues set to double from roughly €2.8 billion to over €5.5 billion over the next decade, the market for Earth Observation applications is boosted by a large pool of value-added services (i.e. 85% of global revenue). These contribute across all segments, though especially in those of Climate Services, Urban Development and Cultural Heritage, Agriculture, Energy and Raw Materials and the Insurance and Finance segment.
When it comes to the sale of EO data (worth €0.8 billion in 2031, 15% of global revenue), the top five of segments is made up of Urban Development and Cultural heritage, Agriculture, Insurance and Finance, Energy and Raw Materials as well as Consumer Solutions, Tourism and Health.
Despite a relatively small market share in 2021 (i.e. 5% or €145 million), the Insurance and Finance segment – boosted by the growing use of parametric insurance products in the context of disaster resilienceframeworksbycommercialentitiesinareaswithhighexposuretoextremeevents–willincrease its uptake of EO data and value-added services over the decade, pushing the Insurance and Finance segment to a forecasted €1 billion EO-enabled revenues by 2031 (constituting an 18% market share).
From a supply perspective, the EO market is jointly led by the United States of America and Europe with market shares of 42% and 41% respectively. Europe plays a leading role in the market of Analysis, Insights and Decision Support (the subset of value-added services closest to end- users) with a 50% market share covering all segments, contributing to its overall market share above. Although challenged by US companies in the mature Agriculture market and the growing Insurance and Finance segment, European companies lead the market across almost all other segments, excluding the Emergency Management and Humanitarian Aid segment (led by Asian companies with 52%) and the niche EO market of Road and Automotive (led by US companies with 77%).
Based on the latest European Association of Remote Sensing Companies (EARSC) Industry Survey, SMEs and start-ups account for more than 93% of European EO companies, showcasing the importance of small companies for the European EO economy.
As presented throughout this report, the flagship EU Space Programme – driven in tandem by Galileo and EGNOS on one side and Copernicus on the other – has become a major enabler in the downstream space application market.
Across each and every market segment displayed in this report, the added value and key differentiators of European GNSS and EO are showcased, both separately but also, more importantly, in synergy with each other.