The document summarizes the 2nd Symposium on Earth Observation Business. It discusses increasing investment in earth observation programs by governments and private industry. Between 2000-2009, over 100 satellites were launched for earth observation and commercial data sales surpassed $1 billion in 2009. However, downstream services have not seen similar growth. Challenges facing the industry include encouraging cooperation, developing policy around data use and export markets, and identifying sustainable operational services.

1. 2nd Symposium on Earth Observation Business
Earth Observation
Market Prospects
Government Space Programs © 2010 Euroconsult
Paris, September 9, 2010

2. 2nd Symposium on Earth Observation Business
Content
• Investment in Earth observation
• Developments along the value-chain
• Challenges facing the Earth observation industry
Government Space Programs © 2010 Euroconsult
Paris, September 9, 2010

3. 2nd Symposium on Earth Observation Business
Investment in Earth Observation
Government Space Programs © 2010 Euroconsult
Paris, September 9, 2010

4. 2nd Symposium on Earth Observation Business
Snapshot of the industry
• 107 satellites launched for civil Earth observation and 28 for GEO/LEO
meteorology applications over 2000-2009
• 26 countries launched Earth observation satellites by 2010
• Commercial data market surpassed $1 billion in 2009
• Majority of satellites launched from government space agencies; government
investment totalled $7.8 billion in 2009 (civil and unclassified defense)
• Government the key market for commercial data and services
Government Space Programs © 2010 Euroconsult
Paris, September 9, 2010

5. 2nd Symposium on Earth Observation Business
Government investment and Commercial EO data sale (2000-2009)
$Billion
Growing investment in
6
environment applications and
emerging initiatives
5
Civil government investment
Civil government
4
Static growth – sector
3 witnessing increasing cross-
over with dual-use and
Unclassified defense investment
commercial
2
Unclassified
defense Witnessing strong growth with
1 defense the first application
Commercial data sale sale
Commercial data
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Government Space Programs © 2010 Euroconsult
Paris, September 9, 2010

6. 2nd Symposium on Earth Observation Business
Earth Observation Satellites to be Launched by Operator Typology*
(World, 2000-2009; Forecast to 2019)
2000-2009 2010-2019 forecast
Dual-use Dual-use
(4) (4)
Commercial
Commercial Leading Space
(47)
(18) Programs
(99)
Emerging
(11)
In- Emerging
Development (47)
(4)
Leading Space
Programs
(70) In-Development (33)
Total satellites: 107 Total satellites: 230
Total country/agency participation : 26 Total country/agency participation : 41
*Not including Meteorology specific missions. Note : China institutional programs might include military missions Government Space Programs © 2010 Euroconsult
Satellite-based Earth Observation, Market Prospects to 2019 © 2010 9, 2010
Paris, September Euroconsult

7. 2nd Symposium on Earth Observation Business
Landscape of Government Earth observation Programs Worldwide
(2009)
Leading
In Development
Emerging
• EO the first application for emerging space programs
• Countries look to gain technology know-how and build on experiences –
opening up an export manufacturing market
Government Space Programs © 2010 Euroconsult
Paris, September 9, 2010

8. 2nd Symposium on Earth Observation Business
Commercial High Resolution Satellites Operational Based on
Anticipated Life-spans (World, 2000-2009 and Forecasts to 2019)
Launched and in Future operation satellites
operation expected lifespan
60 Replacement satellites of
existing systems starting 2016
50
40
Radar
30
Optical
20
10
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2012
2013
2014
2015
2016
2017
2018
2019
2011
*Commercial refers to commercially operated and commercial data availability from government satellites
with data <2.5m optical or <5m radar Government Space Programs © 2010 Euroconsult
Satellite-based Earth Observation, Market Prospects to 2018 © 2009 9, 2010
Paris, September Euroconsult

9. 2nd Symposium on Earth Observation Business
Developments Along the Earth
Observation Value-Chain
Government Space Programs © 2010 Euroconsult
Paris, September 9, 2010

10. 2nd Symposium on Earth Observation Business
Earth Observation Satellites Manufacturing Market Value: Distribution
by Type of Operator (World, 2000-2009; Forecast to 2019)
2000-2009 2010-2019 forecast
Dual-use Dual-use
(6%)
Commercial (4%)
(12%)
Commercial
Emerging (2%) (19%)
In-
Development
(3%)
Emerging
(7%)
Leading Space In-
Development Leading Space
Programs Programs
(78%) (14%)
(53%)
Estimated Total : $16.6 billion Estimated Total : $19.9 billion
Total : 107 satellites Total : 230 satellites
•Current Backlog as of June 2010 and replacement of commercial and institutional operational systems
Government Space Programs © 2010 Euroconsult
Satellite-based Earth Observation, Market Prospects to 2019 © 2010 9, 2010
•Meteorology satellites not included Paris, September Euroconsult

11. 2nd Symposium on Earth Observation Business
Earth observation commercial data sales: optical and radar
(World 2000-2009)
1,200
Launch of next generation optical
and high-resolution SAR systems
1,000
Radar
Limited radar solutions.
Revenue ($million)
800
Consolidation between
Launch of first High- US Operators
resolution commercial
600 optical systems
Optical
400
200
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
• EO commercial data market totaled $1.1 billion in 2009
• Commercial data sale has risen by 27% CAGR over the last 3 years
• Growing number of companies looking to tap-into the commercial data market
Government Space Programs © 2010 Euroconsult
Satellite-based Earth Observation, Market Prospects to 2019 © 2010 9, 2010
Paris, September Euroconsult

12. 2nd Symposium on Earth Observation Business
Earth observation commercial data sales: by customer
(World 2000-2009)
1,200
Ramp up of utlization of data for defense:
1,000 award of significant procurement contracts
from the US government
Private
800 Enterprise
Revenue ($million)
Civil
600 Adaption of EO data for defense Government
and civil government solutions
400 Defense
Government
200
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
• Defense the first market for Earth observation data, particularly US
• Slower uptake of commercial data in civil government and private enterprise
Government Space Programs © 2010 Euroconsult
Paris, September 9, 2010

13. 2nd Symposium on Earth Observation Business
Downstream services have not witnessed similar growth
• Ramp-up of commercial data usage does not translate to increasing revenues
for value-added-services
• Services companies are cost sensitive, lower-cost data solutions preferred
where available – not generating significant revenues for commercial data
sale
• Fragmented value-added services industry with operational services struggling
to emerge
• Services will be stimulated by increasing low-cost/free operational data and
mechanisms for services development such as GMES
• Free data solutions boosting EO market awareness, R&D and data usage whilst
reducing services cost
Government Space Programs © 2010 Euroconsult
Paris, September 9, 2010

14. 2nd Symposium on Earth Observation Business
Challenges Facing the Earth Observation Industry
• Numerous more missions, how to prevent duplicity?
•
• Encouraging cooperation for data share
Policy makers
• Data Policy: Develop usage of EO data without impacting commercial
opportunities and whilst allaying security concerns
• Tapping into the growing export market for EO satellites
Upstream • Emergence of new manufacturing and equipment suppliers
• Develop opportunities for commercial sale to both international
government and private enterprise
• Increasing accuracy and timeliness of delivery
Operators • Growing competition; Vertical integration? gap between operation,
distribution and services closing to expand market share
• Low-cost solutions becoming more capable
• Identifying operational services with returning end-customers
Services • How to maximize the most out of mechanisms such as GMES and
growing sources of low-cost data
Government Space Programs © 2010 Euroconsult
Paris, September 9, 2010

15. 2nd Symposium on Earth Observation Business
Thank you
Graphs & data from Euroconsult research report:
Satellite-based Earth Observation, Market Prospects to 2019
3rd edition; to be released September 2010
Earth Observation: Defense and Security
1st edition; released May 2010
Adam Keith
keith@euroconsult-na.com
Government Space Programs © 2010 Euroconsult
Paris, September 9, 2010