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Business in Earth Observation EoVOX080508

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    BusinessinEarthobservation

    an overview omarket developmentand emerging applications

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    3

    Table o contents 3

    Earth observation: Making the dierence in the inormation economy 5

    Adding value to Earth Observation inormation 9

    Global Market Forecast 11

    Emerging services applications 17

    Factors driving Earth Observation Industry growth 31

    Embracing the change 37

    Reerences 39

    Business in Earth observation

    Table o contents

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    5

    1. Making the dierence in the inormation economy

    Satellite observations have provided us with eective ways o monitoring our

    planet, helping us improve the exploitation and management o Earths resources.

    Google Earth and other similar tools have demonstrated that Earth observation

    EO is not a specialist area but something that can add value to many aspects

    o our lives, both at work and at home. This brochure aims to illustrate that and to

    reveal new opportunities or business, industry and government to add value to

    their operations.

    The Earth observation industry is already addressing - at a global level - important

    environmental, social, and economic challenges. It is ocusing its research and

    development programs on innovative capabilities and services which will improve

    the quality o lie o citizens as well as the eciency o economic actors.

    The Earth observation sector is being recognized as a leader in the development,

    deployment and integration o science and technology into policy and decision-

    making by industry and other stakeholders.

    Commercial high resolution and multi-spectral satellite systems are delivering an

    unprecedented quantity o Earth observation data in very short timescales ater

    acquisition. The commercial remote sensing business has entered a new era.

    The satellites, the images, the delivery systems and the value-added inormation

    providers and products are all now components o a well-established industry.

    EO oers added-value cost-eective solutions to business problems associated

    with the interplay between asset management, technical processes, systems and

    data management, rapid dissemination o data, results or services, and distribution

    channels.

    Business in Earth observation

    Earth observation: Making the dierence inthe inormation economy

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    6

    The EO value adding (VA) industry is dedicated to the development and use o

    Earth observation data processing and exploitation tools to provide optimized

    inormation or decision makers. This industrial sector is mainly composed o small

    and medium-sized enterprises (SMEs). It is a mature sector. There are players

    active across the entire value chain, providing homogeneous, continuous and

    global coverage o even the most remote and inaccessible areas o the world

    where inormation has previously been non-existent. Access to this valuable

    inormation is rapid, simple and cost-eective. EO has become part o the more

    general concept o Geo-inormation, where users receive inormation tailored to

    their needs and pertaining to their precise place in space.

    Business in Earth observation

    FIGURE 0. Relation EO VA supply and costumer demand.

    push

    Value added info:Earth observation data,

    geo-information, high integration,software, know how, contacts

    pull

    Customer

    demandinformationexploitation

    informationcreation

    EO VA

    Supply

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    FIGURE 1. Global European annual satellite EO products andservices turnover, in millions o euros. (Source: mission study - ISU- MSS)

    5000

    6000

    3000

    4000

    1000

    0

    2000

    2006 2008 2010 2012 2014 2016 2018 2020

    Services

    Products

    This brochure demonstrates the maturity o the EO value-adding sector and provides

    examples that have emerged recently in the market. It allows an assessment o the

    economic importance o these activities, either at product level with the sale o

    data and sotware or at the level o system integrators or the development o

    novel applications and value-added services. This market is on the brink o a wide

    expansion, representing a huge economic gain in terms o industrial products and

    service provision as shown in Figure 1. The main challenge or the EO industry now

    is to alert potential customers to the benets o this essential new resource.

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    2. Adding value to EO inormation a diverse and astgrowing sector

    Ever since the launch o the rst satellite systems or civil imagery (LANDSAT) in

    the early seventies, companies worldwide have been developing products and

    services to stimulate and serve a civilian market or land and coastal applications,

    among others. From a baseline o proessional equipment or image processing

    and geographical inormation systems, continued innovation in technology has led

    to huge improvements in the price and perormance o tools. In tandem with this,

    value-adding companies have continued to develop new applications and spawnnew businesses to serve growing markets. Today, several hundred companies are

    already involved in satellite Earth observation service provision, encompassing

    a diversity o markets ar outstripping anything that could have been envisaged

    even ten years ago.

    As the market grows in size, it also develops in structure. What started as an

    industry that supplied stand-alone image processing tools, the situation has

    developed to encompass all geo-inormation tools combining image acquisition,

    data processing, geographical inormation systems, as well as their integration

    with both navigation and communication technologies as shown in Figure 2.

    The product business is complemented by a rapidly developing service industry that

    integrates, among others, digital mapping, bundled with mobile communications

    to deliver packaged services to end-users.

    Business in Earth observation

    Adding value toEarth Observation inormation

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    10 Business in Earth observation

    FALLOWS

    CULTIVATED AREAS

    CROPS

    MONITORING

    RENEWABLE

    RESOURCES

    TELECOM

    SETTING UP

    DATA PROCESSING

    SOFTWARE

    SPECIES CENSUS

    NATURE RESERVES

    RADAR

    INSTRUMENTS

    INDUSTRIAL

    SETTING UP

    ENVIRONMENT CONTROL

    AND MONITORING

    URBAN

    DEVELOPMENT

    FINAL

    MARKETS

    FINAL

    MARKETSAPPLICATIONS APPLICATIONSSYSTEMS/PRODUCTS

    FUNCTIONAL

    PROPERTIES

    CONSTITUENT

    TECHNOLOGIES

    SYSTEMS/PRODUCTS

    URBANIZATION

    FOREST MANAGEMENT

    DEFENCE

    AGRICULTURE

    MAPPING

    ENERGY

    TRANSPORTS

    NATURAL DISASTERSFORECAST ANDMANEGEMENT

    COASTAL EROSIONPOLLUTION, OUTFLOWS

    MONITORING

    OPTICALINSTRUMENTS

    IR INSTRUMENT

    SPECTRAL HIGHTRESOLUTION

    SPATIAL HIGHTRESOLUTION (

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    3. Global Market Forecast

    The main driver o the evolution o the European EO VA industry activities in the coming

    years is the GMES (Global Monitoring or Environment and Security) initiative. This

    European initiative has already gathered substantial momentum through the actions

    o the European Union and European Space Agency and through the wide ranging

    participation o European industry since European remote sensing companies, who

    have all the competence and experience needed or a successul GMES programme.

    This encompasses in-situ, airborne and space-borne sensor deployment, ground

    inrastructures and data processing, value added data production and interpretation,and extending to aid or environment and security decision-making. GMES is o

    strategic importance, however it is a complex undertaking which needs a sustained

    backing to become a success story and a denitive European asset.

    GMES is a cornerstone o the European Union space strategy. GMES will supply

    accurate inormation in support o several European policies such as sustainable

    development and climate change, civil protection, humanitarian aid, saety,

    research and space strategy. It will provide a platorm or the growth o innovative

    knowledge based organizations in the environmental and geo-inormation sector.

    It will also improve the links between government institutions providing public

    inormation services, EO service companies providing niche products and other

    industrial operators providing a wider range o environmental services. This

    clustering is expected to stimulate a range o innovative products and services.

    The availability o environmental inormation through GMES combined with the

    dynamism o the European geo-inormation service industry create very avourable

    conditions or the industry (i) to exploit the expected increase in accessibility and

    reduction in cost o environmental data and inormation and (ii) to innovate new

    products and services rom the GMES initiative. This process can be a very positive

    contribution to European competitiveness.

    Business in Earth observation

    Global Market Forecast

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    The protected benets o GMES to the geo-inormation value adding sector

    grouped by public policy domain are represented in Figure 3.

    FIGURE 3. Impacts on the geo-inormation value adding sector (source: PwC Analysis)Note: 25 year appraisal period, discounted at 4% real to 1/1/2006

    Global environment

    17000

    2800

    3600

    5200

    2700

    900

    Natural resources

    2200

    Security

    Risk and Civil Protection

    Sustainable growth

    European environmental protection

    Development and aid Security

    Gmes Benefts by

    Public Policy Domain.

    Total 35 Billion Euros(25 years appraisal period)

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    Over the next 10 years, as use o satellite-based imagery spreads, international

    cooperation on civil programs will intensiy. The potential users o geospatial

    data and products are numerous, including governments seeking services or

    development and deence, engineers or solutions and innovations, armers

    or crop yields and monitoring, telecom operators or mobile networks, etc.

    Competition to sell products is erce, and Forecast International (website: www.

    orecastinternational.com/) expects this competition to spur another round o

    limited consolidation within the industry over this period.

    A urther signicant development expected over the next 10 years correspondsto the growth in turnover associated with services. At present, the product market

    dominates turnover. However, as the number o users increase in mass-market

    image related products segments, the potential or service turnover also increases.

    Economies o scale or suppliers, maturing service oerings and network eects

    will all combine to increase the value o the service market. Expectations or the

    geo-inormation service markets resulting rom the synergy between the use o

    Earth observation, Navigation and Telecommunications techniques are shown in

    Figures 4 and 5.

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    Agriculture / Vegetation / Fishing

    Traffic Management

    Fleet Management

    Civil Engineering

    Disaster Management

    Regulations Monitoring

    Urban

    Insurance

    Mining

    Cartography/Mapping

    Tracking

    Citizen

    Precision Farming

    FIGURE 4. Worldwide turnover by domain in 2015 (primary markets, total 50 billion euros. Source: Source: mission study - ISU- MSS)

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    Meteo

    Wildlife

    Enviromental Monitoring

    Search and Rescue

    Crime Tracking

    Earth Monitoring

    Ground Motion

    FIGURE 5. Worldwide turnover by domain in 2015 (Secondary markets, Total 1 Billion euros. Source: Source: mission study - ISU- MSS)

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    The Industry iseverevolving;

    leading-edge tech-nologies, address-ing problems and ft-ting customer needs.

    Photo: ESA

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    4. Emerging services applications

    From orbiting space platorms to precision sensors, Earth observation capabilities

    measure short- and long-term variations on the planet, enhancing knowledge

    o global trends, or example in weather and climate, the environment, human

    activity, etc. The EO industry is unique in its ability to gather and process

    inormation on a global scale and is increasingly seen by mainstream industries as

    an enabler o internationally competitive perormance through its development

    and delivery o improved geo-inormation products and services or land, ocean

    and atmosphere.

    The suite o applications is tailored to industry users seeking multi-spectral imagery

    to monitor and anticipate changes in their surroundings. The benets which are

    envisaged range rom long term social benets through to more immediately

    Business in Earth observation

    Emerging services applications

    FIGURE 6. Products markets. (Source: ESA-EOMD Compendium)

    0 30 60 90 120 150

    Public / governmental bodies

    ProductsMultiple marketsSingle market

    International / intergobernmental organistions

    Infrastructure / transport / communications

    Agro / fish / forestry

    Energy / natural resources

    Other

    Commercial services(insurance, news, travel, etc)

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    quantiable economic benets. This section explores the benets that are

    envisaged in a range o primary application sectors, including resources, energy,

    inrastructures , transport & communications, services, public and international

    institutionsand security. A summary o the current structure o sales and revenues

    or dierent types o products and services across these application sectors is

    shown in Figure 6 and Figure 7.

    Software 1%

    Standard Offerings 1%

    Data 0%

    Integrated solution 23%

    Customised Solutions 74%

    Training 1%

    FIGURE 7. Development revenues by service. (Source: ESA-EOMD Compendium)

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    4.1 Agriculture, Fisheries and Forestry

    As the satellite imagery archive continues to grow, it will be increasingly possible

    to track changes over time or applications such as agriculture. Farmers worldwide

    make substantial annual investments in arm chemicals, yet continue to lose crops

    due to pest inestations, plant diseases, and poor arming practices. Using high

    spatial resolution imagery, inadequate irrigation and soil erosion can be identied

    quickly, while herbicides, pesticides, ertilizer, and other agricultural treatmentscan be more accurately assessed, closely monitored and optimised.

    When combined with other inormation (arm census, seed sales, market

    inormation, etc.) Earth observation outputs make a signicant contribution to

    the eciency o modern agricultural practice, while the consistency and broad

    coverage o the data are important to the large companies in todays market.

    Space observations o oceans have evolved over last our decades and have been

    increasingly used or understanding various oceanic conditions. For those studying

    Business in Earth observation

    Earth observation helpsto the eciency o

    modern agriculture.

    Tomato Plantation inBrazil.

    Photo by JooPaglione.

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    the oceans environmental processes or assessing its marine resource potential,

    Earth observation can help to identiy the potential fshing zones and to assess sh

    stocks. The EO industry is already delivering products that help optimise shing

    feets; it also provides data or sh stock control monitoring and detection o

    biophysical parameters such as primary production and sea surace temperature.

    Precisely located Earth observation data has assumed great importance in orest

    mapping and management, re damage monitoring and the increasingly important

    problem o illegal logging in developing countries. Currently the demand or

    orestry inormation is driven by international and European environmental

    conventions. National governments are introducing geo-inormation to provide

    the inormation necessary or orest policy development. However, EO data can be

    more easily and cost-eectively managed by private operators. Earth observation

    is being used in many areas o orestry, including orest inventory, health, wild

    land, chemistry, carbon accounting and land cover mapping. For example, orest

    managers know how much wood will be available at any one time on a sustainable

    basis. They will be able to compare up-to-date maps o orests and conserved

    Business in Earth observation

    Earth observationcould help to identiy

    potential shing zones.

    Fishing Boat leavingCromarty harbour,Ross-shire, Scotland.Photo by CalumDavidson.

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    areas with inormation rom wood suppliers to prevent protected wood rom being

    taken.

    4.2 Energy and Natural Resources

    One o the most established markets in Earth observation is within the areas o

    natural resources exploration including oil, gas and minerals and the Energy

    sector in general. Earth observation products aid in the development o initial oor on shore surveys as well as in the areas o oil spill mitigation and remediation.

    Energy companies are one o the pillars o the market. Energy is an input

    universally required by the economic and social inrastructure o all countries.

    The Earth observation industry can optimize the available spatial data or specic

    locations using ground-based monitoring techniques providing the existing

    surace networks with data where none was previously available. Such optimization

    occurs through the development o specic decision support system tools that

    Business in Earth observation

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    22 Business in Earth observation

    require detailed meteorological and specic parameters inormation depending

    on the energy activity.

    Earth observation imagery is used extensively by exploration companies in support

    o their search or new oil and gas reserves both on land and at sea as well as

    playing an important role in exploration, extraction and sae transportation o the

    worlds oil and gas reserves.

    Real opportunities exist or inormation rom Earth observations to contribute

    to the optimisation orenewable energy systems or power production, and tocontribute to the provision o inormation or optimal integration o traditional and

    renewable energy supply systems into electric power grids.

    Energy sources such as solar, wind, and wave power fat acilities, oer

    environmentally-riendly alternatives to ossil uels but are particularly sensitive

    to environmental conditions. These energy sources are intermittent, and their

    availability depends largely on local climate and weather. Local climate data on

    cloud cover, solar irradiance, and on wind/wave speed and direction combined

    with other environmental parameters such as land elevation and land cover

    models are vital elements in developing a strategy or the location and operation

    o solar, wind, and wave power acilities.

    Earth observation is commercialising science solutions to provide a competitive

    advantage in the market place omining during the design and construction o

    underground structures and during the operating period o these structures.

    Water authorities require access to reliable inormation at the regional scale. This

    can be derived rom traditional and laborious point measurements, but Earth

    observation can additionally provide data on the temporal evolution o the extent

    o open water suraces and indices o irrigation or water scarcity such as the spatial

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    23 Business in Earth observation

    and temporal variations o the vegetation phenological cycle. Earth observation

    data provides new options to diagnose land and water resources conditions, and

    thereore an opportunity exists or providing new services.

    4.3 Inrastructure, Transport and Communications

    There is sustained interest in Earth observation products and services rom a broad

    range o sectors o the economy, includingconstruction and other inrastructures ,

    commercial and even residential real estate companies.

    The application o Earth observation technology in exploration can save time,

    money and increase eciency. The processed imagery is also able to provide

    accurate and up-to-date inormation or many purposes. Dierent users o the

    inormation include: oil and gas exploration/production companies, geophysical/

    geo-chemical services companies, mineral exploration/operators and independent

    consultants.

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    Industry can quickly acquire images that portray very current conditions on the

    ground to assist in site appraisal, detection, evaluation, location analysis and

    development.

    Other geospatial data provide a range o societal benets, such as improving

    public saety and transportation access providing companies with options or

    reducing uel usage and improving operational eciencies.

    Data on drainage, watersheds, buildings, and land uses has vital importance to

    inrastructures and EO data can help to understand these better. Road networks

    can be more eciently and eectively managed by drawing up on quantitativeand qualitative real time inormation. EO data is used to increase the eciency

    o project planning, shorten project timelines or delivery and signicantly reduce

    costs or developing and managing the highway corridors. Large investments

    are being made to upgrade road/highway inrastructures and the transportation

    sector has begun to understand the potential benets o using EO value-added

    products. The most requested products are thereore cartography and specic

    thematic and morphological maps, such as digital elevation models (DEMs).

    Business in Earth observation

    Air and seatransportation are thecirculatory system othe global economy,enabling the fow ogoods, people andservices across borders.Growth rates or bothmodes o transportcontinue to exceed thato the world economy.On a national level,ecient transportinrastructure is a keyarea o comparativeadvantage.

    (Source: ESA)

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    Ship routing or sae transportation and ecient use o uel is critical or worldwide

    commerce. Earth observation supplies inormation and imagery which improves

    the maritime weather orecast. Shipping is thereore supported by an accuracy

    day-and-night coverage o the entire globe.

    The telecommunications and utilities industries have seen the use o large-scale

    o EO data, such us land-use categories o urban and vegetated areas, as clutter

    classications. These interpretations have been used to assist in the network

    development and expansion planning process and to look or areas in modelling

    cellular telephone signal propagation, which in turn helps engineers to locate celltowers.

    4.4 Services

    EO services help to generate revenues or Insurance companies by providing

    real-time data or understanding hazards and by adding value to imagery datasets

    or visualisation during a risk assessment, evaluating variables that would lead to

    additional operational costs. This approach provides the insurance customers with

    unparalleled opportunities to understand and assess uture risks. The importance

    o post-crisis analysis could be improved i the insurance sector would start to

    use satellite data operationally, or the assessment o damage caused by natural

    disasters.

    The potential o the news and mediamarket is very high, because prospective users

    are not limited to the technical community. All consumers could be considered a

    client. Images could be used or publishers, media and newspapers or reportage

    and articles.

    Business in Earth observation

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    The Earth observation industry oers new techniques or creating promotional

    material or tourism using web sites based on EO data seen rom a pictorial point

    o view and deploying virtual reality medium scale applications.

    New products also exist in the leisure sector providing inormation on textures

    and landscapes or video games, such as fight simulators.

    4.5 Public and Governmental Bodies

    The Earth observation provides an ever-increasing range o derived inormation

    products or public bodies. The wide range o established activities includes

    contributions to national land cover assessment, environmental impact and

    warning services to government and industry. Governments together with EO

    value adding companies are already playing a role in developing and tailoring new

    technologies, adapting existing tools to create new products, and incorporating

    new data sources to increase accuracy. This is already the case in demographic

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    monitoring and prediction or local and regional governments; and in water,

    electric power and telecommunications inrastructure assessment.

    EO VA companies achieve efciencies in routine operations, get inormation

    to clients more quickly and eectively, and respond to emerging community

    needs.

    Inormation is the key element or an educated society, economic growth and

    decision-making. Earth observation rom space sharpens our sensitivity to the

    natural environment and thus stimulates our willingness to learn o its relevanceto everyday lie conditions. It also make us aware o the need to use science and

    technology methods to obtain inormation or environmental monitoring. Private

    consultancies are developing courses on awareness o the potential o Earth

    observation and geo-inormation in both the public and private sectors and or

    the general public. The accessibility and knowledge o Earth observation improves

    the decision support and provides key inormation needed to promote economic

    vitality and environmental stewardship. Earth observation contributes to solutions

    that result in socio-economic benets to society.

    4.6 International and Governmental Bodies

    Understanding the Earth system its weather, climate, oceans, land, geography,

    natural resources, ecosystems and natural and human-induced hazards is crucial

    to enhancing human health, saety and welare, protecting the global environment,

    and achieving sustainable development. Data collected and inormation created

    rom Earth observations are critical to this understanding.

    Governments are exploring the potential o Earth observation to support in the

    near uture the implementation o international environmental treaties. To respond

    to national and international issues related to climate change and sustainable

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    development international bodies require measurements and monitoring

    systems that can provide timely inormation. Governments have taken several

    steps towards establishing a comprehensive coordinated and sustained Earth

    observation system which can play an essential role in nding solutions related to

    improving the multiunctional use o space, or water management, ood security

    & the environment and or disaster management.

    Public regulations can create market sectors: Aim to create Europe-wide markets

    in order to avoid ragmentation and to provide critical mass.

    Exciting proessional opportunities in the atmospheric sciences and meteorology

    are growing in a number o weather- and environment- sensitive technology areas.

    Some examples o areas o synergy opportunity include:

    management (rom seed selection through harvest) o agricultural crops and tur(gol course-type) grasses;

    orest ecosystems and watershed management;

    wind energy, including problem areas such as site selection and turbine designand operation; environmental impact assessment or industrial permitting and

    monitoring purposes;

    emergency response ollowing accidental or other releases o hazardous and toxicmaterials on local, regional and national scales;

    special problems in marine meteorology and air-water exchange;

    weather-dependent disease vectors or human and animal health;

    and environmental impacts o high animal density agri-industries.

    Business in Earth observation

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    4.7 Security and deence

    The security segment is a well-established user o EO data as a key inormation

    source, and it is handled with more and more sophisticated GIS instruments. The

    main applications are the generation o maps, target monitoring and detection,

    and digital elevation model generation. Data usion techniques that combine data

    rom dierent sources are also used. Earth observation data makes an excellent

    basis or medium to large scale cartography. Consequently, this segment makes

    extensive use o satellite data, especially in those situations where the requirements

    or accuracy can be met, and alternative data sources are too expensive or evenunavailable. This is a mature market where the use o satellite data is consolidated

    practice. The market potential is high, because there are large areas o the earth

    that remain unmapped at both medium and large scales, and other parts that,

    even i already mapped, require regular updating. High resolution data now oers

    solutions or topographic scales and cadastral activities.

    EO inormation is perceived to be o signifcant beneft to many sectors o society

    Some private and public industry in rescue and recovery eorts may use satellite

    imagery that helps to quantiy the geographic damage extents in conjunction

    with geo-inormation to assess wildre and food risks with imagery captured ater

    events. Prediction and detection o these risk events has to be accomplished in a

    cost-eective way that improves security.

    Mapping, civil protection and global security applications o geospatial data

    inormation are currently present in the market. The needs o environmental

    assessment and inrastructure applications are substantial and are likely to increase

    as our scientic understanding advances, and thereby provide uture economic

    benets.

    Business in Earth observation

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    Photo: ESA

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    31 Business in Earth observation

    Factors driving EO industry growth

    5. Factor driving EO industry growth

    A number o actors were identied which will aect the EO industry in the near

    uture. EO providers see primary markets as probably their best hope o increasing

    service revenues over the next ew years. The EO VA industry depends on the

    growth and development o the market or its own uture. VA companies providing

    new products to new customers are keeping a close eye on the market to identiy

    which application promises larger revenues.

    5.1 Market drivers

    New advances such as the Google-Earth-like developments and wide availability

    o new satellite navigation techniques (GPS/GIS) are revolutionising the market.

    Such advances will result in a steep change in the market or EO products, with an

    acceleration o the market growth in the next 5 years.

    Social, demographic and economic actors together with technological and

    political actors are also likely to have an impact on the EO revenues over the

    next ew years. In addition, the development o new services such as or oil and

    insurance companies will extend the demand or these services to more users, and

    increase usage by existing users.

    On the overall EO supply chain, regulations, competition, business models and

    technology limitations all come into play to impact the market share and growth

    prospects in specic countries or regions.

    Technological Trends:

    New satellite and payload technologies, new sensors, ormation fying and

    constellations o mini/micro satellites,

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    GIS and sotware advances improve price versus perormance and avour its use

    in portable devices. Advances in geographical inormation systems and digital

    mapping provide the necessary data to support new Location Based Services.

    In the deployment o new services, continuity o data is a critical element. It

    impacts both the cost and the reliability o the service oering, and powering

    solutions are continuously innovating and growing in complexity.

    Convergence and integration with other Space application domains

    (Telecommunications, Galileo and GMES inrastructures). Complementarities othe satellite capabilities with terrestrial capabilities should also be addressed as

    an integral part o the overall system concept. The target should be a service

    demonstration platorm, with the objective o validating the system/technological

    concepts and o demonstrating to potential users the benets o an integrated

    Communication/observation inrastructure

    Political and regulatory environment:

    New directives in shery policies, in environment monitoring, in agriculture, etc.

    New measures to enhance public and consumer protection

    Measures or regional development or or humanitarian aid in poor countries,

    etc.

    Another driving actor is interoperability. Standards development in particular play

    a major role. Established standards help reduce market conusion and encourage

    vendors to produce interoperable equipment and mass production is expected to

    bring down costs

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    Earth observation creates demand or better environmental law. Earth observation

    is an unparalleled source o inormation that conveys environmental changes in

    a visually compelling way. As a result, it is extremely useul or raising awareness

    and developing the political support necessary to strengthen environmental laws

    at the dierent levels at the dierent levels (synoptic view, global assessment and

    compliance verication)

    Social actors:

    Increased demand or inormation products.

    5.2 Technology trends

    5.2.1 Satellite technology

    There is a need to develop a coordinated suite o environmental monitoring

    instruments with long-term data continuity at appropriate spatial, spectral, and

    temporal resolutions, with:

    the possibility o accessing timely and appropriate spatial data;

    the access to computerized sotware tools that enable analysis o spatio-temporal

    phenomena; the availability o local expertise, especially at the graduate level,

    capable o developing adequate spatial analysis methodologies.

    The main trends in satellite technology are the development o constellation o

    small satellite with excellent imaging capability both in the spatial domains (in the

    one meter resolution range) and spectral domains (with hyper-spectral capabilities

    o several hundreds colour bands).

    Business in Earth observation

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    5.2.2 Geographic Inormation System

    Earth observation GIS (Geographical Inormation Systems) can undoubtedly be

    considered as one o the great successes o the use o advanced inormation

    technology or the improvement o society. The capabilities provided by satellite

    imagery, digital maps, and associated inormation have transormed our ability to

    understanding the orces that shape the geographical space.

    The combination o geographical inormation systems with satellite Earth

    observation is at the root o most o the new applications already on the market.

    5.2.3 Synergies with mobile telecommunication and navigation

    Location Based Services (LBS) are predicted to be amongst the most promising

    services o uture wide-band mobile networks, alongside with voice and multimedia

    services. They will use more and more EO data.

    The need or service guarantee or saety-o-lie and commercial applications

    has been taken into account in the design o the systems. Legal implications o

    service level commitment are driving the system implementation. Accountability

    requirements regarding service provision has led to clear traceability requirements

    on detailed system perormance history.

    5.3 Regulation and Policy

    Regulation at a number o levels international, EU-wide and national will

    indirectly drive the use o satellite Earth observation systems. In particular the

    INSPIRE directive (http://inspire.jrc.it/home.html) will control the implementation

    Business in Earth observation

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    o the data output rom uture Earth observation systems including the GMES

    system.

    Some issues have been identied:

    Requirements or updating procedures, verication and maintenance o complex

    systems will require a signicant nancial eort and highly qualied service

    support.

    Within a multilateral context o merging initiatives, alliances and internationalcooperation among space systems (GMES, GEOSS, etc), a clearer understanding

    o organizational issues will give room to more eective management solutions

    with respect to human resources, nancial arrangements, decision fow, etc.

    Increased interoperability and combination o inormation sources rom dierent

    space, airborne and in-situ systems, will result in an increased requirement or

    eective and timely decision making in a multi-cultural context.

    Business in Earth observation

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    Photo: ESA

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    6 Embracing the change

    Knowledge about the state o the environment is an essential basis or establishing

    and enorcing policy as well as in reacting to disaster situations. Without such

    knowledge one cannot assure sustainable development. Earth observation

    provides a unique and consistent input to underpin such a development and plays

    a crucial role in understanding our planet through scientic excellence, commercial

    protability and the eective achievement o social objectives.

    EO inormation is an increasingly important element o Europes knowledgesociety.

    The Earth observation value-adding sector in Europe and Canada employs more

    than 3000 people dedicated to helping customers achieve better operational and

    economic eciency. Its increased rate o growth is an essential and precious asset

    or government, industry and citizens alike.

    EO VA is a key industry or the 21st century.

    Business in Earth observation

    Embracing the change

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    Photo: ESA

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    7 Reerences

    ESA Earth observation Market Development (EOMD: www. eomd.esa.int)

    European Association o Remote Sensing Companies (EARSC: www.earsc.org)

    EOVOX Study: eoVox: www.eovox.org

    Business in Earth observation

    Reerences

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