Satellite data business to grow to $8.5 billion by 2026


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Capitalism in space: An industry analysis says that the satellite data market should grow to $8.5 billion by 2026, with the potential to reach $15 billion.

Euroconsult has identified approximately 20 companies that have announced intentions to develop lower-cost constellations to collect data at a high rate of revisit based on smallsat and cubesat technologies. As of 2017, these new operators have attracted more than U.S.$600 million in venture capital to fund their initiatives. None of the newly announced initiatives have yet reached full capacity; for these constellations to come to fruition, additional investments will be required.

Competition is expected to be fierce on the supply side, as companies must differentiate themselves in the marketplace and bring innovative solutions to maintain market share. Consolidation (such as MDA and DigitalGlobe, OmniEarth and EagleView, Terra Bella and Planet) could linger as companies refine business models and continue to seek investments. DigitalGlobe, for example, is aiming to add a lower-cost satellite constellation (Legion) to its portfolio to counter the probable impact of low-priced solutions entering the market. Airbus will also develop its own very high resolution (VHR) optical system, given that the next generation French defence system will not be commercialized.

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