Spain Satellite-based Earth Observation Market

Spain Satellite-based Earth Observation Market Analysis

The Spain Satellite-based Earth Observation Market is expected to register a CAGR of 9.78% during the forecast period.

The Spain Satellite-based earth observation market has been witnessing substantial growth in the past few years due to major market vendors such as SATLANTIS, Alen Space, etc., coupled with the growing demand from various end-user sectors.

• The Span satellite-based Earth-observation market has been witnessing significant growth in the past few years owing to substantial investments in the space sector and various launches of Earth-observation satellites in line with the National Satellite Earth Observation Program. Further, the growing environmental concerns, coupled with an increasing focus on the defense and security sector, are driving the satellite-based earth observation market in the country.
• Moreover, the continuous technological innovation in the satellite-based earth observation market from major market vendors in the country to offer solutions for environmental challenges is driving the market in the country. For instance, through disruptive technological Earth Observation capabilities, SATLANTIS offers the market complete solutions to address today's challenges, such as sustainability, digitization, and optimization of multiple economic sectors. Further, companies such as Open Cosmos offer earth observation satellites to collect critical Earth data for economic, environmental, or security decisions.
• Furthermore, the government is making significant strides in promoting, implementing, and developing research, technological development, and innovation in space, security, and national defense, which is expected to benefit the studied market growth in Spain positively. For instance, in March 2023, Spain's Council of Ministers voted to allow the Spanish Space Agency (AEE) to start operations on March 7. The newly created space agency will guarantee Spain's strategic action in space, both from the point of view of its technological development and the use of space in areas such as earth observation, security, geolocation, and telecommunications.
• Additionally, in the past, the country has launched Earth observation satellites such as PAZ, which provides Earth observation capabilities for multiple civilian applications, from maritime monitoring and infrastructure planning, to high-resolution mapping in Spain. Further, the country's government also launched several initiatives to boost the demand for satellite-based earth observation solutions in the coming years. For instance, PERTE Aerospace pursues establishing a space technology program to generate new innovative and industrial capacities of its own that provide services related to the environment and the cohesion of the territory.

Spain Satellite-based Earth Observation Market Trends

Rising Need to Generate Big Data to Offer Accurate Insights into Earth Observation

• The earth observation market in Spain is continually expanding with the integration of new technologies, sensing modalities, and unconventional data sources. Further, as the demand for earth observation data increases to address environmental concerns, population challenges, climate disasters, etc., the demand for capturing the earth observation data on various scales increases, thus increasing the demand for satellite-based Earth observation.
• Further, data from EO programs continues to grow exponentially, and an enormous amount of raw data will need to be processed and made available to become available. This has increased the demand for EO data analytics in the satellite-based earth observation market. Technological advances in the past few years have allowed for more and better insights resulting from the earth observation data, thus positively driving the growth of the studied market.
• Further, the growing demand for data analytics to provide accurate insights into the earth observation across various industries according to their requirements demands a large amount of data. This has led to the emergence of new startups and funding in the data analytics field in the country, thus positively impacting the growth of the market. For instance, according to the Fundación Innovación BankinterFurther, Spanish startups active in the business and productivity sector received the most venture capital, corporate, and private equity capital (EUR 530 million) from investors. Barcelona-based Typeform, which offers data analytics services, received EUR 123 million in funding.
• Additionally, the earth observation data is gaining significant uses in various end-user sectors, thus further providing growth prospects to the market. For instance, in April 2023, Egis teams announced to completion of an innovative pilot project on behalf of the City of Valencia in Spain to demonstrate how Earth observation data and the European Union Agency for the Space Programme 'EUSPA' from Copernicus could support decision-making at the municipal level to improve quality of life for citizens. The twelve-month project identified use cases spanning urban planning, climate change mitigation, emergency management, and natural resource management.

Energy and Raw Material Segment is Expected to Gain Significant Traction

• The energy and raw material segment is expected to witness significant adoption of satellite-based earth observation solutions in Spain as EO has multiple applications related to renewable energy and raw materials: for instance, helping select locations with optimal conditions (e.g., forecasting UV radiation or wind conditions for renewables and assessing abundancy of certain minerals for mining) or planning and monitoring the construction process.
• Further, the increasing power crisis and rising electricity prices, coupled with the growing focus on sustainability in the country, are driving the demand for renewable energy sources. Various stakeholders such as governmental authorities, energy and utility companies, energy traders and supply chain managers, and mining companies get benefitted from satellite technologies that can provide invaluable data in the form of various Earth Observation applications.
• The country is making substantial investments in the renewable energy field and rapidly transitioning from non-renewable energy sources to renewable energy sources. Goals on climate neutrality drive innovation in the energy and raw materials market and subsequently increases the demand for satellite-based earth observation solutions to provide an innovative and cost-effective way to support asset planning, asset management, and risk management in energy production. For instance, according to the data from REE, the share of energy from renewable sources in electricity generation in Spain increased from 20.5% in 2008 to 42.2% in 2022.
• Furthermore, EO applications related to renewable energy production are more widely used in planning and monitoring. Earth observation data are also used in forecasting and nowcasting models in the energy and raw materials segment. This results in more precise data and helps electricity grid operators to adapt their production quickly. EO data can also be used for mapping different city zones to better understand the amount, regularity, and distribution of electricity needs. Such factors further support the growth of the satellite-based earth observation market in the energy and raw material field.

Spain Satellite-based Earth Observation Industry Overview

The Spain Satellite-based Earth Observation market is moderately consolidated with the presence of significant market players such as SATLANTIS, Alen Space, Thales, Airbus, etc., holding a significant market share. The market vendors are indulging in partnership and acquisition activities to enhance their satellite-based earth observation portfolio and better to serve the increasing demand from the various end-user industries.

• January 2023 - The Spanish companies Alén Space, DHV Technology, Elecnor Deimos, and SATLANTIS have announced the formation of an alliance to propose a joint proposal for the production of the eight satellites that would comprise Spain's participation in the future Atlantic Constellation. This agreement allows Spanish enterprises to coordinate their efforts and combine their talents to respond to the needs of the Atlantic Constellation, which is one of PERTE Aerospace's essential tasks. This project will include 16 satellites with telecommunications and Earth observation payloads, eight of which will be built in Spain.

Spain Satellite-based Earth Observation Market Leaders

Spain Satellite-based Earth Observation Market News

• April 2023 - SATLANTIS MICROSATS, S.A., a European provider of high-resolution optical payloads for small satellites, entered into a strategic partnership with SuperSharp Space Systems Ltd., a University of Cambridge spin-off specialized in thermal infrared payloads for Earth Observation satellites. SATLANTIS has acquired a controlling interest in SuperSharp Space Systems Ltd., which will provide the industrial and financial resources required to expand SATLANTIS ahead of its In-Orbit Demonstration (IOD), scheduled for 2025.
• January 2023 - The European Commission authorized SATLANTIS to acquire space activity in the area of Defence and Earth Observation from EVERIS. The two firms entered a strategic partnership that started in 2016 and produced vital results, such as a 45 cm resolution space camera.