Remote Sensing Technology Market Set to Witness an Uptick during 2020 to 2027

Posted by Mrudula Anil Karmarkar on March 25th, 2022

The global remote sensing technology market size is expected to reach USD 29.61 billion by 2027, expanding at a CAGR of 11.6% from 2020 to 2027, according to a study conducted by Grand View Research, Inc. Remote sensing technology is used to detect and monitor land and weather characteristics by measuring the reflected sunlight and emitted radiation from a satellite or an aircraft. Cameras fitted on the satellite and the aircraft to collect the remotely sensed images, which help organizations observe and analyze the land and forecast weather accordingly. The market is primarily driven by rising investments in earth observation projects. For instance, in August 2020, Indian earth observation startup Pixxel announced it raised investments worth USD 5 million for a constellation of Earth observation satellites.

The growing adoption of precision farming is expected to augment the market growth over the forecast period. The technology is used to identify crop conditions, determine the soil content such as moisture, and estimate the crop production. The health of crops is determined using remote sensing technology to reduce fertilizer usage, which reduces additional costs incurred by farmers. Moreover, the COVID-19 pandemic outbreak has led to the demand for remote sensing technology to monitor and curb the spread of the virus. The technology also helps to keep track of population concentration, determine mobility patterns, and document environmental changes.

The market comprises a high degree of competition due to the presence of numerous companies operating at the global level. These companies are focusing on enhancing their product portfolio to maintain and increase their market share. For instance, in October 2020, Hexagon AB announced the launch of its Power Portfolio which includes the latest version of remote sensing, Geographic Information System (GIS), and cartography products. The new versions have machine learning capabilities that help users address big data management issues.

Remote sensing technology is used for acquiring information about the earth’s surface and to analyze its physical characteristics. It uses reflected and emitted light from aircraft and satellites without the need for physical contact with the surface area under study. The market is mainly driven by the increasing number of earth observation projects by numerous space agencies. For instance, the Indian Space Research Organisation (ISRO) has thirteen earth observation satellites to date and plans to launch ten earth observation satellites during 2020-2021. The outbreak of the COVID-19 pandemic led numerous countries to impose strict lockdown measures. This led to an increase in the adoption of remote sensing technology to monitor and curb the spread of viruses and document environmental changes.

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For instance, in June 2020, NASA, Japan Aerospace Exploration Agency (JAXA), and European Space Agency (ESA) partnered to create a new earth observation dashboard that documents changes in the environment and human lifestyle due to the COVID-19 virus. The dashboard integrates numerous satellite records to allow user-friendly tracking of changes in climate, agriculture, and economic activity. Increasing adoption in smart city projects is paving the way for market growth. The technology helps authorities in zoning and urban planning, infrastructure modeling, and security and law enforcement planning. Numerous countries are focusing on developing infrastructure and are investing heavily in their smart city projects. This is expected to propel the market growth over the forecast period.

Remote Sensing Technology Market Report Highlights

• The passive remote sensing segment is anticipated to expand at the fastest CAGR exceeding 8% over the forecast period owing to the rising adoption of passive sensor technology in earth observation satellites
• The military and intelligence segment held the largest market share of 32.25% in 2020. This share is attributed to the increasing usage of remote sensing technology for surveillance applications
• The aerial systems segment is projected to expand at the fastest CAGR of over 8% during the forecast period due to the growing usage of UAVs for research and exploration applications
• North America held the highest market share of 38.12% in 2020. This share is due to the increasing adoption of remote sensing technology in the U.S. for precision farming applications

The key market players are opting for inorganic growth strategies such as acquisitions and mergers to enhance their market share. For instance, in January 2020, UrtheCast announced the acquisition of Geosys Technology Holding LLC for USD 20 million. Through this acquisition, the former company aims to enhance its market position in geo-analytics solutions for agriculture. The market players are also focusing on gaining contracts from scientific and defense agencies for various projects and augment their market share. For instance, in February 2020, General Dynamics Information Technology, Inc. announced it received contracts from the National Geospatial-Intelligence Agency (NGA), an agency of the U.S. defense department for providing earth observation technologies. Moreover, companies are focusing on investing heavily in their research and development activities to develop technologically advanced products. Some of the prominent players in the remote sensing technology market include:

• DigitalGlobe
• Esri
• General Dynamics Mission Systems, Inc.
• Hexagon AB
• Lockheed Martin Corporation
• Orbital Insight
• Planet Labs Inc.