Remote Sensing Technology Market Size, Share & Trends Analysis Report By Technology (Active, Passive), By Application (Agriculture, Military, Disaster Management, Weather), By Platform, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global remote sensing technology market size was valued at USD 12.40 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 11.6% from 2020 to 2027. Remote sensing technology is used for acquiring information about the earth’s surface and 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.

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. The 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.

The need for high initial investments in the manufacturing of numerous components is impeding the growth of the remote sensing technology market. The market players need to manufacture components and encrypt data content that meets the standards set by regulatory organizations. This limits the growth possibilities for companies in the market. However, increasing adoption in research and exploration applications is expected to drive the market in the next seven years.

The growing adoption of Internet of Things (IoT) technology in the agriculture sector is anticipated to drive market growth over the forecast period. IoT in agriculture uses remote sensors, drones, robots, and computer imaging to monitor crops and provide data to farmers for effective farm management. IoT-based remote sensing employs sensors placed on farms and collects data that is transmitted for analysis purposes. Farmers can monitor the crops from an analytical dashboard and act accordingly based on the insights.

Technology Insights

The passive remote sensing segment held the largest market share of 57.48% in 2019. Passive remote sensing technology measures the reflected sunlight from the earth’s surface to monitor and analyze surface characteristics. The technology provides high-quality satellite images and hence is widely used for earth various observation applications.

The active remote sensing segment is anticipated to expand at a CAGR of over 6% during the next seven years. This technology emits its own light to monitor and analyze the surface characteristics. The active remote sensing technology overcomes the drawbacks of passive remote sensing, which cannot be used to analyze surface characteristics at the night. Active remote sensing technology is widely used for measuring forest structure, ice, and sea surface topography, among others. 

Application Insights

The military and intelligence segment held the largest market share of 32.25% in 2019. This is attributable to the growing adoption of technology by developed countries to monitor and prevent criminal and destructive activities. Moreover, countries such as China and Russia are focusing on using satellite images for defense applications. These factors are expected to boost demand over the next seven years.

The disaster management segment is anticipated to register the fastest CAGR of over 16.9% during the forecast period. The technology provides vital information related to natural disasters such as storms and volcano eruptions. The availability of continuously updated data helps authorities make better decisions related to evacuations and actions to be taken post the disaster. The application segment also comprises agriculture and living resources, infrastructure, weather, and others.

Platform Insights

The aerial systems segment held the largest market share of 69.10% in 2019. This is attributable to the increasing usage of a drone or Unmanned Aerial vehicles (UAV) in aerial mapping. Usage of drones in surveying fields reduces cost and helps gather data at a faster rate. Moreover, surface mapping over these devices provide data of high accuracy and survey area that cannot be accessed over satellites.

The satellite segment is estimated to expand at a considerable CAGR exceeding 4% over the next seven years. This is attributable to the increasing earth observation projects by major space agencies such as NASA. Additionally, increasing the adoption of satellite-based images for weather forecasting is another factor expected to propel the demand over the forecast period. Meteorological satellites can estimate the winds near the sea surface from space, which is useful for locating and tracking cyclones.

Regional Insights

North America held the largest market share of 38.12% in 2019. This share is attributable to the presence of key market players such as Lockheed Martin Corporation; Esri; General Dynamics Mission Systems, Inc.; and Raytheon Technologies Corporation. The adoption of remote sensing technology in precision farming applications is anticipated to fuel the market growth during the forecast period. The technology provides water resource managers tools to mitigate the impact of dry spells and drought and match crops' irrigation needs.

Asia Pacific is projected to expand at a notable CAGR of over 12% during the forecast period. This is attributable to the increasing adoption of earth observation for infrastructure development applications. Countries such as China, Japan, Australia, and India are considered the region’s most lucrative markets for remote sensing technology providers. Government initiatives for urban infrastructure development such as India’s Smart City Mission are also expected to augment the regional market growth.

Key Companies & Market Share Insights

The key market players are opting for inorganic growth strategies such as acquisitions and mergers to enhance their market share. For instance, in January 2019, 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 augmenting their market share. For instance, in February 2019, 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.

Remote Sensing Technology Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global remote sensing technology market report based on technology, application, platform, and region:

• Technology Outlook (Revenue, USD Million, 2016 - 2027)

  • Active Remote Sensing

  • Passive Remote Sensing

• Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Agriculture & Living Resources

  • Military & Intelligence

  • Disaster Management

  • Infrastructure

  • Weather

  • Others

• Platform Outlook (Revenue, USD Million, 2016 - 2027)

  • Satellite

  • Aerial Systems

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • The Middle East & Africa