Euroconsult Study: EO value-added services in Europe generated €390million in 2005

48 market segments in satcom, satnav and EO analysed …

The study “Assessment of the downstream value-adding sectors of space-based applications” was completed over an 18 month period with the objectives to assess the current and future scenarios for the value-added services markets worldwide, taking into account strategic, technological and regional trends, market’s supply, demand and dynamics. Market valuation and forecast based on quantitative and qualitative analysis and a benchmark of the European value-added market produced.

This extensive study took into account 48 market segments across the three satellite service value chains; satellite communications, satellite navigation and Earth observation.

Overall, value-added services generated €73 billion worldwide across the satellite service sectors in 2005. The revenues generated by Earth observation represent approximately 2% of the total.

• The Satcom value chain is currently the most developed in terms of commercial revenues with consolidated turnover of €54 billion, €46 billion of which is generated by the direct-to-home television market

• Satnav generated €17.3 billion in 2005

• EO generated €1.3 billion in 2005

EO value added services are estimated to have generated revenue of €390 million in 2005 for the European and Canadian service sector. Meteorology represents the largest source of revenues with €211 million (54% of total revenues). By 2015 revenues for Earth observation value-added services in Europe are expected to be in the €600 million to €820 million range, representing a CAGR of between 6%-10%. Among the key findings of the report were:

• EO markets have shown a less promising profile than perceived expectations from market players during the last ten years. The development/sustainability of products and services in almost all market segments remains conditional upon strong public sector backing

• Private investors and insurers are showing limited acceptance and understanding of EO products. Apparition of public private partnerships, especially in Europe, is seen as a major step towards improved access to private capital

• The biggest growth area is Homeland Security due to increased public expenditure over the last 5 years with growing requirements from defence and civil customers. GMES in Europe participates to better structure the market.

• Oceanography, particularly Marine Transport is anticipated to be the second highest growing market. Increased levels of shipping activity and marine hydrocarbon exploration worldwide are being met by advances in ship-routing through satellite navigation and radar technology

• A number of market segments, such as Humanitarian Relief and Water Resource monitoring, are still waiting to emerge remaining in a technology phase under government based initiatives where there is little or no commercial interest

• In the future, market accessibility in developing countries is expected to become more difficult due to a large number of projects implemented in many countries such as Thailand, Nigeria, Turkey, Chile, etc (77 satellites planned over the next ten years), increasing capabilities of terrestrial solutions including airborne LIDAR and UAVs will also increase pressures in some markets

• Consumer related services are just emerging but with strong support from large IT and web companies such as Microsoft, Yahoo! and Google, providing strong confidence for future market growth.

The study team was composed of

- Euroconsult (France): Project management, satcom, Earth observation

– Jon Styles, Assimila (UK): Earth observation

- Helios (UK): satnav

- Bertin Technologies (France): technology trends

The team would also like to thank the numerous companies and individuals who took part.

Euroconsult is an employee-owned company with over 500 clients in 50 countries. Since its creation in 1983, the company has become a worldwide reference for expertise and independent advice on satellite application and digital broadcasting for innovative and high-technology companies.
Euroconsult’s service capabilities include independent assessments of business plans and government policies, market assessments, financial valuations, risk assessments and feasibility studies.

Euroconsult also host the World Satellite Business Week, September 3-6, 2007, Hotel Westin, Paris. (http://www.satellite-business.com)

For further information please contact;

Adam Keith

Keith@Euroconsult-ec.com

Tel. +33 (0)1 49 23 75 27

Fax +33 (0)1 48 05 54 39

(Source Euroconsult)