Albany, NY -- (SBWIRE) -- 11/03/2016 -- The global commercial satellite imaging market is poised to rise at a CAGR of 11.4% between 2015 and 2023, reaching an estimated value of US$6.48 bn by 2023 from US$2.73 bn in 2015. North America will continue to be the leading regional market in terms of revenue until 2023. The increasing government funding in the U.S. for the launching of all commercial satellites and the rising number of ambitious startups are contributing to the growth of the region. Due to steadily growing agricultural and industrial sectors, Latin America is expected to exhibit a noteworthy 14.52% CAGR during the forecast period.

By application, defense and intelligence was the dominant segment in 2015. Due to rising demand for satellite imagery and geospatial products from government agencies and defense contractors for several applications such as battlefield management and mission rehearsal, the segment is expected to retain its leadership until 2023, representing 28.6% of the overall market revenue. However, with the rapid urbanization and growing need for terrain surface elevation models, the geospatial technology segment is anticipated to expand at a significant CAGR during the same period.

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Technological Developments in Aerospace Sector Due to Government Funding to Fuel Growth Prospects

The global commercial space economy is gaining significant traction due to growing government spending on several space programs to incorporate technological developments in the aerospace sector. This is enabling various private sectors to use these technological developments in expanding their economic activities, thereby boosting the demand for commercial satellite imaging.

Moreover, there has been rising demand for high-resolution satellite imagery such as hyperspectral imaging from homeland security agencies, national defense organizations, environmental protection and national development organizations, and various commercial sectors including food and pharmaceutical. Continued improvements and a widening application base of digital imaging processing techniques are further boosting the demand for high-resolution satellite imagery, thereby fuelling the growth of the global commercial satellite imaging market.

Rising Trend of CubeSats Development to Hamper Overall Revenue Generation

Many startups are developing smaller satellites, or CubeSats, with a lower cost of manufacturing, launch, and operation. "In order to compete with these emerging startups, it is estimated that bigger companies would also enter the segment by providing better imaging quality at much lower costs in the future," says a TMR analyst. This will drag the overall revenue of the market down.

Furthermore, due to greater accuracy and efficiency, the demand for high-resolution commercial satellite imaging is increasing. However, the high cost of these imaging techniques is leading governments to be more cautious regarding their funding to various commercial satellite imaging companies. These factors are, collectively, restraining the growth of the global commercial satellite imaging market. On the other hand, the increasing emphasis on earth science analytics technology along with rising adoption of cloud-based technology is creating a high growth opportunity for the market.

The global commercial satellite imaging market is going through rapid changes owing to advancements made in both high-resolution imagery technology and the size of commercial satellites. The moderately fragmented market consists of a limited number of players catering to various end-user industries including government and commercial enterprises, finds Transparency Market Research (TMR) in a new study.

"While emerging players such as Skylab Analytics, BlackSky Global, and Spaceknow Inc. are experimenting with satellite's size and cost in order to compete with prominent players, leading companies such as DigitalGlobe Inc. are extending their reach to address new markets including agriculture, forestry, and energy," says TMR's lead analyst.