The Earth Observation (EO) industry, which uses satellite data to monitor the planet, is projected to add $3.8 trillion to the global economy by 2030, according to a new report from the World Economic Forum. This rapid growth is driven by a shift from government-led projects to commercial applications that address climate change, resource management, and food security.
Key Takeaways
- A World Economic Forum report projects the Earth Observation industry could add $3.8 trillion to global GDP by 2030.
- The technology is also expected to help eliminate two gigatonnes of greenhouse gas emissions annually.
- Commercial companies now account for 90% of satellite launches, a significant increase from 15% in 2014.
- Startups like Constellr are developing real-time monitoring systems for planetary health, focusing on temperature, water, and carbon cycles.
From Space Images to a Trillion-Dollar Industry
The concept of viewing Earth from space has evolved significantly since its early days. What began with speculative fiction, like Johannes Kepler's 17th-century novel Somnium, became a reality in October 1946 when a V-2 rocket captured the first grainy image of our planet from space.
Subsequent milestones, including the 1960 launch of NASA's TIROS-1 weather satellite and the iconic 1972 "Blue Marble" photograph from Apollo 17, established the scientific and cultural importance of observing Earth from orbit. These early efforts laid the groundwork for today's advanced satellite networks.
A Brief History of Earth Observation
- 1946: The first image of Earth from space is taken by a V-2 rocket.
- 1957: The launch of Sputnik proves sustained orbital access is possible.
- 1960: NASA's TIROS-1 becomes the first successful weather satellite, demonstrating the practical value of space-based imagery.
- 1972: The Apollo 17 crew captures the "Blue Marble" photo, a powerful symbol for the environmental movement.
Today, Earth Observation is less about singular images and more about continuous streams of data. This information supports critical decisions in both the public and private sectors. According to a new playbook from the World Economic Forum, the industry's economic impact is set to expand dramatically.
Economic and Environmental Projections
The WEF report estimates that by 2030, the EO industry could not only contribute $3.8 trillion to global GDP but also help eliminate two gigatonnes of greenhouse gas emissions each year by enabling more efficient resource management and climate monitoring.
The Commercial Shift in Earth Observation
A fundamental change is occurring in the space sector. While government agencies once led space exploration and observation, commercial companies are now the primary drivers of innovation and deployment. In 2023, 90% of satellite launches were conducted by private entities, a stark contrast to just 15% in 2014.
Despite this surge in commercial activity, the adoption of EO data has not kept pace. The WEF report notes that many potential users, particularly in the private sector, have yet to move from small-scale experiments to fully integrating this data into their core operations. The primary users remain public-sector organizations focused on weather, defense, and environmental monitoring.
Unlocking Full Potential
To bridge this gap, the playbook suggests a three-step approach for business leaders to capitalize on EO technology:
- Define the Value: Identify business challenges where frequent monitoring over large areas is required, such as supply chain logistics, precision agriculture, or ESG reporting.
- Ensure Strategic Alignment: Position EO as a tool that supports multiple business functions, including strategy, finance, and sustainability, rather than treating it as an isolated technology project.
- Develop an Execution Plan: Determine the best way to access and use data, whether through open-source platforms, commercial partnerships, or by combining satellite imagery with proprietary company data.
Effectively implementing these steps can help organizations build the confidence needed to adopt EO solutions for tasks like monitoring infrastructure, tracking agricultural yields, and verifying environmental compliance.
Case Study Constellr's Real-Time Planetary Atlas
Startups are playing a crucial role in making EO data more accessible and actionable. One such company is Constellr, which is building what its co-founder and CEO, Max Gulde, calls a "real-time atlas of the planet’s health." The system uses a constellation of satellites to monitor Earth's temperature, water, and carbon cycles.
"Imagine Google Earth… but imagine it being not three months old or six months old or two years old in data, but being real-time in data and also not just looking at the visual reality… but looking at the physical state of our planet," Gulde explained.
Gulde stated that temperature is the fundamental variable influencing these critical systems, affecting everything from food production to water availability. Constellr aims to provide a consistent, global measurement of this key metric.
Enabling Technology and AI
Constellr has already launched two satellites and is preparing a third. Gulde attributes the company's progress to several factors, including lower launch costs and technological advancements. "Right now, a launch is around 20% of the cost of a satellite," he noted, adding that their smaller satellites, weighing 100 to 200 kilograms, can achieve better performance than larger, traditional satellites at "less than 1% of the cost."
Artificial intelligence is also a key enabler, not for building the hardware, but for processing the vast amounts of data collected. "A lot of the challenges in the adoption of the technology lie in the fact that it still needs to be tailor-made for the respective customers," Gulde said. "Now you can use AI to adapt it relatively quickly and that is a big advantage."
Related Innovations in Frontier Technology
The rapid progress in Earth Observation is part of a broader wave of innovation across several technology fields. Recent breakthroughs in quantum computing, robotics, and battery technology highlight this trend.
Advances in Quantum Computing and Robotics
Researchers at Harvard and MIT recently developed a quantum computer that operated continuously for over two hours, a major improvement over previous machines that functioned for mere seconds. This advance in qubit stability could pave the way for quantum computers that can run indefinitely within a few years.
In robotics, China's DEEP robotics unveiled an all-weather humanoid robot standing 175 cm tall. The machine has an IP66 waterproof and dustproof rating and is designed to perform tasks like factory operations and security patrols in extreme temperatures ranging from -20°C to 55°C.
Next-Generation Battery Technology
Scientists in China have also reported progress in developing next-generation solid-state batteries. They created a self-healing interface that fills gaps between battery layers, which could allow batteries for smartphones and electric vehicles to last up to three times longer on a single charge without requiring the heavy pressure needed in previous designs.