Middle East Satellite Imagery Services - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Middle East satellite imagery services market is valued at USD 0.19 billion in the current year. It is expected to register a CAGR of 10.91% during the forecast period to become USD 0.32 billion by the next five years.

Key Highlights

• The rising deployment of high-resolution imaging satellites, as well as the rise in various significant technological developments in satellite technology, including the availability of sophisticated analytical and data processing tools, contribute to the growing Satellite Imagery Services industry in the Middle East region. These developments are expected to improve the overall usability and accuracy of satellite imaging data, offering new application possibilities and boosting the total demand for satellite imagery services within the region.
• The Middle East is a significant hub of the oil and gas industry. The high-resolution satellite imagery can support utilities in monitoring gas and electric transmission corridors and rights-of-way, monitoring vegetation intrusion on distribution and transmission lines, accurate and economical corridor analysis mainly for power and gas pipelines, mapping for cable placement, and many others. Also, rapid Infrastructure development and the rising construction projects in the Middle East region require accurate and up-to-date geospatial information, which in turn is leading to a greater demand for satellite imagery services.
• Also, collaborative initiatives between Middle Eastern countries and international space agencies or satellite service providers can maximize access to satellite data and services. Advancements in satellite technology, such as improved data processing capabilities, high-resolution sensors, and lower launch costs, make satellite images more affordable and accessible. The overall usage of data analytics and artificial intelligence processing and analyzing satellite imagery, providing valuable insights for various industries, is thus expanding, creating demand for the market significantly.
• Moreover, to increase the overall consumer base and better meet their demands across various applications, significant companies are also investing, merging with other businesses, and investing in new projects. For instance, in May 2023, Bayanat, a provider of artificial intelligence (AI)-powered geospatial solutions, and Al Yah Satellite Communications Company PJSC (Yahsat), the UAE's flagship satellite solutions provider, declared a comprehensive Space Program mainly aimed at building national satellite remote sensing and Earth observation capabilities within the UAE primarily to commercially address the key business opportunities in the global and local Earth observation market.
• However, factors like high-resolution images offered by other imaging technologies within the region might restrain the market's growth during the forecast period.
• The overall impact of COVID-19 on the Middle East satellite imagery services market was significant. The COVID-19 pandemic situation led to an economic slowdown, affecting various sectors and industries. Many businesses faced financial constraints, thereby leading to reduced investments in technology as well as geospatial services, including satellite imagery. However, during the post-COVID-19 period, the market is expected to witness ample growth opportunities throughout the forecast period, mainly due to the increasing usage of satellite data within the region.

Middle East Satellite Imagery Services Market Trends

Increasing Adoption of Location-based Services

• Location-based services rely significantly on geospatial data, which involves information about specific geographic locations. Satellite imagery services deliver high-resolution as well as up-to-date images of these locations, thereby forming a fundamental layer of geospatial data. Location-based services also include navigation and mapping applications. Satellite imagery is thus extremely essential for building detailed and accurate maps. Hence, by offering visual context in navigation apps, it helps the users see real-world landmarks and terrain, which further helps them navigate more effectively.
• Satellite imagery plays a vital role in smartphone applications as well as mapping applications. It delivers detailed and up-to-date maps, allowing users to locate businesses, find directions, and explore unknown areas efficiently. Many smartphone features and apps, such as maps, navigation, and location-based notifications, heavily rely on satellite imagery to deliver users with accurate and context-aware information. This enhances the overall usefulness and experience of these services.
• In March 2023, Comtech announced that it was awarded a substantial contract worth approximately USD 29 million by Al Yah Satellite Communications Company PJSC (Yahsat), the leading satellite solutions provider in the United Arab Emirates. The contract pertains to the provision of cutting-edge communication technologies and location services, primarily for operation on Yahsat's Thuraya 4-NGS satellite constellation. Within the scope of this agreement, Comtech is tasked with the development, design, integration, installation, and testing of communication and location-based technologies for Yahsat's Location Tracking Services Platform and User Terminals. These comprehensive solutions from Comtech are geared towards facilitating seamless communication and advanced location-based services for Yahsat's network end users.
• Smartphones providing constant connectivity to the internet enable users to access location-based services with the help of built-in GPS, and smartphones can offer precise location, enabling them to leverage various location-based applications. Moreover, smartphones can be significantly utilized to facilitate targeted advertising based on the user's location.
• According to Ericsson, the total number of smartphone subscriptions within the Middle East and North Africa is anticipated to reach around 797 million by 2028. As of 2022, there were around 559 million smartphone subscriptions within the Middle East and North Africa. With such a significant rise in the overall number of smartphone subscriptions in the Middle East region, it is expected to amplify the growth opportunities throughout the forecast period.

UAE is Expected to Hold Significant Market Share

• The UAE government has taken various significant proactive measures mainly to develop its space industry, recognizing the immense potential of space technology as well as Earth observation capabilities. These initiatives have positioned the entire country as a vital player in the global satellite imagery services market, thereby fueling advancements in data analytics, satellite technology, and remote sensing applications.
• The UAE government established the Mohammed bin Rashid Space Centre (MBRSC) and the UAE Space Agency to spearhead space-related activities. These specialized entities play a pivotal role in operating, developing, and promoting satellite imagery services for commercial as well as governmental purposes. Moreover, the UAE cabinet approved the National Space Strategy 2030, which involves 79 space science and research projects, assembly, manufacturing, testing, and various commercial space services.
• The UAE's prime vision for smart cities also necessitates various significant advanced technologies and data-driven solutions. Satellite imagery services deliver valuable insights into various aspects of smart city implementation, such as traffic management, energy consumption, waste management, and environmental monitoring. Satellite data also allows the integration of smart technologies as well as the seamless functioning of interconnected urban systems, thereby guaranteeing efficient resource management.
• Furthermore, major companies are actively pursuing mergers with other enterprises and investing in new projects to expand their customer base and better address diverse applications. For instance, in September 2023, Bayanat joined forces with HySpecIQ and AzurX to primarily enable hyperspectral imaging and analysis in the United Arab Emirates. This partnership was formally established through a Memorandum of Understanding (MOU) signed by key figures, including Hasan Al Hosani, Managing Director of Bayanat, Bill Sullivan, Chairman of HySpecIQ, and Anna Hazlett, CEO of AzurX. This collaborative effort is set to enhance and accelerate the development of space expertise in the UAE and the broader region.
• Also, in May 2023, Planet Labs PBC, a provider of daily insights and data about Earth, partnered with the United Arab Emirates Space Agency to create a regional satellite data-driven loss and damage atlas, especially for climate change resilience. The initiative mainly aims to deliver data to a select country facing greater degrees of climate risk to assist in building resilience, making informed policy decisions, and stimulating financial programs for climate mitigation and adaptation purposes.

Middle East Satellite Imagery Services Industry Overview

The Middle East satellite imagery services market exhibits a moderate level of fragmentation, featuring key industry players like Thales Group, Airbus SE, and Space Imaging Middle East. These market participants are employing various strategic initiatives, including innovations, partnerships, mergers, and acquisitions, to enhance their product portfolios and attain sustainable competitive advantages.

In May 2023, Iceye, a Finland-based company, announced a collaborative agreement to develop a five-satellite constellation for Bayanat, a geospatial analysis firm based in the United Arab Emirates, in conjunction with Emirati fleet operator Yahsat. This partnership between Iceye and Bayanat, supported by Yahsat, aims to facilitate the comprehensive establishment of a sovereign Earth-observation ecosystem. This ecosystem will empower these companies to offer a wide range of advanced solutions while also contributing to scientific progress, skill development, and sustained economic growth.

In April 2023, the King Abdullah University of Science and Technology successfully launched a Cubesat satellite in collaboration with Spire Global, Inc. This launch occurred as part of the SpaceX Transporter-7 mission from Vandenberg Space Force Base. The subscription model offered by the space company, Spire Global, Inc., primarily enables organizations like KAUST to efficiently expand and deploy their satellite constellations with minimal risk and maximum speed. The satellite's primary mission is to collect high-quality, high-resolution data across global terrestrial, ocean, and coastal ecosystems. This data will assist Saudi Arabia in characterizing and monitoring its unique natural resources.

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