Saudi Arabia Satellite-based Earth Observation Market Report: Size and Share Analysis, Trends, Forecasts (2024 - 2030)

Saudi Arabia Satellite-Based Earth Observation Market Size

Saudi Arabia Satellite-Based Earth Observation Market Trends & Growth Drivers

Advancements in Image Resolution Capacity and Satellite Image Processing Are Key Trend

• Development in image resolution capacity is trending in the Saudi Arabia satellite-based earth observation market. These advancements are crucial as they boost the precision and applicability of satellite data across various sectors.
• The emergence of higher-resolution sensors in satellites is one of the most-impactful developments in the area of earth observation. These sensors are helpful in capturing images with precise details, which helps in better monitoring and analysis. For example, these high-resolution images can easily differentiate between various types of crops, monitor fine environmental changes, as well as detect small-scale changes in infrastructure.
• Further, the advancements in satellite image processing with the integration of AI and ML have revolutionized the process and accuracy of data analysis.
• These technologies can automatically regulate the detected patterns, predict trends, and classify objects with more accuracy.
• For instance, AI algorithms have the ability to identify illegal logging activities, detect changes in land usage, as well as monitor the health of crops in real-time.

Rising Demand for Environment Monitoring Is Key Driver

• There has been a rising demand for environmental monitoring due to the need to address climate change, use natural resources sustainably, and respond efficiently to natural disasters.
• In Saudi Arabia, many regions face significant challenges because of climate change and environmental degradation. The extreme weather, frequent occurrences of sand and dust storms, and limited water resources in the kingdom increase the demand for advanced monitoring systems to manage and reduce their impact.
• Satellite-based earth observation offers real-time and comprehensive data on environmental conditions, allowing for the more-effective monitoring and management of these challenges.
• Further, the conservation of biodiversity and the ecosystem is important for environmental sustainability. Satellite-based earth observation supports the monitoring of wildlife habitats, protected areas, and habitat fragmentation. The information provided by satellites is vital for the conservation of the biodiversity, management of natural resources, and protection of endangered species.
• By monitoring environmental changes, authorities can implement effective conservation strategies and policies.

Lack of Skilled and Trained Personnel Is a Restraint

• The lack of skilled and trained personnel is a significant restraint for the Saudi Arabian satellite-based earth observation market.
• Moreover, there is a lack of expertise in various fields, such as geospatial analysis, satellite engineering, remote sensing, and data science.
• In Saudi Arabia, there is a dearth of highly skilled professionals with the specialized skills required to design, launch, and manage satellite missions and analyze the data generated.
• This limits the country's ability to utilize the advancements in satellite technology and hinders innovations.
• Furthermore, there are gaps in the provision of specialized and advanced training to personnel.

Saudi Arabia Satellite-based Earth Observation Market Analysis

Payload Type Insights

• The SATCOM category holds the largest market share, of 40%, in 2024. This is attributed to the crucial role of communication satellites in ensuring global connectivity. SATCOM equipment is helpful in numerous applications, such as observing military targets, monitoring weather, communication, and navigation. They facilitate essential communication services, such as internet and mobile connectivity, by transmitting signals across the Earth.
• The imaging category is projected to grow at the highest CAGR, during 2024–2030. This is due to the rise in the demand for high-resolution imaging and advanced environmental monitoring.

During the study, we analyzed the following payload types:

• SATCOM (Largest Category)
• EO/IR
• Communication
• Imaging (Fastest-Growing Category)
• Navigation

Altitude Analysis

• The below 500–600 km category holds the largest market share, of 65%, in 2024. Satellites that hover at this altitude range are mostly utilized for high-resolution imaging and detailed earth observation. This makes them preferred for a wide range of applications, which include urban planning, environmental monitoring, and defense.

Below are the altitudes covered in the report:

• Below 500–600 km (Larger Category)
• Above 600 km (Faster-Growing Category)

Technology Insights

• The synthetic aperture radar category is projected to grow at the higher CAGR, of 5.9%, during 2024–2030. This growth is attributed to the ability of this technology to capture images irrespective of weather conditions or daylight. This is a limitation in optical satellites.
• Further, the SAR technology is useful in places with a normal cloud cover, detecting minute changes in the earth’s surface, and continuous monitoring.

During the study, we have analyzed the following technology:

• Optical (Larger Category)
• Synthetic Aperture Radar (Faster-Growing Category)

Satellite Orbit Analysis

• The low earth orbit category holds a significant market share in 2024. This is due to the launch of a significant number of satellites into this orbit for a wide range of applications, including remote sensing, earth observation, and communication.
• Moreover, the cost associated with launching satellites into the low earth orbit is comparatively lower.
• Additionally, their ease of launch, together with the ability to offer high-resolution imagery and make frequent revisits, contributes to this dominance.

Below are the satellite orbits covered in the report:

• Low Earth Orbit (Largest and Fastest-Growing Category)
• Medium Earth Orbit
• Geostationary Orbit

Application Insights

• The disaster management category accounts for the largest share in 2024.
• This is primarily due to the increasing focus on data collection to retrieve information on land use patterns and wildlife trends, manage natural resources, and track biodiversity.
• This helps achieve environmental, social, and economic sustainability.

The following applications are included in the report:

• Infrastructure
• Environment Monitoring (Fastest-Growing Category)
• Energy
• Natural Resources Monitoring
• Maritime
• Disaster Management (Largest Category)
• Others

Regional Analysis

Al-Riyadh Is Largest Market

• Geographically, Al-Riyadh holds the largest market share in 2024.
• This dominance is due to the significance of the region as the national capital and its high economic and administrative importance.
• This is resulting in a high demand for earth observation data for infrastructure development, urban planning, and government projects.
• The Eastern region is projected to grow at the highest CAGR during 2024–2030.
• This is due to the richness of the region in oil and gas reserves, which is driving the demand for satellite-based earth observation for resource management, environmental monitoring, and infrastructure development, to support the energy sector.

The provinces analyzed in this report include:

• Al-Riyadh (Largest Provincial Market)
• Makkah
• Al-Madinah
• Al-Qaseem
• Eastern Region (Fastest-Growing Provincial Market)
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Saudi Arabia Satellite-based Earth Observation Market Share

Market Nature – Fragmented

The market for satellite-based earth observation in Saudi Arabia is moderately fragmented with the presence of both global, regional, as well as small, local market players. These companies offer numerous services, including manufacturing satellites, as well as processing data, value-added services, and analytics.

Further, the key market players are engaging in partnerships as well as acquisitions for increasing their presence and market share. In addition, new companies are entering the market, which will result in stronger competition rivalry in the coming years.

Saudi Arabia Satellite-based Earth Observation Market News

• In May 2023, Arabsat and Loft Orbital (Loft) signed an MoU for collaborating on LEO missions. Both companies will create infrastructure that will cater to the needs of Arabsat’s customers in various sectors. It will utilize the space infrastructure platform of Loft to offer earth observation services to all 22 Arab League members. This will enable the development of reliable applications in agriculture, border and maritime monitoring, transport and logistics, and environmental protection.