According to SpaceNews, Novaspace’s latest Earth Observation Market report reveals a dramatic industry shift toward defense priorities and AI integration. The EO data market hit $2.2 billion in 2024, growing at 7% annually since 2019, with defense applications now making up over 65% of all data demand. Meanwhile, value-added services reached $3.2 billion and are projected to hit $5 billion by 2034. Geopolitical tensions are pushing nations toward sovereign observation capabilities, while companies are pursuing vertical integration and partnerships to cover the entire information chain. Senior Manager Alexis Conte notes that the next decade will be defined by “integration and interoperability” rather than standalone constellation projects.
Sponsored content — provided for informational and promotional purposes.
Sovereignty trumps everything
Here’s the thing that really stands out: nations aren’t just buying more Earth observation data—they’re fundamentally changing how they buy it. The demand for sovereign control means countries want guaranteed access to both high-resolution imagery and rapid revisit rates. Basically, they’re not willing to rely on single suppliers or shared international systems anymore. And who can blame them? With global tensions rising, having your own eyes in the sky becomes non-negotiable.
AI is the real game-changer
But the bigger story might be how artificial intelligence is transforming what we can actually do with all this data. We’re moving beyond pretty satellite pictures to actual actionable intelligence. The report highlights data fusion—combining multiple sensor inputs—as the next frontier. Think about it: thermal, radar, optical, and other sensors all working together, with AI making sense of the chaos. That’s why specialized service providers are emerging who can orchestrate these complex architectures.
Security gets serious
Now here’s where it gets really interesting. As these systems become more interconnected, security is becoming a strategic imperative. We’re talking quantum key distribution and secure data relay technologies becoming standard features. When you’re dealing with defense-grade intelligence, you can’t have vulnerabilities in your data chain. The market is essentially maturing from “cool space tech” to “critical national infrastructure.”
What comes next?
So where does this leave us? The full Novaspace report suggests we’re looking at a more coordinated approach across government agencies, extending EO applications from strategic planning down to tactical operations. The days of siloed satellite programs are ending. Instead, we’re building integrated networks where commercial providers, government agencies, and specialized service providers all play interconnected roles. It’s a fundamental reshaping of an entire industry—and it’s happening faster than anyone expected.
