The demand for location-based services provided by the commercial satellite imagery industry rose dramatically in the last two years and will grow threefold by 2015, according to a recent study by a consulting firm.
The study by Boston-based OC&C Strategy Consultants said that location-based services had revenues of $4 billion in 2011, up by $1.2 billion from the previous year. The study predicted the market will exceed $15 billion by 2015.
Location-based services are essentially the coupling of global positioning system (GPS) data with mapping imagery to allow end users, for example, to use GPS navigation in their cars or a smart phone while on the sidewalk, to get orientated on a map.
OC&C Strategy Consultants said the market for the services highlights role of government driven innovation spilling into the commercial sector to create a booming market. The development mirrors the evolution of the internet or GPS.
“We may anticipate significant and increasing commercial, technological, and economic returns from this evolving industry,” said the report. It’s titled “The Economic Impact of the Commercial High Resolution Satellite Imagery Industry: The Growth of Commercial Location Based Services” and was completed in February.
The study was funded by DigitalGlobe [DGI]. DigitalGlobe and GeoEye [GEOY] constitute the two largest providers of commercial satellite imagery.
The study estimated that in 2010 more than $4 billion in revenue was created in the commercial high resolution satellite imagery market.
“Government funding of commercial high resolution satellite imagery providers has spawned major innovation and advancement both in satellite technology and in downstream purchasers and businesses, creating considerable value and significant contribution to the U.S. economy,” the study said.