Unlocking EO Technology across Industries
Optimism among Earth Observation (EO) industry professionals persists regarding the role AI and EO can play in driving market growth. Not only are new AI models expected to supercharge the ability to analyse immense catalogues of EO data, but it is also expected to power new ways of interacting with it. If successful, AI-enabled services stand to make EO accessible to non-experts and dramatically lower the demand-side barriers to entry.
The earliest waves of EO adoption most benefited tech-ready industries such as insurance, financial services, mining, oil and gas, which were able to uncover novel insights for decision-making. Industries such as agriculture, government, electricity, utilities, supply chain and transport are expected to capture the lion’s share of value in the future.
94% of the potential economic value added from EO is expected to be driven by applications in the six key industries
1️⃣ Agriculture
2️⃣ Electricity and Utilities
3️⃣ Government, Public and Emergency Services
4️⃣ Insurance and Financial Services
5️⃣ Mining, Oil and Gas
6️⃣ Supply Chain and Transport
In the previous post, I shared use cases from a climate and environmental monitoring as well as a disaster management perspective. Below, I give examples of how these can be applied to the six key industries listed above:
Agriculture Industry Use Case
Those in the agriculture sectors can use this as an early warning. Early Warnings can be use to predict famine situations, or important crop shortages like corn and wheat. This can then be used to inform mitigating action by governments or non-profits.
Similarly, EO technology can be used for Vulnerability Forecasting and provide seasonal weather forecasting. This would then enable data-driven decisions such as when to plant and harvest certain crops or when watering is needed, based on climate and weather forecasts. This use of satellite imagery and location intelligence can also be used to de-risk loans that finance essential cropping inputs.
Electricity and Utilities Industry Use Case
EO technology can be used to identify and select sites for infrastructure development when undertaking planning for clean energy development. It identifies optimal locations for clean energy assets (pumped hydro, solar, wind, transmission) through both historical and projected environmental impact measurements.
From a Vulnerability Analysis perspective EO can be used to forecasts severe-weather events that may impact the reliability and availability of electricity networks or lead to failures in critical infrastructure such as dams, allowing for mitigation strategies to be put into place.
Government, Public and Emergency Services Industry Use Case
EO can be used for post-event disaster response analysis and management. It can provides near real-time updates on changes (or damage) to structures, land and vegetation, allowing for a more cost-effective response.
From a Supply Chain Monitoring Perspective it can be used to monitor and enforce illicit activities. For example, it can monitor land use, water use and infrastructure changes over time using optical and radar data to detect illegal extraction (e.g. mining, fishing) and trafficking.
Insurance and Financial Services Industry Use Case
In the Insurance and Financial Services arena, EO can be used to verify sustainable supply chain claims. This can include monitoring of production and operations to verify sustainability metrics, such as ethical sourcing claims, which are tied to financial reporting requirements or energy transition investments. It can also be used to undertake investment analysis, because it enables objective and reproducible analyses to model and manage exposure of financial investments to environmental related risks.
Mining, Oil and Gas Industry Use Case
From a vulnerability perspective EO can be used to forecast weather. This improves long-term planning, which facilitates making changes to dates to minimize project delays, or so that mitigation efforts can be undertaken to minimise potential damages.
Supply Chain and Transport Industry Use Case
EO technology can be used for Route Optimisation, such as to reduce Traffic Congestion Monitoring. The technology monitors traffic conditions in real time and informs drivers of alternative routes. We see this through apps like Waze, or Google maps. It can also be used for shipping routes, in that it enables dynamic route planning through the near real-time monitoring of water depth, winds, waves, currents and sea ice conditions, allowing ships to shorten routes. Think Waze for Waves.
How Do We Unlock EO’s Potential
Whilst this technology can provide substantial benefits, extracting value from it requires collective action across Government, Private Sector, Civil Society and Academia.
Innovation with Open Standards
Since EO data has primarily been retained in the government sphere innovation in services and business models is key to expanding the reach of EO to new end users. This starts with raising awareness and granting access to EO data to researchers in Academia and start-ups in the private sector to explore new possibilities. Open standards, data and solutions can help bridge the gap, but require consistency to ensure interoperability and to maximise the value of geospatial data.
2. Continued Investment
Continued investment in technology is needed. New satellites and sensors have dramatically expanded the quality, coverage and range of EO data available. At the same time, advances in high-performance computing, cloud, edge processing and AI are helping unlock the rich insights buried in the vast quantity of EO data. Pushing the boundaries of these technologies is important to fuel innovative downstream applications, and investment from both the public and private sectors plays an important role.
3. Focus on Equity in Access
Based on modelled adoption rates, markets in the Global South – particularly in Africa – stand to realize the greatest percentage growth in the value of EO from 2023 to 2030. Accelerating uptake can have a real impact on economic growth and help tackle issues from water scarcity to food security. Ensuring equitable access.
4. Provide Solutions Not Pixels
There is an emphasis on value added services, rather than raw dats. Business model innovation is critical to getting EO insights into the right hands. According to Euroconsult, 37% of the $5.5 billion in cumulative funding raised in the EO industry between 2011 and 2022 flowed to value-added services, signalling the demand insights rather than data.
Conclusion
Earth Observation (EO) technology holds immense promise for tackling global challenges, offering critical insights across industries like agriculture, energy, and finance while advancing climate resilience and economic sustainability. To unlock its full potential, collaboration between governments, private enterprises, and academia is essential. This involves embracing open standards for data sharing, sustained investments in cutting-edge technology, and focusing on value-added services that turn complex EO data into actionable insights.
As the EO industry continues to grow, particularly in emerging markets, the emphasis must remain on equitable access and innovation. These steps will ensure EO’s potential is realized, driving meaningful change for people and the planet.
