The European Union Agency for the Space Programme (EUSPA) has released its first EO and GNSS Market Report, where EO stands for Earth observation. The report is the result of a collaboration between 15 EUSPA experts from various fields and market research companies supporting EUSPA, backed by more than 50 external experts who helped validate the market trends and the data. In his foreword to the report, Rodrigo da Costa, EUSPA’s executive director, wrote: “Since its inception, the report has established itself as the most authoritative reference document for information on the global GNSS market. It is regularly referenced by policymakers and business leaders around the world.”
EUSPA’s EO and GNSS Market Report combines market and application data into one report that provides global coverage of EO and GNSS applications across 17 different market segments: agriculture; aviation and UAVs; biodiversity, ecoystems and natural capital; climate services; consumer solutions, tourism and health; emergency management and humanitarian aid; energy and raw materials; environmental monitoring; fisheries and aquaculture; forestry; infrastructure; insurance and finance; maritime and inland waterways; rail; road and automotive; space; urban development and cultural heritage.
GNSS receiver shipments will grow continuously in the next decade, from 1.8 bn units in 2021 to 2.5 bn units by 2031. (All images courtesy of EUSPA)
Growth dominated by consumer solutions
Between 2021 to 2031, yearly shipments of GNSS receivers are projected to grow from 1.8 billion units to 2.5 billion units. The shipments will be dominated by the consumer solutions, tourism and health segments as the global sales of smartphones and wearables continues to increase.
The overall installed base will increase from 6.5 bn units in 2021 to 10.6 bn units by 2031.
The global installed base of GNSS devices in use is expected to reach more than 10 billion units by 2031 — dominated by consumer solutions, tourism and health, and road and automotive market segments, which will contribute to 98% of all devices in use. The global GNSS downstream market revenues, which covers both device sales and service-related revenues, is expected to grow at a CAGR of 9.2% over the next decade, reaching €492 billion by 2031. More than 82% of the revenue will be generated by value-added services. Beyond the mass markets, the markets of agriculture, urban development and cultural heritage, and infrastructure will be the main contributors to the global GNSS revenue stream.
The Asia-Pacific region continues to be at the top of the GNSS revenue market both for device sales and service revenues based on demand. The region is expected to increase its share of the global services revenues, nearing 46% by 2031; however, it will see a decline of its market share of device revenues. The Asia-Pacific region will be challenged by the upcoming markets of South America and the Caribbean, Non-EU27 Europe, the Middle East, and African regions.
The GNSS market
The report defines the GNSS market as activities in which GNSS-based positioning, navigation and/or timing is a significant enabler for functionality. The GNSS market is comprised of device revenues, revenues derived from augmentation and added-value services attributable to GNSS.
The aviation and UAV market is expected to have significant growth, increasing from 42 m units in 2021 to 49 m units by 2031.
The global GNSS downstream market revenues from both device sales and services will grow from €199 bn in 2021 to €492 bn by 2031 with a CAGR of 9.2%. This growth is mainly generated through the revenues from added-value services.
Augmentation services include software products, digital maps and GNSS augmentation subscriptions. Added-value service revenues include data downloaded through cellular networks specifically to run location-based applications, the GNSS-attributable revenues of smartphone apps, subscription revenues from fleet management services, and UAV service revenues across a range of industries. For multi-function devices such as smartphones, the revenues include only the value of GNSS-functionality, not the full device price, so, a case-specific correction factor is used.
About the charts
Data on the charts presented in the report start from the year 2020 and are estimated, projected and subject to update in the next edition of EUSPA’s Market Report. Historical figures are actual numbers based on reliable sources, per EUSPA. These will change if the number of applications is expanded in future reports.
Source: EUSPA EO and GNSS Market Report ISSUE 1,
copyright EU Agency for the Space Programme, 2022