Market Trends of Middle East Satellite Imagery Services Industry
Increasing Adoption of Location-based Services
- Location-based services rely significantly on geospatial data, which involves information about specific geographic locations. Satellite imagery services deliver high-resolution as well as up-to-date images of these locations, thereby forming a fundamental layer of geospatial data. Location-based services also include navigation and mapping applications. Satellite imagery is thus extremely essential for building detailed and accurate maps. Hence, by offering visual context in navigation apps, it helps the users see real-world landmarks and terrain, which further helps them navigate more effectively.
- Satellite imagery plays a vital role in smartphone applications as well as mapping applications. It delivers detailed and up-to-date maps, allowing users to locate businesses, find directions, and explore unknown areas efficiently. Many smartphone features and apps, such as maps, navigation, and location-based notifications, heavily rely on satellite imagery to deliver users with accurate and context-aware information. This enhances the overall usefulness and experience of these services.
- In March 2023, Comtech announced that it was awarded a substantial contract worth approximately USD 29 million by Al Yah Satellite Communications Company PJSC (Yahsat), the leading satellite solutions provider in the United Arab Emirates. The contract pertains to the provision of cutting-edge communication technologies and location services, primarily for operation on Yahsat's Thuraya 4-NGS satellite constellation.
- Within the scope of this agreement, Comtech is tasked with the development, design, integration, installation, and testing of communication and location-based technologies for Yahsat's Location Tracking Services Platform and User Terminals. These comprehensive solutions from Comtech are geared towards facilitating seamless communication and advanced location-based services for Yahsat's network end users.
- Smartphones providing constant connectivity to the internet enable users to access location-based services with the help of built-in GPS, and smartphones can offer precise location, enabling them to leverage various location-based applications. Moreover, smartphones can be significantly utilized to facilitate targeted advertising based on the user's location.
- According to Ericsson, the total number of smartphone subscriptions within the Middle East and North Africa is anticipated to reach around 797 million by 2028. As of 2022, there were around 559 million smartphone subscriptions within the Middle East and North Africa. With such a significant rise in the overall number of smartphone subscriptions in the Middle East region, it is expected to amplify the growth opportunities throughout the forecast period.
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UAE is Expected to Hold Significant Market Share
- The UAE government has taken various significant proactive measures mainly to develop its space industry, recognizing the immense potential of space technology as well as Earth observation capabilities. These initiatives have positioned the entire country as a vital player in the global satellite imagery services market, thereby fueling advancements in data analytics, satellite technology, and remote sensing applications.
- The UAE government established the Mohammed bin Rashid Space Centre (MBRSC) and the UAE Space Agency to spearhead space-related activities. These specialized entities play a pivotal role in operating, developing, and promoting satellite imagery services for commercial as well as governmental purposes. Moreover, the UAE cabinet approved the National Space Strategy 2030, which involves 79 space science and research projects, assembly, manufacturing, testing, and various commercial space services.
- The UAE's prime vision for smart cities also necessitates various significant advanced technologies and data-driven solutions. Satellite imagery services deliver valuable insights into various aspects of smart city implementation, such as traffic management, energy consumption, waste management, and environmental monitoring. Satellite data also allows the integration of smart technologies as well as the seamless functioning of interconnected urban systems, thereby guaranteeing efficient resource management.
- Furthermore, major companies are actively pursuing mergers with other enterprises and investing in new projects to expand their customer base and better address diverse applications. For instance, in September 2023, Bayanat joined forces with HySpecIQ and AzurX to primarily enable hyperspectral imaging and analysis in the United Arab Emirates. This partnership was formally established through a Memorandum of Understanding (MOU) signed by key figures, including Hasan Al Hosani, Managing Director of Bayanat, Bill Sullivan, Chairman of HySpecIQ, and Anna Hazlett, CEO of AzurX. This collaborative effort is set to enhance and accelerate the development of space expertise in the UAE and the broader region.
- Also, in May 2023, Planet Labs PBC, a provider of daily insights and data about Earth, partnered with the United Arab Emirates Space Agency to create a regional satellite data-driven loss and damage atlas, especially for climate change resilience. The initiative mainly aims to deliver data to a select country facing greater degrees of climate risk to assist in building resilience, making informed policy decisions, and stimulating financial programs for climate mitigation and adaptation purposes.
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