RSS-Hydro explores the emerging market for space and satellite earth observation, emphasising its reduced costs, promotion of innovation, increased competition among startups, and improved data quality for reliable insights.
The new space and satellite earth observation (EO) market is witnessing unprecedented growth, driven by technological advancements, increasing demand for geospatial data, and the availability of public data sources and grants. This article delves into the advantages and disadvantages of building products and services on public data sources and publicly funded grants, focusing on the new space and satellite EO market.
Opportunities and benefits
Cost efficiency: A cornerstone of the new space economy
Public data sources are often freely accessible, significantly reducing the cost of acquiring high-quality geospatial data. This allows companies to allocate resources towards developing innovative products and services rather than investing heavily in data acquisition.
One of the most compelling advantages of leveraging public data sources in the new space and satellite earth observation market is the significant reduction in upfront costs. By utilising freely accessible datasets, companies can bypass the substantial expenses associated with acquiring and processing raw satellite imagery, for example. This cost efficiency allows businesses to allocate more resources towards:
- Research and development: Investing in innovative technologies and algorithms to extract valuable insights from the data rather than investing in the data itself.
- Product development and refinement: Focusing on building robust and user-friendly applications right from the outset.
- Market expansion: Targeting new customer segments and geographical regions. This is crucial for any business but requires time and expertise and can be costly.
- Talent acquisition: Hiring skilled professionals to drive growth and innovation. This forms the backbone of any serious business but takes time, cash reserves and planning.
Furthermore, public data sources often come with standardised formats and APIs, reducing the time and effort required for data integration and analysis. This streamlined approach accelerates product development cycles and enables faster time-to-market. Sometimes, the latter can feel like a race against time, so not having to deal with acquiring expensive data and all the investments that come with that can be a very decisive factor in competition.
By minimising the financial burden of data acquisition, companies can operate more efficiently and competitively, fostering a dynamic and innovative new space ecosystem.
Democratising access to space: The power of public data
Public data sources break down barriers to entry, enabling startups and smaller companies to compete with established players. This democratisation of access to (geospatial) data fosters innovation and accelerates the development of new applications.¹ Public data sources have played a pivotal role in democratising access to space-based data and technologies.
By making vast amounts of geospatial information freely available, these sources have empowered a diverse range of individuals and organisations to:
- Innovate: Entrepreneurs, researchers, and students can experiment with cutting-edge technologies and develop novel applications without significant financial barriers.
- Collaborate: Sharing and analysing public data fosters collaboration among scientists, engineers, and policymakers, accelerating scientific discovery and technological advancement.
- Citizen science: Individuals can contribute to scientific research and environmental monitoring by analysing and interpreting public data, which is now abundantly available and readily accessible.
- Social impact: Non-profit organisations and NGOs can use public data to address critical social and environmental challenges, such as climate change, disaster response, and sustainable development.
By lowering the barriers to entry, public data sources have spurred the growth of a vibrant and inclusive new space ecosystem. This democratisation of access has led to the emergence of innovative startups, the development of groundbreaking technologies, and a broader societal impact of space-based capabilities.
Ensuring data quality and consistency: The foundation of reliable insights
Public data sources are often subject to rigorous quality control and standardisation processes, ensuring high-quality and consistent data. This reliability is crucial for building robust and accurate products and services. Particularly, public data sources provided by government agencies and reputable scientific institutions are often subject to rigorous quality control measures.
By utilising high-quality public data, companies can build products and services that are more accurate, reliable, and robust. This enhanced data quality leads to the following:
- Improved decision-making: Data-driven insights can inform strategic decisions and optimise operational processes.
- Enhanced product performance: Accurate and consistent data can improve the performance of computer models and other data-intensive applications.
- Increased customer trust: By providing reliable and accurate information, companies can build trust with their customers.
In conclusion, public data sources provide a solid foundation for building innovative and impactful products and services in the new space and satellite earth observation market. By leveraging the benefits of cost efficiency, accessibility, and data quality, companies can unlock the full potential of space-based technologies and contribute towards a sustainable business future.
Fostering innovation through collaboration
Public data sources have the potential to catalyse collaboration and knowledge sharing among diverse stakeholders in the new space and satellite earth observation market. By providing a common platform for data access and analysis, these sources facilitate the following:
- Joint research ventures: Collaborative research projects between academia, industry, and government agencies can accelerate scientific discovery and technological advancement.
- Data sharing initiatives: Sharing data and insights can lead to the development of new applications and services that benefit society as a whole.²
- Open innovation: By encouraging open innovation, public data sources can foster the development of innovative solutions to complex challenges.
- Global partnerships: International collaborations can leverage complementary expertise and resources to address global issues such as climate change and natural disasters.
By promoting collaboration and knowledge sharing, public data sources can drive innovation, accelerate the development of new technologies, and create a more sustainable and equitable future.
Aligning with public good: A mission-driven approach
Building products and services on public data sources often aligns with societal goals and public good, such as environmental monitoring, disaster response, and sustainable development.³ This can attract investment and public support, fostering long-term sustainability. This mission-driven approach can lead to significant positive impacts, such as:
- Environmental monitoring: Analysing satellite imagery to track deforestation, pollution, and climate change.
- Disaster response: Using geospatial data to assess damage, coordinate relief efforts, and plan for future disasters.
- Sustainable agriculture: Applying satellite data to optimise crop yields, monitor soil health, and conserve water resources.
- Urban planning: Utilising satellite imagery to analyse urban growth patterns, identify infrastructure needs, and improve urban planning.
- Security and defence: Employing satellite data for intelligence gathering, surveillance, and border security.
By addressing critical societal challenges, companies that leverage public data can attract investment, gain public support, and contribute to a more sustainable and resilient future.
Challenges and drawbacks
Data limitations
Public data sources may have limitations in terms of spatial resolution, temporal frequency, and coverage. This can restrict the scope and accuracy of products and services built on these data sources.
While public data sources offer immense potential, they also have inherent limitations. These limitations can include insufficient spatial resolution and often limited temporal coverage. For instance, some datasets may have coarse spatial resolutions, making it difficult to analyse fine-scale features. Additionally, temporal coverage can be inconsistent, with gaps in data availability. It is crucial to carefully assess the limitations of public data sources and select datasets that align with the specific requirements of the application.
Data access and processing challenges
Accessing and processing large volumes of readily and freely available public data can be complex and time-consuming. Companies must invest in robust data infrastructure and processing capabilities to effectively utilise these data sources. Leveraging public data sources can be a powerful tool for driving innovation and addressing societal challenges. However, accessing and processing these vast datasets presents significant challenges, whilst for commercial data, these are typically addressed and handled (more) directly by the data provider:
- Data Format and Standards: Public data is often available in diverse formats, requiring careful cleaning, normalisation, and conversion. This can be particularly time-consuming and complex when dealing with large and heterogeneous datasets.
- Data Storage and Infrastructure: Storing and managing large volumes of public data necessitates substantial computational resources and storage capacity. Companies must invest in robust data infrastructure to handle the increasing scale and complexity of these datasets.
- Data Processing and Analysis: Extracting meaningful insights from public data often involves sophisticated data processing and analysis techniques. This requires specialised skills, advanced software tools, and significant computational power.
- Data Security and Privacy: Protecting sensitive data and ensuring compliance with privacy regulations is crucial. Companies must implement rigorous security measures to safeguard data and prevent unauthorised access.
To effectively address these challenges, organisations must invest in data management expertise, robust data infrastructure, and advanced analytics tools. By overcoming these hurdles, companies can unlock the full potential of public data and drive innovation in the new space and satellite earth observation market.
Intellectual property concerns
Building products and services solely on public data sources may limit the potential for intellectual property protection. Companies need to develop innovative algorithms, methodologies, or value-added services to differentiate their offerings and establish intellectual property rights. While public data itself is not typically subject to copyright, the value often lies in the innovative algorithms, methodologies, and value-added services developed to process and analyse the data. To protect their intellectual property, companies may need to:
- Develop proprietary algorithms: Creating unique algorithms and models to extract valuable insights from public data can help establish intellectual property rights.
- Obtain patents: Filing patents on novel inventions and methodologies can provide legal protection for innovative solutions.
- Secure trade secrets: Keeping proprietary algorithms and processes confidential can help maintain a competitive advantage.
- Establish strong partnerships: Collaborating with other organisations can help share resources, reduce costs, and pool intellectual property.
By carefully considering these factors, companies can protect their intellectual property and ensure the long-term sustainability of their business.Dependency on public funding
Reliance on public grants can create uncertainty in the long-term sustainability of a business. Grant funding cycles may vary, and for startups and small companies, the upfront cost typically associated with public grant contracting can be detrimental. There is also no guarantee of continued support, potentially impacting the company’s ability to invest in research and development and scale its operations.
To mitigate this risk, companies should strive to develop sustainable business models that generate revenue through the sale of products and services. This may involve diversifying revenue streams, seeking private investment, and/or building strategic partnerships. By establishing a solid financial foundation, companies can reduce their dependence on public funding and ensure their long-term viability.
Conclusion
Building products and services on public data sources and publicly funded grants offers significant advantages for companies operating in the new space and satellite EO market.
However, it is essential to carefully consider the limitations and challenges associated with these approaches. By effectively leveraging public data and navigating the complexities of grant funding, companies can indeed develop innovative and impactful solutions that address critical societal needs, but it can be a bittersweet process if not given careful consideration.
References
- T. Jetzek, M. Avital and N. Bjorn-Andersen, Data-Driven Innovation through Open Government Data. Journal of Theoretical and Applied Electronic Commerce Research, Volume 9, Issue 2, 2014, Pages 100-120, https://dx.doi.org/10.4067/S0718-18762014000200008
- L. J. Smith and C. Doldirina, Remote sensing: A case for moving space data towards the public good, Space Policy, Volume 24, Issue 1, 2008, Pages 22-32, https://doi.org/10.1016/j.spacepol.2007.12.002
- R. Harris and L. Miller, Earth observation and the public good, Space Policy, Volume 27, Issue 4, 2011, Pages 194-201, https://doi.org/10.1016/j.spacepol.2011.09.010
Please note, this article will also appear in the 21st edition of our quarterly publication.
