# Presentation: 821021

## The 10-Year Remote Sensing Industry Analysis

**ACCRES Highlights, January 14,2003**
**Charles Mondello, Pictometry, ASPRS Forecast Co-Chair **

## Agenda

**Forecast background**
**Executive summary of results**
**Key issues noted during phases 1-2**
**Develop policy analysis support material**

## In August 1999, ASPRS and NASA's entered into a 5-year Space Act Agreement (SAA) to: 
  Baseline the Remote Sensing Industry (RSI)
  Develop a 10-Year RSI market forecast and attendant processes
  Provide improved information for decision makers

Deliver an analysis of the industry, collected by the industry and analyzed by representatives within the industry

In 2002 ASPRS partnered with NOAA for the documentation of the forecast results

**  ****Baseline the Remote Sensing Industry (RSI)**
**  ****Develop a 10-Year RSI market forecast and attendant processes**
**  ****Provide improved information for decision makers**
**Deliver an analysis of the industry, collected by the industry and analyzed by representatives within the industry**
**In 2002 ASPRS partnered with NOAA for the documentation of the forecast results**

**Background**

## The Plan

**Phase I****	****Characterization and Baseline Forecast ****	****	****	****of the U.S. RSI (Dec 2000)**
**Phase II****  ****	****Characterization of Customers/Users and Their ****	****	****Requirements (Jan 2002)**
**Phase III****	****Validate I and II (Dec 2003) ****	****	****	**** ****	****Technology Assessment****	****	**
**Phase IV****	****Market Forecast  (Dec 2004)**

## Remote Sensing Industry

**Platforms & Sensors**

**End-User**

**Data**
**Collection**

**Data Processing**

** ****Hardware**
** ****Software**
** ****Etc.**

**Industry**
**Intermediaries**

**Support**
**Elements**

-  **VARs**
** ****Consultants**
** ****Etc**.

**Business Segments**

**Phase 1**

**Phase 2**

**Study Phase**

## Forecast Process 

**ANALYSIS**

- Literature
- Search

- Internet / Closed  Envelope
- Survey

## 2002 Baseline Forecast

**Assume best insight comes from CEOs/CFOs and use their Expected Revenues **
** ****and build revised baseline 2002 accordingly**

**Approach:**
**Average 2001 and 2002 CEO/CFO Expected Revenue estimates.  Use to plot 2001-2006**
**Apply AAGR associated with those estimates to forecast 2007-2112 **

**The 2001 and 2002 Base line were developed from independent annual surveys **
**The projected growth of the industry appears to be between 9-14 percent per annum**
**The effects of September 11 on this growth will be further assessed during phase 3 of the forecast**

## Commercial Company Size 

** ****This is a fragmented Industry**
**Smaller Companies are in the Majority **
**Smaller firms in general are focused on unique market segments and value added products**
** ****Data policies applied to larger firms will affect smaller companies who have greater revenue susceptibility**

**Commercial Company Size **

**Average (Median) Annual Revenue: $3.7M in CY2001**

## % of Revenues by Market Segment 2000& 2001

**Based on Responses of  >40**** ****CEOs/CFOs( 20% of “Core Companies”)**
**The policies set on the broad industry may affect the sub segments to different levels**
**More effective communication of remote sensing benefits in low use market segments may stimulate growth? ( a phase 3 study area )**

**0**

**5**

**10**

**15**

**20**

**25**

**30**

**35**

**40**

**45**

**National/Global Scty**

**Civil Government**

**Mapping**

**Utilities**

**Transportation**

**Environment**

**Telecomms**

**Agriculture**

**Forestry**

**Exploration/Resources**

**Real Estate**

**Entertainment/Media**

**Insurance**

**% of Revenues**

**2001 % of Revenues**

**2000 % of Revenues**

## Commercial Sector Interview Findings*

-    Speed availability of information
-    Provide information valued by user
-    Develop system of systems that integrate/merge applications,     and provide multi-disciplinary solutions
-    Lower costs
-    **Governmental Influence is pervasive...**
-    Legislation and policies restricting U.S. company foreign sales;
-      but do not hinder foreign companies
-    Government should not compete with the private sector
-    Government predominant purchaser of data
-    Mergers with foreign companies are problematic
-    Standardization
-    Data Distribution
-   **Lack of Customer/Potential Customer Knowledge re: potential of RS/GIS  **
**      ****products to enhance decision making and the bottom line may be**
**      ****inhibiting Market Growth **
-   Applications based Marketing and Demonstrations may help

**Commercial Sector Interview Findings***

*** Commercial Sector findings only ( internet, focus group, surveys and sealed envelopes )**

## Commercial Sector Interview Findings*       

**Workforce education **
-   Demand for entry-level persons exceed supply
-   How many students do we train and retain?  (foreign students train in US, return home)
** **
**Competition**
-  The international playing field is not level.
-  U.S. Companies are not "part of the Government" as are foreign competitors
-  Foreign competitors’ workforces train in U.S.
-  Smaller companies have trouble "staying in the game” due to investment
-    costs
-  Aerial and Satellite markets are both growing; competition continues, but satellite has not replaced airborne data collection; satellite and airborne markets even enhance each other in some cases
**  **
**The State of the US Economy heavily impacts on the U.S. remote sensing industry**
-  Majority of RSI companies are small and very sensitive to economic fluctuations
-  The government consumption of data is a major influence on the industry
-  State and local government spending on data creates further impacts

*** Commercial Sector findings only ( internet, focus group, surveys and sealed envelopes )**

## Spatial Resolution: Use vs. Needs (All Sectors)

**  ****The major shortfall in data is toward better resolution**
**  ****The policy trend to higher resolution fits industry need**

**Based on Phase II 2209 Survey Use Responses and 1646 Need responses**

**More than 50% of the Needs across the sectors are for Spatial Resolutions less than a meter.**

## Geo-location Accuracy Use Vs. Needs: All Sectors

**Geo-location Accuracy Use Vs. Needs: All Sectors**

**Systems providing or operating with higher quality positioning, calibration and DEMs will become a driving force in data use**

**Based on Phase II 1501 Survey Use responses and 1153 Need responses**

## Elevation Accuracy: Use vs. Need (All Sectors) 

**  ****Higher quality elevation data is core to industry growth**
**  ****60% of the need is at elevation accuracies of better than 3 feet **

**Based on Phase II 1050 Survey Use responses and 968 Need responses**

## Need for Image Types: 2001 vs. 2006 (All Sectors)

**The industry is fragmented due to sensor technology as well as firm size and market segment**
**Sensor combination further diversifies the mix**

**Based on Phase II 2796 (Year 2001) Survey Responses and 2948 (Year 2006) responses**

## Selected Analysis Participants

**Analysis by the Industry **
**For the Industry**

**(Not by an outside agent for profit)**