Earth Observation

Earth observation (EO) is the gathering of information about the Earth’s surface, atmosphere, and oceans, primarily through remote-sensing satellites. In the space economy it is a downstream segment: the satellites are the asset, but the product is information, sold as imagery, monitoring, and analytics to governments, agriculture, insurance, defense, and mapping customers.

What is Earth observation?

Earth observation covers every technique for measuring the planet from above: optical imaging, synthetic-aperture radar that sees through clouds and darkness, infrared sensing, and atmospheric sounding. The defining economics are those of a data business layered on a space asset. A fleet is expensive to build and launch, but once in orbit each additional image costs little, so EO companies sell subscriptions and analytics rather than hardware. Public programs form the base layer of the market. The largest is Copernicus, the European Union’s flagship program, which distributes its data without charge:

“Copernicus is the Earth observation component of the European Union’s Space programme, looking at our planet and its environment to benefit all European citizens. The information services provided are free and openly accessible to users.”

— European Commission, Copernicus programme (Copernicus)

Commercial operators compete above that free baseline on revisit frequency, resolution, and analytics. Planet Labs photographs the Earth’s entire landmass at high cadence and sells access on subscription; it grew its backlog about 79% to over $900 million in fiscal 2026 and guided FY2027 revenue to $415 to 440 million (Planet Labs). MDA Space sells geointelligence built on the RADARSAT radar heritage, with Q1 2026 segment revenue of C$59.4 million (MDA Space).

How is Earth observation used in thematic investing?

EO is one of the recurring-revenue layers inside space themes such as Global Space Technology and U.S. Space Tech. Where launch companies sell missions and satellite manufacturers sell hardware, EO companies sell information on contract, which makes their revenue more software-like: roughly 85% of Planet’s revenue came from annual or multi-year contracts at the end of fiscal 2026 (Planet Labs). Demand is also broadening beyond defense into agriculture, insurance, and climate monitoring, part of the reason the World Economic Forum and McKinsey project the space economy roughly tripling to $1.8 trillion by 2035 (World Economic Forum). Within the Global Space Technology basket, Planet Labs, MDA Space, BlackSky, Spire Global, and Viridien all monetize the EO layer.

Related terms & concepts

FAQ

What is Earth observation in the space economy?

Earth observation is the business of collecting data about the planet from orbit and selling the resulting imagery, monitoring, and analytics. It sits in the downstream segment of the space economy: the satellites are the asset, but the product is information, sold on subscription to governments, agriculture, insurance, defense, and mapping customers.

Which listed companies sell Earth observation data?

Planet Labs (PL) operates one of the largest imaging fleets and grew its backlog about 79% to over $900 million in fiscal 2026 (Planet Labs). MDA Space (MDA) sells geointelligence services built on radar-satellite expertise, with Q1 2026 segment revenue of C$59.4 million (MDA Space). BlackSky, Spire Global, and Viridien also operate in the segment.

Why does Earth observation demand keep growing?

Because more decisions are priced on planetary data: crop yields, supply chains, insurance claims, climate disclosure, and military intelligence. Public programs anchor the market, led by the EU's Copernicus, which provides free and open EO data (Copernicus), while commercial fleets sell higher-cadence imagery and analytics on top.

Sources & references

  1. About Copernicus · European Commission (Copernicus, the EU Space Programme), 2026-01-01
  2. Planet Reports Financial Results for Fourth Quarter and Full Fiscal Year 2026 · Planet Labs PBC / Business Wire, 2026-03-19
  3. MDA Space Reports First Quarter 2026 Results · MDA Space Ltd., 2026-05-07
  4. Space: The $1.8 Trillion Opportunity for Global Economic Growth · World Economic Forum, 2024-04-08