The global Earth Observation (EO) market is on track to exceed $8 billion in valuation by 2033 from $5 billion currently, according to a new report from Novaspace, the merger of Euroconsult and SpaceTec Partners.

The rapid growth is largely attributed to the surge in large-scale defense contracts and increasing availability of high-resolution imaging and 3D capabilities, which are enhancing the scope and quality of Earth monitoring, the report said.

EO technology, which provides critical data for industries ranging from agriculture to environmental monitoring and defense, is one of the most lucrative sectors in the commercialization of space technology.

North America remains the dominant player in the market, contributing 44% of global revenue in 2023. Europe follows with a 22% share, Novaspace said.

However, the most significant growth is expected to come from Asia, according to the report.

The region is projected to account for 23% of the global EO market by 2033, spurred by emerging procurement policies, increasing investments in space infrastructure and growing demand from Southeast Asia and the Middle East.

It did not say how much the region contributed last year.

Countries across the world are starting to invest more in EO technologies to better monitor everything from vegetation and climate change to their borders.

India, for example, is leaning into this sector to win the global space commercialisation race, while Canada said last year it will invest C$1.01 billion ($741 million) over the next 15 years in satellite technology to boost the data it uses to track wildfires and other environmental crises.

“Market growth isn't just about replacing aerial geolocation systems,” said Alexis Conte, lead author of the report.

“It’s about scaling up EO monitoring capabilities to provide actionable insights over time. This focus on tracking and analyzing activities at scale is driving both technological and market innovations.”