Developing!EO!Services! Markets The!Importance!of!Data!Policy. Geoff!Sawyer!,!EARSC!Secretary! General

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1 Developing!EO!Services! Markets The!Importance!of!Data!Policy Geoff!Sawyer!,!EARSC!Secretary! General

2 What is EARSC? EARSC is a trade association (NGO), founded in 1989, which represents companies: offering and undertaking consulting and other services or supplying equipment in the field of remote sensing. Our mission is o to foster the development of the European Geo-Information Service Industry We represent European geo-information providers creating a sustainable network between industry, decision makers and users Our focus is on remote sensing from space-based platforms (satellites) but we also have members which are aircraft operators.

3 What does EARSC do? o Provide information to our members on programmes, policy and the sector; (business intelligence) o Maintain a knowledge of the industry ie statistics etc. o Promote the industry and it s capabilities by: o Creating links between EO services sector and other business sectors eg oil & gas, insurance as well as public institutions e.g world bank o Organising events offering networking opportunities as well as focused information o Promote professional standards within the industry (help the sector to develop)

4 Market Development ESA / EARSC Initiatives. OGEO Link with Oil & Gas Industry eopages Brokerage site for the EO services Industry EOINS Link with Insurance Industry eoworld Links to the World Bank and other IFI s

5 European EO Services Industry Offers a full range of services based on extensive experience serving government, industry and the citizen Includes data providers, downstream service providers, software and consultancy companies with a mastery of space-borne/airborne/in-situ systems and sensors technologies. Innovative / dynamic; many new companies, changing ownership Over 300 companies largely SME s with: strong partnership experience across European borders. a highly skilled workforce; interchange with other sectors Full industry survey is being made by EARSC to be published mid-2013

6 EO Service Companies in EU and Canada less than 5% of companies have more than 50 employees Over 60% have less than 10 employees. Numbers growing at around 8%pa.

7 Customers for EO Companies Over 50% of revenues are from public sector customers Around 4% comes from International organisations. Commercial sales represent single largest segment.

8 EO companies use of PSI data. PSI = Public Sector Information Over 12% of the sector revenues are based on PSI free data sources Increasing importance for small and micro companies

9 Copernicus Opportunity for Europe Major European programme that will offer sustained operational data for Global Monitoring for Environment & Security. Offers a particular form of PSI comprising EO data and information. Other types of PSI (meteo, cartography, cadastral,) show good potential for re-use and can generate good economic benefits Re-use grows hugely (100-fold in some cases) PSB loses income but generally a small proportion of its total (more than 50% of the PSB s make less than 5% of their revenue from sales) PSB sees efficiency savings. New business growth is high (100 to 400%) Net employment increases (+300% at Dutch KNMI, +800% at Danish DECA) Tax revenue increases

10 An Economic Model of PSI Re-use Phase 1 Sowing Phase 2 Growing Phase 3 Harvesting Benefits private sector Demand effect re-users Business effect reusers Market dynamism effect Employment effect Welfare effect Non-economic benefits Additional tax incomes Income Treasury 0 Time Costs incurred in Euros Income effect PSB Efficiency effect PSB Taxation effect Costs/missed revenues public sector

11 Examples from the EO Domain? Landsat is by far the best example Following years of policy changes, it demonstrates very clear and very strong interest in re-use after the data became freely available in Period and change: 1972 to 1982: US Government ownership. Images at $200 per scene Early 80 s to mid 90 s: Commercial ownership EOSAT. Data up to $4400 per scene under cost recovery model. Dramatic drop in sales. 1992; Land Remote Sensing Policy act moves pricing to marginal cost (underpinned by the Paperwork Reduction act of 1995 sic!) 1999 to 2008: US government ownership, USGS under policy control of NOAA. Marginal costs have fallen and images are available at $600 per scene Internet distribution introduced and marginal distribution cost falls to zero, usage (downloads) has exploded.

12

13 Some Implications of a FODP Risks to Private Operators? Commercial operators have invested in satellite systems offering high or very high resolution data Impact on their business models must be taken into account. PSI for Global or European Re-use? GMES sentinel data is inherently global in nature, should it be freely available outside of Europe? It is a political decision - but free data is the best way to develop the market everywhere. In consequence, European companies need to be supported in developing export business. Are the business models fixed? Private investment requires stability. The role of PSB s is fluid and if they change there is a risk of undermining private investment decisions.

14 A Study on the Economic Benefits of a Free and Open Data Policy for GMES Sentinels ABOUT!GMES!AND!DATA!:!GEESE!AND!GOLDEN!EGGS Geoff!Sawyer!&!Marc!de!Vries Study!sponsored!by!ESA!

15 About GMES and Data : Geese and Golden Eggs Which!will!it!be?

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