Defense demand for sovereign Earth observation capabilities will help drive $155.9 billion in satellite manufacturing revenues
Paris, France | August 2026– More than 6,500 Earth observation (EO) satellites are expected to launch by 2035, generating $155.9 billion in manufacturing revenues as governments expand sovereign intelligence, surveillance, and reconnaissance (ISR) capabilities, according to the latest edition of Novaspace’s Earth Observation Satellite Systems report.
“The rules of the game are changing,” said Federico Banfi, Consultant at Novaspace. “Defense users increasingly require sovereign access to Earth observation capabilities, while commercial operators are becoming essential partners in delivering them. This shift is reshaping constellation architectures, sensor strategies, and the broader EO market.”
Historically, EO performance was largely defined by image resolution. Today, defense users are placing greater emphasis on revisit rates, persistence, and wide-area coverage to support continuous monitoring and faster decision-making. This is driving demand for larger constellations and more diverse sensor architectures.
The shift is also accelerating the adoption of multi-sensor constellations combining synthetic aperture radar (SAR), optical, and radio frequency (RF) payloads. By integrating complementary intelligence sources, operators can provide more resilient and comprehensive Earth observation capabilities while meeting increasingly demanding defense requirements.
The rise of the “Skyscraper Model” is also well underway, where satellite buses become increasingly standardized with value shifting toward the integration of advanced payloads and multiple intelligence layers.
As EO constellations grow in scale and complexity, demand for interoperability, federation, and fleet management is increasing. These trends are accelerating the convergence of commercial and defense markets and positioning sovereign Earth observation capabilities as a key driver of market growth through 2035.
About the Report
Novaspace’s Earth Observation Satellite Systems report provides a global assessment of the Earth observation space systems market, covering commercial, civil government, and unclassified defense satellites.
The report analyzes supply and demand for EO satellites launched over the previous decade and expected to launch through 2035, with a focus on the evolution of satellite manufacturing and launch markets.
The accompanying database includes satellites launched and expected to launch through 2035, with details including operator, manufacturer, mass, mission, sensor type, resolution, and other key characteristics.