1. Industry & Research Networks Geoff Sawyer EARSC Secretary General ConnectinGEO: ENEON 1st Workshop: Observing Europe

2. EARSC @ ENEON workshop September 2015 EARSC is a trade association (non-profit Belgian company), founded in 1989, which represents European companies: offering and undertaking consulting and other services or supplying equipment / data in the field of remote sensing. Our mission is: to foster the development of the European Geo-Information Service Industry to 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 and RPAS operators. Today we have 76 members from 22 countries in the EU and beyond. What is EARSC?

3. EARSC @ ENEON workshop September 2015 Network 67 full members, 9 observers Members: any commercial company providing services (including consultancy) or supplying equipment in the field of remote sensing shall be eligible for full membership. based in a European country which contributes to the European Space Agency or which is a member of the European Union Observer: any organisation engaged in the supply or use of Remote Sensing which does not qualify to become a full member of the Association

4. EARSC @ ENEON workshop September 2015 Provide information to our members on programmes, policy and the sector; (business intelligence) Maintain a knowledge of the industry, i.e. statistics, market information, etc. Promote professional standards within the industry Promote the industry and its capabilities by: Creating links between EO services sector and other business sectors, e.g. oil & gas, insurance, public institutions e.g. the World Bank Organising events offering networking opportunities as well as focused information Advocacy towards policy makers on issues of concern Awareness and media. e.g. eomag What does EARSC do? EARSC focus is on enabling the development of new business

5. EARSC @ ENEON workshop September 2015 EARSC meeting with ESA DG – 5 th October 2015 Strategic Context - US Many changes taking place in the market: US lifts ITAR restrictions to allow sale of DigitalGlobe imagery down to 25cm resolution. Start-ups with new business models entering the market; Skybox Imaging, Planet Labs, Urthecast, Spire, Satelogic etc….. and offering high resolution images/videos. Some consolidation starting amongst the operators: Google acquires Skybox Imaging Planet Labs acquires Blackbridge Urthecast acquires Deimos Imaging Google, ESRI, Amazon developing offers of geospatial services.

6. EARSC @ ENEON workshop September 2015 EARSC meeting with ESA DG – 5 th October 2015 Number of EO Service Companies in Europe and Canada 389 451 196

7. EARSC @ ENEON workshop September 2015 EARSC meeting with ESA DG – 5 th October 2015 Current Situation- Europe Sector is dominated by micro (<10 employees) and small (<50 employees) companies

8. EARSC @ ENEON workshop September 2015 EARSC meeting with ESA DG – 5 th October 2015 Geographical distribution Companies are distributed throughout europe with 10 countries having 20 or more companies This is a strength to serve local needs but is not a good position from which to address the global market

9. EARSC @ ENEON workshop September 2015 EARSC meeting with ESA DG – 5 th October 2015 Industry Employment Profile Number of employees has grown from 3000 in 2006 to nearly 7000 in 2014 8 year growth rate of 10.8% p.a. (cagr) 2012:2014 = 7.2% Large and medium companies employee 47% of the workforce 6811 5928 3149

10. EARSC @ ENEON workshop September 2015 EARSC meeting with ESA DG – 5 th October 2015 Industry Revenue Profile €419m €786m €911m Total revenue has grown from €419m in 2006 to €911m in 2014 8 year growth rate of 11.8% p.a. (cagr) 2012:2014 = 7.6% Large and medium companies account for 60% of revenues.

11. EARSC @ ENEON workshop September 2015 EARSC meeting with ESA DG – 5 th October 2015 Percentage Revenues by Activity European Companies are active throughout the value chain Data selling activities represent a 29% share of the market at €270m. This represents a growth of 5% since 2012 The information services part of the business represents 51% of the market or €462m. This represents a growth of 72% since 2012 (31% per annum).

12. EARSC @ ENEON workshop September 2015 EARSC meeting with ESA DG – 5 th October 2015 Types of Customer 50% of revenues are coming from public sector operational customers at different levels (plus 15% R&D). Around 4% comes from International organisations. Around 30% of revenues is coming from sales to other industrial customers. This shows an aggregate picture of 2012 & 2014 as a few large contracts are changing the year-to-year picture quite significantly.

13. EARSC @ ENEON workshop September 2015 EARSC meeting with ESA DG – 5 th October 2015 In Summary European industry is present in all sectors of the market but is extremely fragmented with a strong dominance of micro and small companies. US (DigitalGlobe) presently lead the very high resolution market as a result of ITAR changes and the anchor tenancy contract. There is a strong growth in the number of US satellite operators mostly with new, disruptive business models and backed by “new” money. Recently, 2 of the new US companies have acquired the 2 independent European operators. US IT platforms eg Google, Amazon, ESRI are increasing their offer for geospatial services. A European infrastructure can provide the tool to allow service providers to improve their offer both in Europe and to address the growing global market.

14. EARSC @ ENEON workshop September 2015 “ConnectinGEO’s primary goal is to link existing coordinated Earth observation networks with  science and technology (S&T) communities,  the industry sector and  the GEOSS and Copernicus stakeholders” Industry linking through ENEON:  Networking of the stakeholders to develop better understanding  Focused R&D actions with a strong industrial interest  Development of a Marketplace to promote and do business European Industry can benefit from ENEON Sustainability is key! ConnectinGEO & ENEON

15. EARSC @ ENEON workshop September 2015 Why Industry and ENEON? ENEON will stimulate a more harmonized and coherent coverage of the (European) (EO) networks will help companies identify where to invest (avoid duplication and multiplication efforts) will enable industry to focus its R&D activities. will create opportunities to commercialise research results INDUSTRY will bring sector engagement as suppliers and users of data & information will provide innovative approaches to commercialise EU R&D actions and develop business will act as a bridge to other industrial sectors (energy, agriculture, transportation,..) EARSC objective: to bring the industry network represented by EARSC into contact with the R&D community with the goal to commercialise results.

16. EARSC @ ENEON workshop September 2015 Agreement and alignment with the research networks and stakeholders:  Focus on Services - with a pan-European or global dimension require a strong collaboration amongst all players irrespective of national boundaries and interests.  Coming together of industry, academia and public sector bodies into R&D teams and consortia: mix of skills, knowledge, data and competences will be an essential contribution to deliver first class geo- services.  GEOSS is stimulating significant R&D activities which can be used to help meet European goals (science and business)  There is a need to find ways to test industry interest to take on and commercialise these R&D products. Industry networks coordination with EO Networks

17. EARSC @ ENEON workshop September 2015 Growing the Market: Develop the uptake of services into the public sector as well as commercial and export markets. Collaborate and connect with ENEON networks: Harness EU R&D actions in the context of GEOSS (DG-RTD) to support the European industry (Science and Business) Develop a Marketplace Overcome fragmentation while maintaining diversity (supply & demand) Provide common/easy access to data/information for all users Move public sector from defining solutions in favor of defining information needs A Marketplace for EO services

18. EARSC @ ENEON workshop September 2015 Improve communication exchange on what the members of ENEON can offer (and gain from working together):  meetings in suitable locations and planned with collaboration in mind  respecting the rules and modalities of the very different sector needs  suitable governance structure  common language!  Culture and common goals (science and business)  The European way – preservation of individual values How can industry engage with ENEON?

19. EARSC @ ENEON workshop September 2015 ConnectinGEO has the goal to identify gaps: the biggest gap is between Research and Industry ENEON can help fill that gap

20. EARSC @ ENEON workshop September 2015 For Information on EARSC: www.earsc.eu / www.eomag.eu / secretariat@earsc.org For more information on the remote sensing industry: www.eopages.eu For information on EO applications: www.earsc-portal.eu For links to the O&G Community www.ogeo-portal.eu For more Information

21. EARSC @ ENEON workshop September 2015 Industry profile 63% = Proportion of companies with less than 10 EO employees: 96% with less than 50 employees 451 companies in Europe 6811 direct employees €910m revenue Total Industry Revenue in 2014 Total Industry Employment in 2014