9
2. ACTIVITIES OF THE EUROPEAN COMMISSION IN EARTH
OBSERVATION
1.2
An uncertain future
Nevertheless, despite its past successes and clear future potential, the
European EO capability is fragile.
A long period of application development and demonstration has been
sustained by publicly subsidized space and ground infrastructures. Most
European governments now envisage a shrinking of this subsidy, and instead
foresee the introduction of private capital into the funding of new missions.
However, the customer base for EO, both public and private sector, remains
dispersed and underdeveloped. Many potential users
2 are unaware of the
possibilities of this data source. Others are deterred by the lack of long-term
continuity in data supply caused by the absence of an operational
framework. The weak customer-demand deters industry from making the
major investments necessary to initiate private space ventures, and financial
institutions will not risk loans whilst the commercial viability of EO is
considered unproven.
Meanwhile, Europe faces intense and increasing international
competition. Private operators in the US are on the verge of providing
potentially lucrative end-to-end commercial services based on data from
very high-resolution optical systems. Europe is still a leader in Synthetic
Aperture Radar (SAR) technology, but Canada is rapidly gaining experience
in commercial SAR, and NASA is working with the private sector to
promote a lightweight mission using advanced radar technology. Although
not yet so clearly market-driven, operators from Russia, India, China and
Brazil will play an increasingly active role in the global arena.
Decisive action is needed to capitalize on the past investments in EO, to
ensure that the social, economic and strategic benefits accrue to Europe in
the coming decade, and, in so doing, to create a European industrial sector
competitive in world markets.
1.3
The way ahead
The main market for EO will continue to be the public sector, stemming
from requirements arising from scientific programs and from the demand for
information in public policy implementation.
The challenge over the coming decade will be to change the role of
government from that of source of subsidy, to that of customer. This will
create a climate of ’user-pull’, allowing industry increasingly to finance and
deploy services meeting real demand, taking account of tradeoffs between
2 The term ’user’ refers here to any person or body deriving value from information obtained
from EO for a given application.
2. ACTIVITIES OF THE EUROPEAN COMMISSION IN EARTH
OBSERVATION
1.2
An uncertain future
Nevertheless, despite its past successes and clear future potential, the
European EO capability is fragile.
A long period of application development and demonstration has been
sustained by publicly subsidized space and ground infrastructures. Most
European governments now envisage a shrinking of this subsidy, and instead
foresee the introduction of private capital into the funding of new missions.
However, the customer base for EO, both public and private sector, remains
dispersed and underdeveloped. Many potential users
2 are unaware of the
possibilities of this data source. Others are deterred by the lack of long-term
continuity in data supply caused by the absence of an operational
framework. The weak customer-demand deters industry from making the
major investments necessary to initiate private space ventures, and financial
institutions will not risk loans whilst the commercial viability of EO is
considered unproven.
Meanwhile, Europe faces intense and increasing international
competition. Private operators in the US are on the verge of providing
potentially lucrative end-to-end commercial services based on data from
very high-resolution optical systems. Europe is still a leader in Synthetic
Aperture Radar (SAR) technology, but Canada is rapidly gaining experience
in commercial SAR, and NASA is working with the private sector to
promote a lightweight mission using advanced radar technology. Although
not yet so clearly market-driven, operators from Russia, India, China and
Brazil will play an increasingly active role in the global arena.
Decisive action is needed to capitalize on the past investments in EO, to
ensure that the social, economic and strategic benefits accrue to Europe in
the coming decade, and, in so doing, to create a European industrial sector
competitive in world markets.
1.3
The way ahead
The main market for EO will continue to be the public sector, stemming
from requirements arising from scientific programs and from the demand for
information in public policy implementation.
The challenge over the coming decade will be to change the role of
government from that of source of subsidy, to that of customer. This will
create a climate of ’user-pull’, allowing industry increasingly to finance and
deploy services meeting real demand, taking account of tradeoffs between
2 The term ’user’ refers here to any person or body deriving value from information obtained
from EO for a given application.