Following the success of Starlink in the satellite communications market, companies in the Earth observation sector are closely watching SpaceX's development of a related system called Starshield.
Executives from various Earth observation companies shared their perspectives during a panel discussion at World Space Business Week in Paris, with some highlighting competitive concerns and others identifying potential opportunities for partnerships.
SpaceX unveiled the Starshield program in late 2022, positioning it as a variant of its Starlink satellites specifically tailored for national security applications. The company has indicated that Starshield will include Earth observation capabilities alongside communications and hosted payloads.
“Starshield launches satellites with sensing payloads and delivers processed data directly to the user,” SpaceX states on its website. However, the company has shared limited details regarding Starshield's functionalities.
Despite the scarcity of public information, satellite Earth observation companies are actively monitoring Starshield's development. “We take it very seriously,” said Eric Even, head of Space Digital at Airbus Defence and Space. “We did not need proof that it is very serious. We saw that with Starlink.”
While Starshield is designed for national security purposes, it poses a concern for an industry where defense customers account for two-thirds of the $6.6 billion revenue generated in 2023, according to data from Novaspace presented at the conference.
“The geospatial industry has always been very competitive,” Even said, acknowledging Starshield as the latest competitor that companies must adapt to. “We continue to work on all the elements of the value chain so that the service always becomes better the final customers, whomever they are.”
Paolo Minciacchi, senior vice president of Telespazio, expressed even greater concern. “The real problem is that we are facing a situation where we have an entrepreneur who has a lot of money, more than a state, so can do very huge investments, and has the support of the U.S.A. government,” he said. “No single company can manage a competitive situation like that one.”
Minciacchi urged other nations, particularly in Europe, to maintain their sovereign systems despite the emergence of Starshield. “We strongly need the support by our countries,” he emphasized, including financial backing. “Because, without that, it’s impossible to compete with operators that can invest billions of euros in a very short time with the support of the U.S.A. government.”
Others, however, saw opportunities to collaborate with Starshield in some capacity. “Bringing in more players into the market helps the growth of the market,” said Minda Suchan, vice president of geointelligence at MDA Space.
“As more people come into the Earth observation community, there’s just always more opportunities to partner, to have further conversations,” she added. “No one has the single solution to all the missions. You have to have that collaboration.”
“It creates an opportunity for us to partner,” said Andy Stephenson, senior vice president of global sales at BlackSky, highlighting his company's practice of incorporating data from diverse partners alongside its own imagery to provide insights for customers. “The opportunity of more partners coming into the mix, into the fray, over time is going to help us.”
Starshield could also serve as a catalyst for the industry to address any complacency, argued Barak Solomin, chief marketing officer at ImageSat International. “We have to wake up every day to look in the mirror and ask what makes us special,” he said. If the answer is not convincing, “you probably need to disrupt.”
Solomin proposed that greater adoption of artificial intelligence technologies could drive this disruption. “We can lead a disruption rather than try to block it.”
Anders Linder, general manager for international government at Maxar Intelligence, pointed out earlier in the panel that the Earth observation market, which Novaspace projects to reach $9.2 billion by 2032, has room for further growth.
“I think the Earth observation market is not reaching its full potential,” he said. “If it’s Starshield or something else, there will be more competitors coming in.”
Linder agreed that no single company will dominate the Earth observation market due to the diverse needs of customers. “I think it will spur it. It will be tough for us sometimes,” he acknowledged regarding any competition from Starshield. “I think it will make us better.”