Earth Observation May Drive $3.8 Trillion In Economic Growth By 2030:Report

Greater adoption of Earth Observation (EO) data and technology can boost global growth, according to a new report. Besides adding up to $3.8 trillion to global GDP, the application of EO data can also reduce greenhouse gas emissions by 2.2 gigatonnes annually, says the report titled, Amplifying the Global Value of Earth Observation.

Developed in partnership with Deloitte, the report, carrying insights from 40 leaders across industries, technology, and climate sectors, further said that better use of EO data will also help protect the environment.

What is Earth Observation (EO)?

Earth Observation (EO) is the process of gathering information about the planet's physical, chemical, and biological systems using remote sensing technologies such as satellites, drones, and sensors. It helps us study things like land use, weather patterns, and biodiversity from afar. The EO data helps us understand our planet's changes, manage resources, and make decisions about the environment.

Major findings

1. The global value of Earth observation data is projected to increase from $266 billion to over $700 billion by 2030.

2. EO has the potential to reduce greenhouse gas emissions by up to 2.2 gigatonnes annually -- equal to the emissions of 476 million cars.

3. By 2030, the Asia Pacific region is anticipated to lead in capturing the value of EO, potentially reaching $315 billion. Africa and South America are expected to experience the most substantial percentage growth in this regard.

4. Approximately 94% of the total value that EO could offer by 2030 is projected to come from sectors like agriculture, electricity and utilities, government, insurance, mining, oil and gas, and supply chain and transport.

5. EO data can help industries innovate, work more efficiently, and manage risks better worldwide.

Jeremy Jurgens, Managing Director of the World Economic Forum's Centre for the Fourth Industrial Revolution, said that Earth observation is a vital component of the Fourth Industrial Revolution. "It converges with artificial intelligence, digital twins, and climate technology to offer a powerful toolset for economic prosperity and sustainable growth," he said.

The report identifies agriculture, mining, oil and gas, government, electricity, supply chain and transport, and insurance and financial services as major beneficiaries of EO data. However, it stresses that EO can benefit organisations across various sectors by providing both environmental and economic advantages.

For example, EO data can help farmers improve crop yield and sustainability by providing insights into plant health. Similarly, insurance providers can use EO data to understand and mitigate environmental risks, leading to more sustainable investment decisions.

Jennifer Steinmann, Deloitte Global Sustainability leader said that as EO data approaches mainstream accessibility, organisations across nearly all industries stand to benefit from these valuable sustainability insights. "Earth data can play an instrumental role in helping organisations understand their impacts and dependencies on nature, comply with sustainability regulations, and shape strategies that contribute to a nature-positive and net-zero economy," he said.

Challenges

But the report also mentions some challenges, like not enough people knowing about EO, a lack of specialised workers, and difficulties in navigating the EO market.

To make the most of EO technology, the report suggests creating smart policies and working together across industries. This means increasing demand, improving AI and other supporting technologies, and setting standards to make EO data easier to use.