Eyes on earth: Satellite tech can add $135b to South-east Asia’s GDP by 2030, says report
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The power and utilities sector could benefit as satellite images can help energy companies find sites for solar or wind farms.
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SINGAPORE – Ramping up space technologies and sending up more satellites to serve as “eyes on earth” can bring in more money for South-east Asia, according to a new report released on Feb 11.
Leveraging earth observation data, such as satellite imagery, could contribute an additional US$100 billion (S$135 billion) to the region’s gross domestic product (GDP) by 2030, said the report by non-profit Singapore Space and Technology Ltd (SSTL) and consulting firm Deloitte.
And 90 per cent of this additional economic benefit is expected to be channelled to four key industries – agriculture, mining and oil and gas, electricity, and emergency response.
The electricity and utilities sector, for example, could benefit as satellite images can help energy companies find sites for solar or wind farms in Thailand, which aims to have 51 per cent of its electricity generation come from renewables by 2037.
For wind energy projects, accurately assessing wind speeds and finding the best place to install turbines are critical.
“Traditional methods of measuring wind speeds and evaluating large areas involve extensive and costly deployment of ground-based instruments.
“Satellite imagery, however, offers a cost-effective alternative by enabling comprehensive analysis of wide geographical regions,” stated the paper.
As a consequence, the efficiency of a green electricity project is improved as costs are reduced and construction accelerated.
And it is these improvements in productivity that bring about some of the economic benefits, said Ms Michelle Khoo, one of the report’s authors and co-leader of Deloitte South-east Asia’s Centre for the Edge.
Avoiding additional costs is another way in which the economic values can be reaped.
For example, satellites enable the continuous monitoring of areas prone to typhoons, forest fires, floods and other natural disasters.
And thanks to satellite data, accurate maps can be created to help with recovery planning – immediate and long term.
With monitoring, actions taken earlier to reduce the impact of a natural disaster can prevent severe infrastructure losses.
In 2023, the economic value of earth observation data was estimated to be US$15 billion for South-east Asia.
With increased adoption of earth observation tech, the figure could triple to US$45 billion a year by 2030. Cumulatively, this would contribute an additional US$100 billion to the region’s GDP by 2030.
Indonesia is expected to gain around 50 per cent of these economic benefits due to its extensive agricultural and natural resource sectors, the report noted.
One emerging application of satellite tech is in carbon markets, and in ensuring that carbon credits generated from a conservation or reforestation project are of high quality and not overestimated.
Ms Khoo said: “For earth observation, it is about verifying that these carbon credits are based on real activity that is happening on the ground. So it will assist in terms of monitoring the quality of your carbon credits.”
Assistant Professor Tang Hao from the National University of Singapore’s geography department said high-resolution satellite data can provide objective evidence of deforestation over a large area, greatly reducing the risk of project fraud and raising the efficiency of project audits.
And studying historical satellite images can help to establish a baseline of the forests, predict their future trend and identify potential risks such as droughts and wildfires, he added.
Commenting on the report, Prof Tang said not all earth observation data is created equally, and low-quality images exist.
He also noted that most carbon projects have a monitoring requirement of at least 10 years or even decades, which is much longer than the typical lifespan of a single satellite in low earth orbit.
He added: “The sheer use of earth observation data, even very high-resolution images, does not guarantee a high-quality carbon project. It requires both technical development and scientific understanding to deliver the promised benefits.”
On how much Singapore can benefit from this potential injection of an additional US$100 billion to the region, the report noted that the Republic is expected to reap significantly less direct value due to its small land size and lower level of primary industry, like agriculture.
But Singapore stands to gain significantly as a regional space technology and capital hub, and a key solutions provider for the region, the report noted.
The Republic’s expertise in the space sector lies in building high-tech space components, small satellites, as well as engaging in research and development.
The country is home to around 70 local and international space-tech firms, with a combined total of more than 2,000 professionals and researchers.
Scientists here have combined the country’s expertise in the life sciences with space tech.
For example, in March 2024, a package of seeds was sent up to the International Space Station.
The goal was to expose the seeds to the unique and harsh conditions of space such as microgravity and radiation, and induce genetic mutations.
The aim of this research, led by A*Star’s Genome Institute of Singapore, is to foster genetic traits in the seeds that could benefit indoor farming.
The scientists will then selectively breed the seeds to identify desirable traits such as enhanced resilience, higher yield and adaptability to indoor environments.
Since 2011, Singapore has sent over 30 satellites
