Tactical adoption comes first
End-users mostly adopt satellite data for tactical decisions and for improving internal activities. These uses involve lower risk, shorter time horizons and value that is easier to assess than in strategic decisions.
Journal article 2023
What is value in the New Space Economy? The end-users’ perspective on satellite data and solutions
Acta Astronautica Vol. 210 · pp. 554–563
Core insight
End-users see substantial potential in satellite data, but they capture that value more readily in tactical decisions than in strategic decisions that demand greater resources, capabilities and organizational change.
Content
The growth of the New Space Economy is making satellite data increasingly accessible to organizations beyond the traditional space sector. Yet access to data does not automatically translate into value for users. This research investigates how organizations perceive and capture value from satellite data and satellite-based solutions. Taking the end-user perspective, the study examines expected value and enacted value across tactical and strategic decisions related to activities, services and products, and explains why substantial gaps can emerge between what organizations expect and what they actually obtain.
Research questions
RQ1
What value do end-users expect from satellite data in the New Space Economy ecosystem? Why?
RQ2
What is the level of adoption of satellite data in end-users’ decision-making? Why?
Method
The study adopts a qualitative and abductive research design focused on the European New Space Economy ecosystem. It draws on 21 interviews with managers from Insurance & Finance, Energy & Utility, and Transportation & Logistics organizations. Interview evidence is triangulated with internal documents, publicly available data and ongoing involvement. Value Theory provides the theoretical lens, with particular attention to expected value and enacted value.
- 21
- Managers interviewed
- 3
- End-user sectors
- Europe
- Empirical context
- Value Theory
- Theoretical lens
Key findings
Expected and enacted value differ across sectors
Transportation & Logistics shows stronger alignment between expected and enacted value, reflecting greater experience with satellite navigation. Energy & Utility and Insurance & Finance show larger gaps, especially for strategic decisions concerning services and products.
Capabilities and transaction costs shape the value gap
High transaction costs, limited resources and competencies, dependence on existing data and routines, uncertainty about long-term value, and weak alignment between available solutions and end-user needs all constrain adoption.
Why it matters
The research brings the end-user perspective into the study of value mechanisms in the New Space Economy and shows how Value Theory can explain the divergence between expected value and enacted value in an emerging technology ecosystem.
For policymakers, space agencies and satellite-data providers, the findings suggest that adoption depends not only on technical performance. Building user capabilities, reducing transaction costs and aligning solutions with concrete end-user needs are also central to turning satellite data into realized value.
Related research
Citation
Paravano, A., Locatelli, G., & Trucco, P. (2023). What is value in the New Space Economy? The end-users’ perspective on satellite data and solutions. Acta Astronautica, 210, 554–563. https://doi.org/10.1016/j.actaastro.2023.05.001
← Back to all publications