Landsat’s Economic Value increases to $25.6 Billion in 2023
A New Report Details Additional Billions of Indirect Benefits
A new report about the Landsat satellite program – a partnership between the U.S. Geological Survey and National Aeronautics and Space Administration – calculates its 2023 value at \$25.6 billion—a marked increase from its 2017 estimate of \$3.45 billion.
Landsat is the only U.S. satellite system designed and operated to collect essential data on Earth’s geologic formations, natural habitats, farmlands, cities, lakes, glaciers, coastlines and other surface features. It provides imagery at landscape-scale resolution that can be used to support efforts to improve environmental sustainability, climate change resiliency, and economic growth – all while expanding an unparalleled record of Earth's changing landscapes.
The “Economic Valuation of Landsat and Landsat Next 2023” study also highlights additional benefits, including more than a billion dollars’ worth of indirect benefits. The report estimates that Landsat Next, the multi-spectral trio of satellites scheduled for launch in early 2030s, could bring in over \$33 billion in annual economic value.
“Our nation’s multi-decadal commitment to the Landsat series of satellites has made—and continues to make—foundational public services and research contributions to the U.S. economy that far exceed their cost,” said Tim Newman, Program Coordinator for the USGS National Land Imaging Program.
Newman added, “The results of this latest study underscore the urgent need to continue the timely development of Landsat Next—a true national priority. Timely development of this revolutionary new Landsat mission can deliver additional billions of dollars in annual economic benefits, supporting sectors as varied as agriculture, forestry, wildfire response and recovery, and water resource monitoring.”
Direct vs. Indirect Value
The driving force behind Landsat’s dramatic gain in total value is the increase in scene-equivalent imagery accessed by users, estimated at 18.1 million in 2017 and rising to 65.6 million in 2023
The authors calculated that 65.6 million Landsat scene-equivalents were accessed by users in 2023. This figure was derived by measuring the total volume of Landsat data accessed through both computer downloads and cloud-based usage, and then dividing it by the average size of a Landsat scene.
Using the same methods employed in the 2019 report that evaluated 2017 data, the new study estimated that the cost per scene had increased from \$183-\$203 in 2017 to \$390 in 2023. Despite this rise, the primary reason for the significant jump in Landsat’s overall economic valuation—now estimated at \$25.6 billion—is the increase in Landsat imagery accessed. This direct value was determined by analyzing historical costs per scene, user surveys, current commercial costs for satellite data, and other relevant variables.
Landsat use has continued to increase over the years, thanks to the landmark 2008 decision by the USGS to make Landsat data available at no cost to users. And beginning in late 2020, the availability of Landsat data in the cloud further improved access by enabling faster downloads and analysis, reducing latency and increasing availability for users worldwide.
The \$25.6 billion figure does not include the value derived from indirect users accessing Landsat data through commercial, cloud-based, data providers and Geographic Information System providers, and other commercial firms.
Real-World Benefits
To understand the full impact of how Landsat data are used to benefit the United States and the world, the report’s authors compiled examples that add up to cost savings of well over a billion dollars.
They also noted that these savings are not necessarily directly related to the researchers or agencies who downloaded the data in the first place. In other words, these examples show the indirect value of Landsat data—what could be called a ripple effect.
Examples of this ripple effect of cost savings and economic efficiencies included the \$41 million in patents that cite Landsat data in their applications and the \$255 million in gold reserves estimated to be discovered using Landsat data. International uses include \$4 million saved in one area of Brazil by improved monitoring of eucalyptus plantations.
- Flood Insurance Savings: The U.S. Department of Agriculture saves \$300 million annually in flood insurance premiums for farmers through better mapping.
- Water Usage Monitoring: The Idaho Department of Water Resources saves nearly \$20 million annually by using Landsat to estimate water usage from unmetered wells.
- Post-Wildfire Restoration: The U.S. Forest Service and Bureau of Land Management save between \$2 million to \$9 million annually using Landsat for post-wildfire restoration activities.
- Crop Insurance Fraud Prevention: Landsat data is used to prevent crop insurance fraud, saving the U.S. government \$100 million annually.
- Water Quality Monitoring: Using Landsat to monitor water quality for chlorophyll saves \$51 million annually in lab costs.
In addition, the report details a multitude of Landsat benefits that are difficult to quantify in dollar value. These include measuring carbon emissions, analyzing how wetlands and lakes benefit people, estimating agricultural water use, tracking biodiversity and wildlife, monitoring deforestation, and gauging economic activity and urban growth.
Forecasting Landsat Next Benefits
With advanced capabilities like 10-meter resolution, 26 spectral bands, and a six-day revisit time, the upcoming Landsat Next satellite mission is projected to provide even more value than Landsat 8 and 9.
The study estimated potential benefits across sectors resulting from improved Landsat Next observations to be between \$33.3 billion and \$34.7 billion annually, representing a 30-35 percent increase in value per scene. These figures were based on the number of downloaded scenes from 2023, which came to 65.5 million. Given the 10-year trend of increased use of Landsat data, the total economic value can be expected to grow beyond the nearly \$35 billion.
With these capabilities, Landsat Next will carry the Landsat legacy into the future and continue to support a wide range of industries, from agriculture to urban planning, and provide critical data for addressing some of the world’s most pressing challenges, including disaster response and climate change resiliency.
Find the full report at: https://www.usgs.gov/media/files/economic-valuation-landsat-and-landsat-next-2023
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