# Satellite, Foot Traffic and Geolocation Data

> Satellite imagery tracks economic activity from space, from retail parking lots to oil storage and crops. Learn how investors use it, the research and the limits.

Source: https://learn.tradelabsai.com/alternative-data/satellite-data/  
Track: Data and Alternative Data · Level: Advanced · Updated: 2026-10-03  
Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice.  
Cite as: TradeLabs Learn, "Satellite, Foot Traffic and Geolocation Data", https://learn.tradelabsai.com/alternative-data/satellite-data/

Satellites now photograph almost every part of the Earth daily. Combined with computer vision, these images can count cars in retail parking lots, measure oil in storage tanks, track construction, estimate crop health and monitor factory activity. Investors use satellite data to estimate company results and commodity supplies before official numbers are released. It became one of the best known examples of alternative data, though its practical edge has narrowed as the data became more widely available.

## What satellites can measure

| Application | How | Investment use |
|---|---|---|
| Retail parking lots | Counting cars over time | Estimate store traffic and sales |
| Oil storage tanks | Shadows on floating roof tanks show fill levels | Estimate crude inventories. See [Storage and Inventories](https://learn.tradelabsai.com/commodities/storage-and-inventories/) |
| Crops | Vegetation indices from multispectral images | Estimate yields. See [Weather and Agricultural Data](https://learn.tradelabsai.com/alternative-data/weather-and-agricultural-data/) |
| Mining and industry | Stockpiles, activity at mines and smelters | Commodity supply |
| Shipping and ports | Vessels and containers | Trade flows. See [Shipping and Supply Chain Data](https://learn.tradelabsai.com/alternative-data/shipping-and-supply-chain-data/) |
| Construction | New buildings and infrastructure | Economic activity, especially in emerging markets |
| Nighttime lights | Brightness of cities | Proxy for economic activity where statistics are weak |
| Pollution and emissions | Nitrogen dioxide levels | Industrial activity, as tracked in China during 2020 |

## Oil tanks: a classic example

Many crude oil storage tanks have floating roofs that sink as oil is drawn down. The roof casts a shadow inside the tank, and the shadow's size reveals how full the tank is.

**Example: Measuring oil inventories**
Analysts track hundreds of tanks in China, where official inventory data is limited. Over a month, satellite measurements suggest stocks rose by the equivalent of 40 million barrels, implying strong import buying. Traders use this to gauge Chinese demand and adjust views on crude prices. Similar measurements of US tanks can be compared with the weekly EIA report. See [Crude Oil](https://learn.tradelabsai.com/commodities/crude-oil/).

## Parking lots and retail

In the early 2010s, firms such as RS Metrics and Orbital Insight sold car counts at major retailers' parking lots. Academic research, including a 2019 study by Katona, Painter, Patatoukas and Zeng, found that parking lot data predicted retailers' earnings surprises and that investors with access to the data could earn excess returns around earnings announcements, while the information was not widely used.

## Technology

- **Optical imagery:** standard photos; affected by clouds and darkness.
- **Synthetic aperture radar (SAR):** sees through clouds and at night, useful for tank and ship monitoring.
- **Multispectral and hyperspectral:** measures plant health and materials.
- **Computer vision:** machine learning models count objects and detect changes. See [Machine Learning in Trading](https://learn.tradelabsai.com/machine-learning/machine-learning-in-trading/).

Companies such as Planet Labs, Maxar and others operate constellations that image large areas frequently.

## Limits and costs

| Limit | Explanation |
|---|---|
| Weather | Clouds block optical images |
| Coverage gaps | Underground parking, indoor activity and online sales are invisible |
| Cost | High resolution imagery and processing are expensive |
| Interpretation | Converting images into accurate economic estimates is hard |
| Crowding | As more funds buy similar data, edges shrink. See [Signal and Alpha Decay](https://learn.tradelabsai.com/research/signal-and-alpha-decay/) |
| Changing business models | Retail parking lots matter less as online shopping grows |

## Who uses satellite data

- **Commodity traders** for oil, metals and crops.
- **Hedge funds** for retail, industrial and emerging market insights.
- **Economists and governments** for activity in regions with poor statistics.
- **Insurers and ESG analysts** for physical risk and environmental monitoring.

## Frequently asked questions

### How is satellite data used in investing?

To measure activity such as cars in parking lots, oil in storage tanks, crop health and shipping, helping estimate company results and commodity supply.

### Can satellite data predict earnings?

Research has found that parking lot data predicted some retailers' earnings surprises, but the edge has narrowed as the data became widely available.

### What are the limits of satellite data?

Clouds, coverage gaps, high costs, interpretation challenges and crowding as more investors use the same data.

Next, learn about trade flow data in [Shipping and Supply Chain Data](https://learn.tradelabsai.com/alternative-data/shipping-and-supply-chain-data/).

## Continue learning

- Next lesson: [Shipping and Supply Chain Data](https://learn.tradelabsai.com/alternative-data/shipping-and-supply-chain-data/)
- Previous lesson: [Web Traffic, App Downloads and Search Trends](https://learn.tradelabsai.com/alternative-data/web-traffic-data/)
- Related: [Web Traffic, App Downloads and Search Trends](https://learn.tradelabsai.com/alternative-data/web-traffic-data/): Website visits, search trends and app downloads offer early signals of demand. Learn the main data sources, how investors use them, free tools and the pitfalls.
- Related: [Alternative Data Explained](https://learn.tradelabsai.com/alternative-data/alternative-data-explained/): Alternative data is non traditional information like card spending, web traffic and satellite images. Learn the main types, how funds use it and the risks.
- Related: [Storage and Inventories](https://learn.tradelabsai.com/commodities/storage-and-inventories/): Inventories are the buffer between commodity supply and demand. Learn the theory of storage, how stocks affect prices and curves, and the key inventory reports.
- Related: [Weather and Agricultural Data](https://learn.tradelabsai.com/alternative-data/weather-and-agricultural-data/): Weather forecasts, degree days and crop data drive gas, power and grain prices. Learn the main data sources, how traders use forecast models and the pitfalls.
- Related: [Shipping and Supply Chain Data](https://learn.tradelabsai.com/alternative-data/shipping-and-supply-chain-data/): Vessel tracking, freight rates, customs and port data reveal global trade flows. Learn the main sources, indices like the Baltic Dry and how traders use them.
- Related: [Crude Oil](https://learn.tradelabsai.com/commodities/crude-oil/): Crude oil is the world's most traded commodity. Learn WTI vs Brent, the futures contracts, OPEC+, shale, inventory reports and how traders approach oil.