Space launches used to be rare, memorable events of global significance, such as the Apollo 11 mission that landed on the Moon in 1969. The space race, which was the domain of national space agencies led by NASA in the US and the Soviet space program in the past, has now become a thriving space economy estimated to be worth potentially $1 trillion by 2030, according to GlobalData, a leading data and analytics company.
GlobalData’s latest report, “The Space Economy,” reveals that technological advances in manufacturing, propulsion, and the launch of rockets have made it much easier and less expensive to venture into space. The barriers to entry have fallen. In the future, the launch of rockets capable of taking satellites into orbit will become much more commonplace. SpaceX alone will launch around 90 rockets in 2023.
The Space Economy report highlights three developments: the first is the huge economic potential of the space economy. The second is the shift from something that was limited to the superpowers and state space agencies to one that is increasingly dominated by private companies. The third is the influx of huge amounts of investment and rapid technological advances are driving both huge amounts of activity in areas such as launches and satellites and new applications. This rapidly evolving new ecosystem will help realise the full potential of the space economy, but also bring new challenges. Central amongst these will be those around regulation and who actually owns space and its resources.
David Bicknell, Principal Analyst at GlobalData, comments: “Those who grew up in the 1960s will remember the Apollo space missions, the Moon landing, and the Challenger disaster as notable milestones in the space race. Growing investor interest and advancements have led to a surge in start-ups entering the space economy in recent years. Individuals following today’s space activities may, at some point in their careers, become part of the growing space economy.
“Governments, like India’s, also see space as an opportunity and are investing heavily in it. Few in India will forget the drama and national celebration as Chandrayaan-3 became the world’s first spacecraft to land on the south pole of the Moon.
“It should be remembered that, behind the celebrations, the unforgiving environment of space exploration is matched by the harsh financial reality of developing space technologies, which has made acquisitions of complementary companies, strategic suppliers, and partners more likely. The sector has become incredibly competitive, with various start-ups developing similar concepts for cost-effective rockets and satellites to rival the aerospace giants.”
Will Tyson, Thematic Analyst at GlobalData, comments: “The space economy is growing as more industries realize the relevance of space to their operations. For instance, a microgravity environment offers a unique set of conditions, as it has very weak gravity and exists in a near-vacuum state, meaning that companies can manufacture objects in space that they could not on Earth.
“Pharmaceutical and healthcare companies have been taking advantage of this, a pair of industries that traditionally may not be associated with the space economy. Mining also has potential in the space economy. Asteroid mining could help compensate for the shortfall in critical minerals on Earth. And, NASA’s recovery last weekend of a sample from the Bennu asteroid shows real innovation in this area. The space economy is becoming open to more industries than ever before.”
Satellites and Data platforms
In the last five years, technological advancements have allowed start-ups with little capital investment to enter the industry, leading to exponential growth in satellite manufacturing. Consequently, the market has become increasingly saturated. This is not a result of the decreasing demand for satellites but rather of the limited availability of ride-sharing missions to take satellites to space.
The satellite manufacturing industry is largely dominated by Western companies, with most operating satellites used for communications and navigation purposes. SpaceX’s Starlink has the largest LEO satellite constellation with over 4,000 operating satellites, with OneWeb’s satellite communications network coming in second with 648 satellites. Chinese and other Asian companies will increase their market share in the coming years as they develop improved launch capabilities.
Carolina Pinto, Thematic Analyst at GlobalData, comments: “As the number of satellites increases, we will see exponential revenue growth for satellite data services that use data gathered by satellites in orbit, namely communications, navigation, and Earth observation applications. Technological advancements for these services are ongoing, and their application and adoption across different business sectors are at an early stage. Data companies and start-ups no longer require manufacturing expertise to gain access to satellite data. Therefore, there is a great opportunity to profit from the growing availability of climate and mapping data.”
Pinto adds: “Satellite data is also very versatile. It can be used across various industries, including banking, insurance, agriculture, and defense. For example, an insurer can use climate data to monitor, predict, and evaluate the effect that natural disasters have on premium and claim levels, while urban infrastructure data can help insurers achieve a better understanding of urban congestion when insuring new construction projects.”
