The Rise of New Space
The Space Economy industry is rapidly expanding across the globe. Often referred as New Space, private companies are now playing a leading role in developing new technologies and providing cost-effective space solutions. Over the last decade, many new space startups have emerged that are lowering the costs of access to space through reusable launch vehicles, satellite manufacturing, and in-space infrastructure development.
Companies like SpaceX, Blue Origin, and Rocket Lab are pioneers in making launch services affordable through innovations like reusable first stages. SpaceX’s Falcon 9 has successfully recovered its first stages over 100 times. Blue Origin recently flew astronauts to space on its New Shepard vehicle and launched payloads on its New Glenn rocket. Rocket Lab is also launching regularly using its small Electron rocket and aiming for reusability. Lowering launch costs through technologies like reusability will prove vital to enabling entirely new space-based business models.
Satellite Manufacturing
At the same time, satellite manufacturing is becoming more distributed. Small satellite producers like Planet, Spire and Terran Orbital are building large constellations of smallsats for applications like Earth observation, internet connectivity and more. Advances in miniaturized components allow more functionality to be packed into smaller satellite form factors. Traditional satellite giants like Space Systems Loral and Maxar are also producing small satellites in addition to their larger designs.
On-Orbit Services
In addition to launch and manufacturing, on-orbit services are emerging as an important area for commercial space companies. Companies like Northrop Grumman, Space Systems Loral, and Orbital ATK provide spacecraft services including refueling, repair, assembly and manufacturing in low Earth orbit. Astroscale and Clearspace are developing active debris removal capabilities to help address the growing space debris problem. Fuel depots, like those planned by Orbit Fab and Orbital Reef, aim to provide propellant and other resources for satellites on-orbit.
Satellite Constellations
Mega constellations of satellites are another major trend driving new commercial opportunities. SpaceX’s Starlink is one of the largest with over 2,000 satellites launched so far to provide global broadband internet connectivity. OneWeb, Amazon’s Kuiper and other proposed constellations have plans to deploy even more satellites for similar connectivity services. These massive fleets will open up new space-based internet and communication markets if successful.
Earth Observation
The commercial remote sensing industry has grown rapidly as well. Companies like Planet, BlackSky and Capella Space are operating constellations of small observation satellites, collecting high frequency imagery for agriculture monitoring, disaster response and other applications. These firms provide cloud-based processing and analytics of their data. Traditional players also operate commercial Earth observation capabilities alongside government work. The global Earth observation market is projected to reach $3 billion by 2027 as demand increases for up-to-date information.
Point-to-Point Transportation
Point-to-point suborbital space tourism is another developing sector. Companies like Virgin Galactic, Blue Origin and Space Perspective aim to provide short-duration, high-altitude experiences to paying customers within the next few years. Longer term, firms like SpaceX and Virgin Hyperloop are proposing developments in hypersonic passenger transport using next-generation vehicle concepts. Such services could revolutionize long distance transportation if technically and economically viable.
Stimulating New Markets
The rapid expansion of private sector space activity is stimulating new downstream space markets. Companies are launching for purposes like satellite manufacturing, space infrastructure deployment, space mining, in-situ resource utilization, and more. New satellite applications allow entirely space-based telecommunications, Earth/environmental monitoring and navigation services. Space tourism is opening up the final frontier to new audiences. As costs decline via innovations, entirely new space-centric business models are emerging across multiple sectors.
Government Space Agencies Adapt
In response, government space agencies are also adapting their roles. NASA, ESA and others are increasingly open to public-private partnerships and exploring how to best leverage commercial capabilities. Agencies still perform cutting-edge exploration and science missions but also rely on private sector launch and hardware development. Regulatory organizations like the FAA are working to establish appropriate rules and oversight for nontraditional commercial spaceflight activities involving large numbers of launches and payloads. Overall, public and private players are collaborating in new ways to advance space interests more affordably and sustainably.
Growing Global Markets
Going forward, reliable projections estimate the global space economy will reach well over $1 trillion annually within the next couple decades. The size and growth rates of different segments will vary greatly depending on technology and market developments. Recent analyses put the Earth observation satellite services industry alone at $3 billion currently and projected to double. The smallsat manufacturing market was estimated at $7 billion in 2021 and expected to rise significantly higher. launch services revenues topped $4 billion last year and reusability could dramatically change growth trajectories. Significant capital is flowing into all parts of the new space ecosystem from venture funds, sovereign wealth and private equity. More countries and companies are joining the growing commercial space revolution every year as access to and uses of space proliferate. The rise of commercial capabilities portends a much brighter future for humanity in space.
From the earliest science fiction imagining of space colonies to present day commercial rocket companies and new space station concepts, the emerging multi-planetary future is undeniably gaining traction. While still in its early days, the rapidly accelerating capabilities of private industry point to a coming space-based economy that may vastly exceed previous projections. As technologies advance, business models mature, and capital continues its influx, the new space age shows every sign of flourishing into a true golden age of innovation and discovery across the final frontier.
*Note:
- Source: CoherentMI, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
