Governments, aerospace, and defence companies are no longer the only players in the space race. Businesses that seize new opportunities now may benefit from being first to market.
The masses who first connected to the internet in the 1990s and the passengers who boarded commercial flights shortly after World War II had no idea that air travel would take off over the following decade. They also had no idea computers would one day provide most of their news, entertainment, and social life. Few people today are aware that the space economy, which is broadly defined as human-beneficial activities in orbit or on other planets, has the potential to alter how people live and work in the future drastically.
The frequent news stories about SpaceX, Blue Origin, and other private corporations launching their rockets and deploying satellite constellations indicate impending changes. These once-primarily government agency-restricted operations are now open to the private sector thanks to recent developments in manufacturing, propulsion, and launch that have made space travel more straightforward and less expensive. Lower prices have allowed new start-ups to flourish and inspired established aerospace firms to investigate advanced options that previously looked too expensive or challenging. Investors have been drawn to the technical advancements, which have increased space spending during the previous five years.
The potential for novel space applications is enormous, mainly if well-known aerospace corporations collaborate with firms that haven’t often gone into orbit. For instance, pharmaceutical businesses might build a lab on a space station to investigate cell growth, or semiconductor companies might produce chips in facilities on other worlds to see whether anything about the zero-gravity environment in space makes the process more efficient. Such possibilities, which a few years ago might have seemed like the stuff of science fiction, could soon play a crucial role in business operations in various industries.
But when and how should businesses pursue novel use cases with increased access to space? And with the technology being so new, how can they determine which possibilities are the most promising? Even though there are still many unknowns, businesses that start looking into these issues now can have an advantage in the long run.
The benefits of the space economy — with more to come
Long known as a potent incubator for innovation, space has attracted numerous private enterprises, governments, and carriers. Since the 1957 launch of Sputnik 1 until the present, satellite services, including communications, data collection, and picture analysis, have accounted for most of the value delivered by the space economy. Large businesses can benefit from satellites for various tasks, including international videoconferencing, instant credit card authorization, and inventory tracking at remote locations. When a consumer uses an online navigation system to pinpoint their location, make calls while flying, or are in remote areas without cell phone towers, they are using satellite technology. Additionally, satellites are credited for transmitting the signals allowing television viewers to see their preferred shows. Unless a problem arises and draws attention to the discreet technology running in the background, the significance of satellites in these activities is frequently ignored—many people may believe terrestrial computer networks offer essential connectivity.
Satellites also aid in the solution of challenging social, environmental, and economic problems. Consider a few ways that satellite data can provide insights—often more effectively and comprehensively than other sources:
- Climate change. To measure the effects of global warming and find potential contributing factors, such as illegal logging, more than 160 satellites continuously scan the Earth. For more than 20 years, NASA has tracked environmental changes with an instrument attached to its Aqua satellite, including ocean water, water vapour, clouds, sea and land ice, and precipitation. Government agencies can use information from other satellites to take immediate action to combat wildfires, coastal erosion, and other climate-related natural disasters.
- Food security. More and more, crop development and potential harvest threats like drought or insect invasions are being tracked using satellite data. The SERVIR project, a collaboration between NASA and the US Agency for International Development, uses geospatial technologies and data from Earth-imaging satellites to assist governments in addressing various problems, including food shortages.
- National security. Governments can frequently use satellite images and data to gather crucial intelligence, such as details on the deployment of weapons systems or troop movements, in collaboration with private sector businesses.
The space industry was estimated to be worth $469 billion in 2021 by the non-profit Space Foundation, an increase of 9% from 2020 and the fastest growth seen since 2014. Although the space economy currently creates the majority of its value by facilitating or augmenting activities on Earth, in-orbit service, research and development, and manufacturing could generate considerable future value. Nevertheless, present-day satellite services will continue to be crucial and perhaps indispensable in some future use cases.
How does the future space economy impact you?
Global space trade has skyrocketed. The future of space spans all industries and is currently worth $469 billion annually. Companies throughout the world are searching upward for fresh prospects. The next phase is to move manufacturing and heavy industrial processes and businesses into space, which will open up virtually endless opportunities.
The development, adoption, and adaptation of new and emerging technologies are expected to undergo transformative changes over the coming ten years. These changes will have enormously positive effects on society, including creating new businesses, jobs, opportunities, medical advancements, and novel ways to live sustainably in the future.
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