Cosmic Cashflow: Why Space Will be Worth $2 Trillion by 2035

TL;DR

• Rapid growth projections for the space industry indicate the sector’s economic promise and opportunities for investors, policymakers, and industry professionals. 
• Space advances will touch many sectors on Earth, from agriculture and energy to urban planning and defense to supply chain and disaster management, signaling a potential shift in the global economy. 
• A surge in public and private investments in space exploration, satellite technology, space infrastructure, and, eventually, space tourism underpins these growth projections. 

Driving Forces Behind Space Economy Growth

The space economy stands on the cusp of a transformative era. A convergence of technological advancements, such as SpaceX’s reusable rocket technology and decreased launch costs, propel the renewed interest in space opportunities, reshaping the industry landscape and unlocking new realms of economic potential. Integrating space technologies into various industries is a primary catalyst for the sector’s projected growth, with over 60% of the expansion expected to stem from this integration by 2035. 

As the space industry hurtles towards a projected value of $1.8 trillion by 2035, the sector’s economic significance becomes increasingly apparent, painting a picture of opportunities for investors, policymakers, and industry professionals alike. Revenue projections indicate a growth trajectory that outpaces traditional economic sectors, signaling a potential shift in the global economy. A surge in public and private investments in space exploration, satellite technology, space infrastructure, and, eventually, space tourism underpins these growth projections. 

The rapid growth trajectory signifies the transformative power of space technologies in reshaping economic landscapes. As companies leverage space technologies for diverse applications, the space industry’s economic impact extends beyond traditional aerospace domains. Advanced satellite technologies, such as high-resolution imaging satellites and Earth observation systems, tackle problems as varied as agriculture, urban planning, supply chain logistics, defense, energy, insurance, and disaster management (see visual). 

Government and Private Sector Collaboration in Space Exploration

The collaboration between government agencies and private enterprises in space exploration is a cornerstone of innovation, progress, and advancement within the industry. Government space funding is pivotal in supporting research, development, and infrastructure in the space sector. NASA’s collaboration with private aerospace companies like SpaceX and Boeing has led to the development of crewed space missions, commercial space transportation services, and cutting-edge technologies revolutionizing how we access and explore space. 

The recent surge in private sector investments in space-related companies reflects confidence and interest in the industry’s commercial opportunities and economic potential. Companies like Blue Origin, Astra (see case study), Virgin Galactic, and Rocket Lab have attracted substantial investments, enabling them to pioneer new technologies, services, and business models that reshape the space economy. 

The Role of Non-Traditional Partnerships in the Space Industry

The industry landscape has been rapidly evolving with the emergence of non-traditional market entrants who leverage space-based technologies for innovative applications. For instance, companies like Google and Microsoft are exploring partnerships with Starlink to provide global broadband coverage and value-added services, expanding the reach of digital services to remote regions. Integrating space technologies into the traditional tech sector highlights the versatility and adaptability of space assets. 

The transformative impact of space technologies on everyday life and industries is profound. Innovations from space exploration have far-reaching implications for transportation, communication, and environmental monitoring. For instance, consumer products like LED lighting, GPS systems, and advanced medical devices originated in space technologies. Ride-hailing apps are another example of this, with companies like Uber and Lyft utilizing satellite data for route optimization. 

Emerging Economies and Opportunities in the Space Sector

The participation of emerging economies in space exploration creates new opportunities for growth and collaboration. China and India have made significant space technology advancements with satellite launches, lunar missions, and space research centers. In Africa, space technology, including satellite data, is revolutionizing traditional agricultural practices via precision farming, crop monitoring, and soil analysis, creating secondhand, Earthside opportunities. Additionally, the deployment of satellite communications for telemedicine services, distance learning, and e-governance bridges the digital divide and increases access to essential services and information. The increased involvement of emerging economies enhances global technological capabilities and fosters economic development and international partnerships within the space sector. 

Envisioning the Future of the Space Economy

Embracing space opportunities is vital to unlocking economic growth. The advances occurring in the space sector drive job creation, innovation, and economic diversification, positioning it as a critical engine of global cooperation and economic growth. The emergence of the new space economy has spurred innovative business models, investment opportunities, and entrepreneurial ventures across sectors and industries. 

The future of the space economy is teeming with opportunities for economic growth, technological advancement, and global collaboration. Projected to reach nearly $2 trillion by 2035, the space sector is poised to drive global economic expansion. Bold investments in space technology, benefiting life on Earth and future extraterrestrial ventures, will shape a future defined by innovation, connectivity, and prosperity. 

Image: Albireo in Cygnus with Starlink Satellites, NOIRLab Images.

---

Ms. Texeira is the Founder of StratComm Consulting and is a Program Analyst at the Federal Aviation Administration. She previously served as the Director of Logistics for the DC Air National Guard. This piece has been adapted with permission from her original article, which can be found here.