Space economy: Utilizing space for economic growth

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  Quantumrun Foresight
• January 22, 2022

Insight summary

The growing space economy, fueled by substantial private investment and diverse opportunities, is set to reach a market value of USD $10 trillion by 2030. With a surge in space-based jobs and the integration of space technology into society, there will be profound implications across various sectors. These implications include increased access to satellite internet, economic growth through space-based industries, space tourism promoting inclusivity, and advancements in satellite technology benefiting research and communication.

Space economy context

The growing space economy has been spurred by substantial private investment and new investor opportunities in companies involved in spaceflight, satellites, rocket building, and more. With over 10,000 companies globally engaged in space-oriented technologies, the market for this sector is expected to expand to USD $10 trillion by 2030.  

The space economy encompasses all activities and resources that create value and benefit humanity through exploring, managing, and utilizing space. Over the last 10 years, a total of USD $199.8 billion of equity investments across 1,553 companies were recorded in the space sector. The investments mainly came from the US and China, which collectively accounted for 75 percent of the global total.  

The main drivers for the commercial space ecosystem are space tourism, asteroid mining, earth observation, deep space exploration, and (especially) satellite internet and infrastructure, among others. As the global public’s interest and investments in space-based activities increases, the integration of space technology into society will only deepen, resulting in more value creation and socio-economic benefits.

Disruptive impact 

As investments in the space sector continue to grow, governments may face the challenge of establishing international regulations to manage the increasing number of payload launches, congestion in specific orbits, communication channels, and the mounting issue of space debris. Cooperation among nations may be crucial to ensure the sustainable and safe development of space activities.

The expansion of the space economy may also bring about a surge in space-based jobs, creating opportunities for highly skilled professionals in various industries. With the rise of new mining ventures, space tourism, and advanced telecommunications, the demand for specialized workers will increase. This trend will require large-scale training programs to equip individuals with the skills and knowledge required for these unique and challenging roles. Initially, government space agencies may play a major role in providing training, but over time, private companies may assume responsibility for preparing the workforce entering the space economy.

Moreover, the space economy may foster innovation and entrepreneurship, providing companies with new avenues for growth and exploration. The commercial sector may have the opportunity to develop advanced technologies and services tailored for space-based activities, such as satellite manufacturing, launch services, and satellite communication systems. Governments can facilitate this by fostering a supportive regulatory environment and offering incentives for private investment in the space sector.

Implications of the space economy

Wider implications of the space economy may include:

• Increased access to satellite internet services in remote and underserved areas, bridging the digital divide and enabling greater connectivity for education, healthcare, and communication.
• The growth of space-based industries, such as satellite manufacturing and launch services, creating new jobs and fostering economic development in related sectors.
• The rise of space tourism opening up opportunities for diverse individuals to experience space travel and promoting inclusivity in the exploration of outer space.
• Advancements in satellite technology and miniaturization leading to the development of smaller, more affordable satellites for scientific research, weather monitoring, and communication purposes.
• The demand for highly skilled professionals in aerospace engineering, astrophysics, and space medicine, stimulating educational programs and creating specialized job opportunities.
• The utilization of satellite imagery and data for monitoring climate change, deforestation, and natural disasters, facilitating better environmental management and conservation efforts.
• Increased public interest and engagement in space exploration, inspiring the next generation of scientists, engineers, and astronauts and fostering scientific literacy.
• The emergence of space as a potential military domain prompting countries to reassess and update their defense strategies and international relations.

Questions to consider

• What sort of legislation will be needed to govern the space economy, especially when traditional regulations usually only apply to territorial jurisdictions? 
• How can we ensure that activities in space will be beneficial to society, rather than undertaken solely for the pursuit of profit? Is this consideration outdated?