July 17, 2024
Space Economy Market

Space Economy Market Is Expected To Be Flourished By Rising Focus On Space Tourism

The space economy market covers products and services associated with space technology sector including spacecraft manufacturing, sub-orbital & orbital space tourism, satellite services, space launch vehicles, etc. Spacecraft manufacturing includes spacecraft design, development, testing, production, integration & operations of spacecraft, satellites & launch vehicles for commercial, scientific and military applications. Sub-orbital & orbital space tourism involves space travel for recreational purpose with privately funded spaceflight experiences offered by companies like SpaceX, Virgin Galactic and Blue Origin. Satellite services provide communication bandwidth, earth observation, remote sensing for defense & intelligence, weather forecasting, agriculture, environment monitoring and other applications.

The global Space Economy Market was valued at US$ 518.48 Bn in 2023 and is expected to exhibit a CAGR of 11.5% over the forecast period 2023-2030, as highlighted in a new report published by CoherentMI.

Market Dynamics:

One of the major drivers for space economy market is rising focus on space tourism. Global initiatives to enable space tourism are boosting the market growth. For example, NASA’s initiative to enable commercial spaceflight to low-Earth orbit has facilitated private companies to develop capabilities for space tourism. Companies like SpaceX, Virgin Galactic and Blue Origin are actively involved in development and demonstration of technologies capable of taking humans to space for tourism. Successful test flights by Virgin Galactic and Blue Origin in 2021 have demonstrated the safety & viability of space tourism. Meanwhile, SpaceX’s civilian missions to International Space Station have paved way for longer duration space tourism in future. As costs of access to space declines with technological advancements and reusable launch systems, space tourism is expected to flourish over the forecast period and will drive significant growth in space economy market.

Segment Analysis:

The space economy market can be segmented into product type, orbit type, application, end user and geography. By product type, the market is segmented into satellites, launch vehicles, and others. Satellites dominate the market as they accounted for over 50% market share in 2020. Satellites have wide applications in communication, earth observation and reconnaissance, and scientific research. By orbit type, the market is segmented into LEO, MEO, GEO and beyond. LEO dominated the market in 2020 with over 35% share due to growing smallsat constellations and applications in communication and earth observation.

Global Space Economy Market Segmentation:

  • By Type
  • Satellite Manufacturing & Launching
  • Ground Stations & Equipment
  • Space Launch Services
  • Satellite Services
  • Space Insurance
  • Others
  • By Orbit
  • LEO (Low Earth Orbit)
  • MEO (Medium Earth Orbit)
  • GEO (Geosynchronous Orbit)
  • Beyond GEO
  • By End User
  • Commercial
  • Government & Military
  • Consumer
  • Others
  • By Application
  • Communications
  • Earth Observation & Remote Sensing
  • Technology Development
  • Navigation & Space Science
  • Others
  • By Payload
  • Communication
  • Imaging
  • Navigation
  • Others

PEST Analysis:

Political: Governments across the globe are increasing investments in space programs and activities to develop indigenous capabilities. Space being strategically important. However, regulations regarding space resource mining are evolving.
Economic: The rise of NewSpace has boosted commercial space industry growth. Falling launch and satellite production costs has attracted private capital. The space economy is projected to be a multi-trillion dollar industry in coming decades.
Social: Applications revolving around communication, education, navigation, and live streaming of events are driving demand. Growing importance of space for defense and security activities.
Technological: Advancements in miniaturization, renewable energy systems, and new materials have enabled growth of small satellites and constellations. Reusable rockets and in-orbit refueling are cutting down costs.

Key Takeaways:

The global Space Economy Market Size is expected to witness high growth during the forecast period. The global Space Economy Market is estimated to be valued at US$ 518.48 Bn in 2023 and is expected to exhibit a CAGR of 11.5% over the forecast period 2023-2030.

North America dominated the market in 2020 with over 40% share led by the US. The region leads globally with respect to private sector investments and government spending on space programs.

Key players operating in the space economy market are SpaceX, Boeing, Lockheed Martin, Airbus, Northrop Grumman, Maxar Technologies, Planet Labs, OneWeb, Rocket Lab, and Virgin Orbit. SpaceX continues to lead the market owing to focus on reusability and cost-effectiveness through programs like Falcon 9 and Starlink constellation.

*Note:
1. Source: CoherentMI, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it