Growing the Space Sector Economy on a Global Scale

Space is changing. The vast emptiness around our planet has become a bustling frontier of commercialization as private companies join the public sector in setting up shop in space. Fueled by advanced technology and dramatically lower costs, private-sector funding of space-related companies exceeded $10 billion in recent years. And analysts predict the space economy could be worth more than $1 trillion by 2040. Exciting, right?

As the space economy expands, it promises to create value across multiple industries and tackle many of the world's most pressing challenges. But there's a hitch. The lack of clear rules and business models for companies eager to join the space race presents a significant challenge.

We can't help but notice that we're on the cusp of the next frontier, with each week bringing news of groundbreaking developments—from rocket system tests to innovative satellite launches and robotic moon landings.

Space activity is accelerating at an unprecedented pace. This includes both "backbone" applications—such as satellites, launchers, and services like broadcast TV or GPS—and "reach" applications, where space tech helps companies across various industries generate revenue. For example, Uber relies on satellite signals and smartphone chips to connect drivers and riders.

Key growth drivers include:

The need for greater connectivity via satellites.

Higher demand for positioning and navigation services on mobile phones.

Increased demand for AI and machine learning insights.

These innovations benefit a diverse set of stakeholders, from food and beverage to transportation, and may also help solve critical challenges like climate change.

A report by the World Economic Forum and McKinsey highlights developments shaping the space industry and adjacent sectors through 2035. They interviewed over 60 leaders and experts to forecast the trajectory of space technology and its impact on various sectors. The insights help answer crucial questions about the future size and scope of the space economy.

Another point to note is that the barriers to entry into space have lowered significantly in recent years. Small satellites and cloud computing have made space more accessible.

While high-profile space startups often capture headlines with visions of interplanetary colonization and space tourism, most space-related companies focus on less sensational but equally important missions. Environmental, social, and governance goals have led to increased use of satellite data for understanding and managing our planet's resources.

Despite the capital and technology flooding into the space industry, establishing a viable space business remains challenging.

And here at Enventure, we are ever ready to help you work around those challenges. Companies need large investments and a long-term profitability horizon—requirements that newcomers often struggle to meet. However, with continued innovation and support, the space economy is set to soar.