The “Global Space Economy Market: Analysis By Client Type, By Application, By Value Chain, By Region Size and Trends with Impact of COVID-19 and Forecast up to 2026″ research published in 2022 says that the global space economy market in 2021 is valued at US$388.50 billion, and is likely to reach US$540.75 billion by 2026.
Space is increasingly becoming of critical importance for a growing number of countries. Not only is the space economy set to grow at above GDP growth rates but space has also become a strategic domain for national defense and security, climate change and connectivity.
According to the OCED, the space economy market can be defined as “the full range of activities and the use of resources that create value and benefits to human beings in the course of exploring, researching, understanding, managing and utilizing space”. Globally, the space industry is growing, with a record number of countries and commercial enterprises engaging in space programs. At the moment, the deployed space infrastructure enables the development of new services, which in turn enables new applications in sectors such as meteorology, energy, telecommunications, insurance, transport, maritime, aviation, and urban development, resulting in additional economic and societal benefits.
The space economy has been gaining its popularity predominantly due to deep space exploration and multiplication of commercial actors in the industry. The space economy market is expected to grow at a CAGR of 6.84% during the forecasted period of 2022-2026.
The space economy market can be segmented on the basis of client type (commercial space, government procurement and other spending from government organizations), application (satellite navigation, satellite communication, earth observation, and others) and value chain (ground equipment, consumer TV, non-satellite industry, satellite manufacturing, fixed satellite services, consumer broadband, mobile satellite services, consumer radio, satellite launch, earth observation services, and second order impacts). On the basis of value chain, ground equipment segment held the largest share of 36.16% of the market in 2021, while consumer broadband is the fastest growing segment with a CAGR of 24.76% during the forecasted period, due to rising demand for access to uninterrupted internet.
Global Space Economy Market Dynamics
Growth Drivers
The global space economy market is driven by the multiplication of commercial actors in the industry, as private companies have supplanted several operations of government space agencies because to reduced prices and shorter manufacturing times.
Further, the market has been expanding during the past few years, owing to factors such as, increased government funding in Space programs worldwide, infrastructure development in the space economy, rising demand for cargo spacecraft, rising demand for satellite launches, and rapid deep space exploration.
Challenges
The growing number of space debris have been a challenge for the market as they could be a potential threat of damage for active satellites as well as for new space launches. Additionally, the market has been facing some challenges, namely, finding appropriate regulatory framework, etc.
Trends
As more research and exploration in the space has advanced, emerging concept of space tourism has set a positive remark in the market, with various private companies involving themselves to make the concept a reality in coming future.
More trends in the market is believed to grow the space economy market during the forecasted period, which may include growing demand for uninterrupted internet, the introduction of space resource utilization (SRU), the rapid increase in small satellites, micro and small launch operations, the development of in-space manufacturing, rapid technological advancement in asteroid mining, climbing demand for payload & telemetry data, the growing relationship between space and climate change, rising demand for earth observer (EO) data, and advancement in the interplanetary transportation system.
Competitive Landscape and Recent Developments
The global space economy market is fragmented market. The global market has multiple players, both government agencies as well as private enterprises. The market is likely to witness new private startups in coming years. The space economy sector saw a progressively higher participation of private companies in space activities.
Market Segmentation Analysis
The commercial space segment held the highest share of 76.00% in 2021, due to the proliferation of commercial actors in the space economy.
Satellite communication segment is the fastest growing segment with a CAGR of 7% during the forecasted period of 2022-2026, due to the growing need for expanding communication technology infrastructure in remote locations.
Due to the rising demand for access to uninterrupted internet, the consumer broadband segment is the fastest growing segment at a CAGR of 25% during the forecasted years of 2022-2026.
The North America earth observation space economy market enjoyed the largest share of almost half of the global market in 2021, primarily owing to the highest number of ongoing research studies and investments in the market. On the other hand, the Africa & Middle East satellite navigation space economy market is the emerging region in the global market, growing at a CAGR of 11% due to the Africa and the EU collaboration resulting in implementation of satellite navigation technologies that have the potential to significantly positive effect economic growth.
Key Players of the Global Space Economy Market
- Space Exploration Technologies Corp.
- Blue Origin, LLC
- Virgin Galactic Holdings, Inc.
- National Aeronautics and Space Administration
- Boeing Company
- Relativity Space
- Northrop Grumman Corporation (Orbital Sciences Corporation)
- Astra Space, Inc.
- Firefly Aerospace Inc.
- Rocket Lab
Source: Press Release