The Comprehensive Guide to Space Economy and Technology Taxonomies, Version 1/8/26

Key Takeaways

• Standardized frameworks define the trillions in global space value.
• Taxonomies range from orbital physics to downstream market verticals.
• Clear definitions assist investors, engineers, and policymakers alike.

Introduction

The global space economy has evolved from a niche domain dominated by government superpowers into a complex, multi-trillion-dollar ecosystem integrating commercial startups, multinational conglomerates, and emerging nations. As the industry expands, the terminology used to describe it must become equally sophisticated. Investors, engineers, policymakers, and business leaders require precise frameworks to categorize activities, assess risks, and identify opportunities. These frameworks, known as taxonomies, provide the necessary structure to understand everything from the orbital mechanics of a satellite to the downstream insurance policies utilizing its data.

This article provides a detailed examination of the primary taxonomies currently defining the space sector. It explores economic classifications used by international bodies like the OECD, technical breakdowns of orbital regimes and frequency bands, and market-oriented segmentations that describe how space data integrates with terrestrial industries. Each section breaks down the specific categories within these taxonomies, explaining their function, relevance, and role in the broader aerospace landscape.

The OECD Taxonomy

The Organisation for Economic Co-operation and Development (OECD) provides one of the most widely cited frameworks for economic policy regarding the space sector. This taxonomy focuses on the flow of value, distinguishing between the creation of space assets and the utilization of those assets to generate terrestrial benefits. It serves as a foundational model for government statistical agencies attempting to measure the space economy’s contribution to Gross Domestic Product (GDP).

Upstream (Supply)

The upstream segment encompasses all activities related to the research, manufacturing, and launch of space assets. This is the “infrastructure” phase of the space economy. It includes the scientific research required to develop new propulsion systems, the engineering work to design satellite buses, and the industrial manufacturing of rockets.

Launch services are a primary component of the upstream sector. Companies that build and operate launch vehicles, such as SpaceX and Rocket Lab, fall squarely into this category. The manufacturing of ground support equipment, such as the tracking stations used to communicate with rockets during ascent, is also included here. The upstream sector is capital-intensive, characterized by long development cycles and high technical risk. It is the realm of hardware, where physical objects are bent, welded, coded, and blasted into orbit.

Downstream (Demand)

The downstream segment focuses on the commercial applications and services that utilize space assets. This sector generates the majority of the global space economy’s revenue. It includes satellite telecommunications, direct-to-home television broadcasting, and the processing of earth observation data.

When a consumer pays a monthly subscription for satellite internet or a logistics company purchases GPS tracking services for its fleet, that economic activity occurs in the downstream segment. This category also includes the value-added services derived from space data. For example, a company that analyzes satellite imagery to predict crop yields for hedge funds is a downstream player. The downstream sector is generally more accessible to startups and software companies, as it relies on existing infrastructure rather than requiring the heavy capital expenditure of building and launching satellites.

Space-Related Activities (Ancillary)

The third pillar of the OECD framework captures activities that support the space sector but do not directly involve the production or operation of orbital hardware. This includes technology transfer, where innovations developed for space exploration find applications in terrestrial markets (e.g., memory foam or scratch-resistant lenses).

Legal services specializing in space law, insurance brokerages that underwrite launch risks, and specialized consulting firms all fall under this ancillary category. Scientific support that remains on the ground, such as laboratory simulations of Martian soil or the training of astronauts, is also classified here. These activities are essential for the smooth operation of the primary upstream and downstream sectors, providing the regulatory, financial, and intellectual scaffolding that supports the industry.

BEA Space Economy Satellite Account (SESA) Taxonomy

The Bureau of Economic Analysis (BEA) in the United States utilizes a specialized framework known as a “satellite account” to measure the space economy. This approach allows economists to isolate space-related activity embedded within broader industrial codes. The SESA taxonomy is instrumental in determining the specific contribution of space to the U.S. economy, breaking down value by industrial sector rather than just mission type.

Manufacturing

In the BEA framework, manufacturing captures the production of tangible goods intended for space. This includes the fabrication of guided missiles, space vehicles, propulsion units, and the myriad of components that go into them, from solar arrays to radiation-hardened microchips.

It also extends to the production of ground equipment. The factories that build GPS receivers for cars, satellite dishes for homes, and large antenna arrays for government tracking stations are all counted under manufacturing. This distinction is important because it acknowledges that the hardware on the ground is just as vital to the space economy as the hardware in orbit.

Information

The information sector captures the value generated by the transmission and processing of data. Satellite telecommunications is the largest component here, encompassing everything from transoceanic fiber-optic backup links to consumer broadband.

Broadcasting services, such as Direct-to-Home (DTH) television and satellite radio (e.g., SiriusXM), are major contributors. The BEA also includes data processing services that rely on satellite inputs. If a company’s primary business model involves aggregating and selling weather data derived from satellites, their economic output is categorized under information.

Professional, Scientific, and Technical Services

This category covers the intellectual labor that drives the space industry. It includes Research and Development (R&D) in the physical, engineering, and life sciences. When NASA contracts a private firm to design a new life support system or study the effects of radiation on human tissue, that economic activity falls here.

Engineering services, computer systems design, and geophysical surveying and mapping services are also included. This sector highlights the role of the “knowledge economy” within space, emphasizing that a significant portion of the value created comes from design, analysis, and problem-solving rather than just metal bending.

Wholesale Trade

Wholesale trade accounts for the margins generated during the distribution of space-related hardware. This is the business of moving goods from manufacturers to end-users or retailers. It includes the wholesale distribution of electronic parts, photographic equipment used in remote sensing, and other specialized components. While often overlooked, the logistics and sales networks that supply the aerospace industry represent a distinct slice of the economic pie.

Government

The government sector in the BEA taxonomy reflects public sector consumption and investment. This is split into defense and non-defense spending. Defense spending includes the acquisition of military satellites, ballistic missile defense systems, and secure communications networks. Non-defense spending covers civil space programs like planetary exploration, environmental monitoring by NOAA, and scientific research. This category quantifies the state’s role as both a customer and an investor in the space economy.

The Space Foundation Sector View

The Space Foundation utilizes a four-sector framework that provides a high-level split distinguishing between funding sources (commercial vs. government) and outputs (infrastructure vs. products). This view is particularly useful for understanding the shifting balance of power between public and private actors.

Commercial Infrastructure

Commercial infrastructure refers to the privately funded building of the physical backbone of the space economy. This includes the construction of ground stations, the manufacturing of commercial spacecraft, and the development of launch vehicles. When a company like Blue Origin builds a factory to produce rocket engines, it is investing in commercial infrastructure. This sector represents the industrial base that enables all other commercial activities.

Commercial Products & Services

This sector captures the revenue-generating activities that utilize space infrastructure. It is the “consumer-facing” side of the commercial space industry. This includes the sale of satellite television subscriptions, the leasing of transponders for data transmission, and the selling of high-resolution earth observation imagery.

Companies that provide position, navigation, and timing (PNT) data to smartphone users or sell in-flight Wi-Fi to airlines operate in this sector. It is characterized by high transaction volumes and direct interaction with end-users, whether those users are individuals or other businesses.

U.S. Government Space Budgets

This category aggregates all spending by the United States government on space activities. It is further bifurcated into civil and defense. The civil budget includes funding for NASA and NOAA, covering human spaceflight, planetary science, and weather monitoring. The defense budget covers the Department of Defense (DoD) and the intelligence community, including the National Reconnaissance Office. This sector remains a massive driver of innovation and revenue for the prime contractors that serve it.

Non-U.S. Government Space Budgets

This sector captures the public spending of all other nations. It includes the budgets of the European Space Agency (ESA), the Japan Aerospace Exploration Agency (JAXA), the Indian Space Research Organisation(ISRO), and the China National Space Administration (CNSA), among others. This category highlights the global nature of space exploration and the increasing investment by emerging space nations in sovereign capabilities.

SIA (Satellite Industry Association) Taxonomy

The Satellite Industry Association (SIA) produces an annual state of the industry report that serves as a standard for the satellite sector. Their taxonomy focuses specifically on the satellite ecosystem, which historically accounts for the vast majority of the total space economy.

Satellite Services

Satellite services typically generate the largest share of total industry revenue. This category includes telecommunications, broadcasting, and remote sensing. It covers the recurring revenue streams from delivering bits and bytes from orbit.

Television broadcasting remains a dominant force here, though broadband internet and mobile satellite services are growing rapidly. Remote sensing services, which include the sale of optical and radar imagery for agriculture, defense, and mapping, are also grouped here. This is the service delivery layer of the satellite stack.

Ground Equipment

Ground equipment is often the largest revenue segment by volume, driven by the ubiquity of consumer electronics. This category includes the manufacturing and sale of Global Navigation Satellite System (GNSS) chipsets found in smartphones and cars.

It also includes Very Small Aperture Terminals (VSATs) used by businesses, satellite TV dishes installed on homes, and the massive gateways that connect satellite constellations to the terrestrial internet backbone. The sheer number of GPS-enabled devices globally makes this a massive economic contributor.

Satellite Manufacturing

This segment covers the construction of the spacecraft themselves. It includes the fabrication of the satellite bus (the structural body) and the payload (the instruments, antennas, and transponders). Revenue here is derived from the sale of satellites to operators. This sector is characterized by high-tech manufacturing and complex supply chains involving specialized components like reaction wheels, solar panels, and ion thrusters.

Launch Industry

The launch industry segment includes the services of placing satellites into orbit and the manufacturing of the launch vehicles. Revenue is generated when a satellite operator pays a launch provider to loft their payload. This sector has seen dramatic cost reductions in recent years due to the advent of reusable rockets, which has in turn stimulated growth in the manufacturing and services sectors by lowering barriers to entry.

Horizontal Market Segments (Capabilities)

Horizontal market segments classify the space economy by the functional capability provided, regardless of who the customer is. These are the fundamental utilities that space assets deliver.

Connectivity

Connectivity is the transmission of data, voice, and video. This horizontal covers broadband internet provided by Low Earth Orbit (LEO) mega-constellations, narrowband connectivity for Internet of Things (IoT) devices in shipping containers, and secure voice communications for military units. It also includes the emerging field of inter-satellite links, where data is routed between satellites via lasers without touching the ground.

Positioning, Navigation, & Timing (PNT)

PNT refers to the precise location and timing data provided by GNSS constellations like GPS, Galileo, GLONASS, and BeiDou. This utility underpins much of the modern global economy. “Positioning” allows a user to know where they are. “Navigation” allows them to know how to get somewhere else. “Timing” provides the microsecond-accurate synchronization required for cellular networks, financial stock exchanges, and power grids to function.

Earth Observation (EO)

Earth Observation involves monitoring the planet from above. This horizontal encompasses all forms of remote sensing, including optical imagery (standard photographs), Synthetic Aperture Radar (SAR) which can see through clouds and at night, and Radio Frequency (RF) monitoring which detects signals from ships and radars. EO provides the “eyes” for industries ranging from agriculture to intelligence.

Space Situational Awareness (SSA)

SSA is the capability of tracking objects in orbit. This includes active satellites, spent rocket bodies, and debris fields. SSA services provide collision warnings and help operators maneuver their assets out of harm’s way. As orbits become more crowded, SSA is transitioning from a government-led safety function to a commercial horizontal market, with private companies offering high-precision tracking data to satellite operators.

Vertical Market Segments (Industries)

Vertical market segments classify the space economy by the terrestrial industry that consumes the service. This view demonstrates how space technology integrates into the broader global economy.

Agriculture & Forestry

In agriculture, space data drives precision farming. Farmers use satellite imagery to assess crop health, optimize fertilizer application, and manage irrigation. This reduces waste and increases yields. Yield forecasting services use the same data to predict global harvest volumes for commodity traders. In forestry, satellites monitor illegal logging, track deforestation rates for carbon credit verification, and assess fire risks by measuring vegetation moisture levels.

Energy & Utilities

The energy sector uses space data for infrastructure monitoring and exploration. Oil and gas companies use satellite imagery to detect methane leaks and monitor pipelines for ground deformation that could lead to ruptures. Renewable energy developers use historical solar irradiance and wind data derived from satellites to select optimal sites for solar farms and wind turbines. Utilities rely on PNT for grid synchronization and use EO data to monitor vegetation encroachment on power transmission lines, preventing wildfires and outages.

Finance & Market Intelligence

The finance sector is a heavy user of both connectivity and observation data. High-Frequency Trading (HFT) firms are exploring the use of hollow-core fiber and laser links in LEO to shave milliseconds off transaction times between London and New York. Market intelligence firms count cars in retail parking lots or measure the shadows of floating lids on oil storage tanks to estimate economic activity and supply levels before official reports are released.

Transport & Logistics

The transportation industry relies on space for tracking and routing. Maritime shipping uses Automatic Identification System (AIS) data collected from space to track vessels mid-ocean. Airlines use ADS-B tracking to monitor flights over poles and oceans. Logistics companies use IoT sensors to track the location and condition (temperature, humidity) of sensitive cargo in real-time. Autonomous vehicles and drones depend heavily on GNSS for localization and navigation.

Insurance & Reinsurance

Insurers use space data to model risk and verify claims. Parametric insurance products trigger automatic payouts based on satellite-verified weather data, such as wind speeds or flood levels, eliminating the need for on-site adjusters. After natural disasters, reinsurance companies use high-resolution imagery to assess the extent of damage across entire cities to estimate total losses and manage their capital reserves.

Mining & Natural Resources

Mining companies use multispectral and hyperspectral imagery to identify surface mineral deposits during the exploration phase. Once a mine is operational, satellites monitor the stability of tailings dams to prevent environmental disasters and track compliance with land rehabilitation regulations.

Civil Government & Urban Planning

Local and national governments use space data for urban planning and infrastructure management. Interferometric SAR (InSAR) measures millimeter-level subsidence of bridges, dams, and skyscrapers. Cadastral mapping using high-resolution optical imagery helps nations enforce property rights and collect taxes. Border security agencies use persistent monitoring to detect illegal crossings and smuggling routes in remote areas.

Telecommunications

Terrestrial telecommunications companies (telcos) are increasingly integrating satellite services. “Backhaul” links connect remote cell towers to the core network where fiber is too expensive to lay. “Trunking” provides redundancy when fiber cables are cut. Direct-to-Device capabilities are allowing standard smartphones to connect directly to satellites for emergency messaging and, eventually, full voice and data services, eliminating dead zones.

“New Space” vs. Traditional Models

The distinction between “New Space” and traditional space is often debated, but functionally, it can be viewed through the lens of business models and end-users.

Space-for-Earth

This is the dominant model for both traditional and new space players. It involves placing assets in space to deliver value to users on Earth. The Starlink constellation, weather satellites, and GPS are all Space-for-Earth. The value proposition is entirely terrestrial; space is simply the vantage point or the relay medium.

Space-for-Space

Space-for-Space represents the emerging in-orbit economy where the customer and the provider are both in space. This includes orbital refueling services where one satellite docks with another to transfer propellant. It covers private space stations that host researchers and tourists. It also includes Active Debris Removal (ADR) services. In this model, the economic loop is closed within the vacuum of space.

Earth-for-Space

Earth-for-Space describes the traditional flow of goods from the ground to orbit. It encompasses the manufacturing of launch vehicles, spacesuits, life support supplies, and propellants on Earth for export to space. While this is the oldest model, it is evolving with the rise of super-heavy lift vehicles that enable the transport of massive volumes of cargo to support permanent manufacturing or habitation outposts.

Customer Type Taxonomy

Segmenting the market by customer type reveals the shifting sources of revenue in the space economy.

B2G (Business-to-Government)

B2G is the traditional foundation of the space industry. It involves private companies selling hardware or services to government agencies. This includes defense contracts for spy satellites, science missions for space agencies, and the sale of launch services for national security payloads. These contracts are often large, long-term, and subject to complex procurement regulations.

B2B (Business-to-Business)

B2B involves selling space capabilities to other enterprises. A satellite operator selling wholesale bandwidth to a cruise line or an airline is a B2B transaction. An analytics firm selling crop yield data to a commodities trading house is also B2B. This segment is growing rapidly as terrestrial industries realize the value of space data for their operations.

B2C (Business-to-Consumer)

B2C represents direct sales to individuals. Satellite television (DTH) was the original B2C space giant. Today, satellite broadband services like Starlink are expanding this category. Space tourism, where individuals pay for suborbital or orbital flights, is the most high-profile B2C segment. This market requires consumer-grade user experiences and competitive pricing.

B2B2C (Business-to-Business-to-Consumer)

B2B2C is a hybrid model where a space company sells to a terrestrial business, which then packages the service for consumers. A prime example is the partnership between Globalstar and Apple, where Globalstar provides the satellite link, but the consumer interacts with it through their iPhone’s “Emergency SOS” feature. Mobile network operators using satellite backhaul to serve rural subscribers also fit this model.

Space Technology Layers (The “Stack”)

Investors, particularly venture capitalists like those at Space Capital, often view the space economy as a technology stack, similar to the software industry.

Infrastructure Layer

The infrastructure layer consists of the hardware and the “rails” of the industry. It includes launch vehicles, satellites, ground stations, and manufacturing facilities. This is the capital-intensive foundation (CapEx) upon which everything else is built. Without this layer, there is no access to the space domain.

Distribution Layer

The distribution layer handles the movement and management of data. It includes the orchestration software that manages satellite fleets, the data transport networks that beam signals down, and the edge computing capabilities that process data in orbit. This layer also includes the API middleware that allows developers to access satellite data without needing to know orbital mechanics. It connects the hardware to the user.

Application Layer

The application layer is where the value is realized for the end-user. It consists of the user interfaces and analytics solutions where the “space” component is often invisible. When a user opens a ride-sharing app like Uber, they are using the application layer of GPS. When someone checks The Weather Channel, they are using the application layer of meteorological satellites. This layer creates the massive scale of value by integrating space data into everyday tools.

Space Systems Segments (Engineering View)

Systems engineers break down a space mission into five distinct segments to manage complexity and interfaces.

Space Segment

The space segment comprises the spacecraft itself. It is divided into the “bus” (the chassis providing power, thermal control, and propulsion) and the “payload” (the mission-specific equipment like cameras, antennas, or scientific instruments). This is the hardware that operates in the vacuum.

Ground Segment

The ground segment includes the Mission Control Centers (MCC) where operators monitor satellite health, the Telemetry, Tracking, and Command (TT&C) stations that send instructions and receive status updates, and the data processing centers that convert raw downlinked zeros and ones into usable images or files.

Launch Segment

The launch segment covers the vehicles that get the spacecraft to orbit, the spaceports (launch pads) where they lift off, and the range safety systems that ensure public safety during flight. This segment ends once the spacecraft separates from the launch vehicle.

User Segment

The user segment consists of the equipment used by the final consumer of the satellite’s signal. This includes the GPS receiver in a watch, the VSAT dish on a roof, the satellite phone in a backpack, or the flat-panel phased array antenna on an RV.

Link Segment

The link segment defines the communication pathway itself. It includes the Uplink (Earth to Space), the Downlink (Space to Earth), and the Crosslink or Inter-satellite Link (Space to Space). This segment deals with the physics of radio frequency or optical transmission, link budgets, and signal modulation.

Orbital Domain Taxonomy

Space is not a monolith; it is divided into distinct orbital regimes, each with unique physical characteristics and commercial use cases.

LEO (Low Earth Orbit)

LEO extends from the edge of the atmosphere (approx. 160 km) up to 2,000 km. It is the closest orbit to Earth.

• Characteristics: High speed (completes an orbit in ~90 minutes), low signal latency (delay), high atmospheric drag.
• Uses: Earth observation (closest view), human spaceflight (ISS), and mega-constellations for broadband internet (Starlink, OneWeb).

MEO (Medium Earth Orbit)

MEO resides between 2,000 km and 35,786 km. It is a vast region that contains the harsh Van Allen radiation belts.

• Characteristics: Stable orbits with longer dwell times than LEO.
• Uses: The primary home of GNSS constellations (GPS, Galileo, BeiDou, GLONASS) and high-throughput communications constellations like SES O3b.

GEO (Geostationary Orbit)

GEO is a specific ring at an altitude of approximately 35,786 km above the equator.

• Characteristics: At this altitude, the satellite’s orbital period matches Earth’s rotation (24 hours), making it appear fixed in the sky to an observer on the ground.
• Uses: Broadcast television (allows fixed dishes), weather monitoring (provides a constant view of a hemisphere), and strategic missile warning.

HEO (Highly Elliptical Orbit)

HEO, often associated with Molniya or Tundra orbits, involves an elliptical path where the satellite spends a long time over high latitudes (like the Arctic) and swings quickly past the Southern Hemisphere.

• Characteristics: Provides coverage to polar regions that GEO cannot reach.
• Uses: Communications and missile warning for Russia and high-latitude nations.

Cislunar/X-GEO

This domain encompasses the vast volume between GEO and the Moon, including the Lagrange Points (L1-L5) where gravitational forces between the Earth and Moon balance out.

• Characteristics: Complex gravitational environment, deep space radiation.
• Uses: The future frontier for lunar logistics, deep space gateways, and space weather monitoring.

Technology Readiness Levels (TRL)

The TRL scale, originally developed by NASA, is a universal metric used to assess the maturity of a technology. It is vital for investors to understand the risk profile of a venture.

TRL 1–3 (Research)

This is the “paper study” phase.

• TRL 1: Basic principles observed and reported.
• TRL 2: Technology concept or application formulated.
• TRL 3: Analytical and experimental critical function and/or characteristic proof of concept.
• Context: This is academic research or early lab work. The physics looks good, but nothing has been built.

TRL 4–6 (Development)

This is the prototyping phase, often called the “Valley of Death” because funding is hard to find.

• TRL 4: Component validation in a laboratory environment.
• TRL 5: Component validation in a relevant environment (vacuum chamber, vibration table).
• TRL 6: System/subsystem model or prototype demonstration in a relevant environment.
• Context: Hardware exists and works on Earth, but has not flown.

TRL 7–9 (Deployment)

This is the operational phase.

• TRL 7: System prototype demonstration in a space environment.
• TRL 8: Actual system completed and “flight qualified” through test and demonstration.
• TRL 9: Actual system “flight proven” through successful mission operations.
• Context: Commercial products must be TRL 9 to be insurable and sellable at scale.

Geographic Segmentation (Capability)

Nations can be classified by their level of autonomy in space access and operations.

Major Space Powers

These nations possess full-spectrum capabilities: they can build any type of satellite, launch humans, and reach deep space/Moon without external help.

• Examples: USA, China, Russia.

Established Space Nations

These nations have strong manufacturing and operational capabilities but may rely on partners for specific segments like human spaceflight or heavy lift launch.

• Examples: Member states of the European Space Agency (France, Germany, Italy), Japan, India.

Emerging Space Nations

These are countries actively developing their first niche sovereign capabilities, often focusing on small satellites or regional launch vehicles to reduce dependence on superpowers.

• Examples: United Arab Emirates (UAE), South Korea, Brazil, Australia.

Global South/User Nations

These nations are primarily markets for services. They consume space data for development and connectivity but do not typically manufacture hardware or operate launch sites. Their focus is on the downstream application of space technology for economic development.

Regional Geography Taxonomy (Market)

For market analysis and export control purposes, the world is divided into standard economic regions.

North America (NAM)

NAM is the largest market by revenue and government spending. It is home to the most mature commercial space ecosystem and the largest venture capital pool. The U.S. government is the world’s largest customer for space services.

Europe (EMEA – Europe section)

Europe is characterized by high regulatory integration through the EU and ESA. It has a strong manufacturing base (Airbus, Thales) and a sovereign launch capability (Ariane). It is a leader in environmental monitoring (Copernicus program).

Asia-Pacific (APAC)

APAC is the fastest-growing region for deployment. It is characterized by intense geopolitical rivalry driving sovereign constellation development. China is a major power, while India and Japan are independent poles of power. Australia is emerging as a key location for Southern Hemisphere ground stations.

Middle East & Africa (MEA)

MEA is seeing high growth driven by sovereign wealth fund investment. Nations like Saudi Arabia and the UAE are investing billions to diversify their economies away from oil, buying space capabilities to build local knowledge economies. Africa represents a massive untapped market for satellite connectivity due to the lack of terrestrial fiber infrastructure.

Latin America (LATAM)

LATAM is a key market for remote sensing due to the need for environmental monitoring of the Amazon and agricultural management in Brazil and Argentina. It is also a strong market for satellite broadband due to difficult terrain for fiber optics.

Applications Taxonomy

This taxonomy classifies space activities by the specific societal or technical problem they solve.

Security, Defense & Intelligence

This application covers the military use of space. ISR (Intelligence, Surveillance, Reconnaissance) uses high-resolution imaging to monitor adversaries. SIGINT (Signals Intelligence) intercepts communications. Missile warning satellites detect thermal bloom from launches. Treaty verification ensures nations adhere to nuclear non-proliferation agreements.

Environmental & Climate Monitoring

This application focuses on planetary health. Meteorology satellites provide weather forecasts. Climate science missions measure greenhouse gas concentrations (Methane, CO2), sea-level rise, and polar ice sheet thickness. Disaster management uses space data to map floods, track wildfires, and coordinate rescue efforts.

Connectivity & Communications

This application bridges the digital divide. It provides broadband access to rural homes, connectivity for passengers on planes and ships (Mobility), and narrowband links for tracking cargo containers (IoT). It also includes secure tactical communications for government operations.

Positioning, Navigation, & Timing (PNT)

PNT solves the problem of “where and when.” It enables navigation for vehicles, from cars to autonomous drones. It provides the timing signal that synchronizes global financial markets and power grids. It is also used for geodesy, measuring the shifting shape of the Earth.

Scientific Research & Exploration

This application looks outward. Astrophysics missions (like space telescopes) observe the early universe. Planetary science missions send robots to Mars and the outer planets. Microgravity research utilizes the weightless environment of the International Space Station to develop new pharmaceuticals and materials that cannot be made on Earth.

In-Space Logistics & Manufacturing

This is the emerging application of servicing the space economy itself. OSAM (On-orbit Servicing, Assembly, and Manufacturing) involves refueling satellites to extend their lives or assembling large structures in orbit. Active Debris Removal (ADR) involves capturing and removing dangerous space junk.

Satellite Mass Classification

Satellites are classified by their “wet mass” (including fuel) at launch. This determines the type of launch vehicle needed and roughly correlates to cost.

Femtosatellite

• Mass: < 0.1 kg.
• Description: often called “Chip-sats,” these are essentially circuit boards with sensors, deployed in swarms.

Picosatellite

• Mass: 0.1 kg – 1 kg.
• Description: Tiny experimental payloads, often used for educational purposes.

Nanosatellite

• Mass: 1 kg – 10 kg.
• Description: This category includes the famous “CubeSat” standard (1U to 6U). They have revolutionized access to space by allowing cheap, standardized components.

Microsatellite

• Mass: 10 kg – 100 kg.
• Description: The sweet spot for many commercial Earth observation constellations. They offer a balance between capability and launch cost.

Small Satellite (Mini)

• Mass: 100 kg – 500 kg.
• Description: Common for the LEO mega-constellations like Starlink and OneWeb. They are large enough for high-power radios and propulsion but small enough to be launched in batches.

Medium/Large Satellite

• Mass: > 500 kg.
• Description: These are the traditional “school bus” sized satellites used in GEO for TV broadcasting or highly complex flagship science missions like the Hubble Telescope.

Launch Vehicle Lift Capability (To LEO)

Rockets are classified by how much mass they can lift into a Low Earth Orbit reference trajectory.

Small-Lift Launch Vehicle

• Capacity: < 2,000 kg.
• Examples: Electron (Rocket Lab), Vega (Arianespace).
• Role: dedicated launch for small satellites to specific orbits.

Medium-Lift Launch Vehicle

• Capacity: 2,000 kg – 20,000 kg.
• Examples: Soyuz (Roscosmos), Antares (Northrop Grumman).
• Role: The workhorses for hauling cargo to the ISS or launching medium-sized science missions.

Heavy-Lift Launch Vehicle

• Capacity: 20,000 kg – 50,000 kg.
• Examples: Falcon 9 (SpaceX), Ariane 6 (Arianespace), Vulcan (ULA).
• Role: Launching large GEO satellites, interplanetary probes, or batches of Starlink satellites.

Super Heavy-Lift Launch Vehicle

• Capacity: > 50,000 kg.
• Examples: Starship (SpaceX), SLS (NASA).
• Role: Massive infrastructure projects, human missions to the Moon and Mars.

Remote Sensing Spectral Bands

Earth observation satellites are classified by the part of the electromagnetic spectrum they observe.

Visible/Optical

• Range: 0.4 – 0.7 µm.
• Use: Standard “Red, Green, Blue” imagery that looks like a photograph. Used for mapping and visual inspection. Limited by clouds and darkness.

Near-Infrared (NIR)

• Range: 0.7 – 1.1 µm.
• Use: Vegetation reflects strongly in NIR. Used for crop health monitoring and mapping water boundaries.

Shortwave Infrared (SWIR)

• Range: 1.1 – 3.0 µm.
• Use: Can penetrate smoke and thin clouds. Used to measure moisture content in soil and plants, and to identify specific minerals in mining.

Thermal Infrared (TIR)

• Range: 3.0 – 14.0 µm.
• Use: Detects heat. Used to map urban heat islands, monitor factory activity (thermal output), and track wildfires at night.

Synthetic Aperture Radar (SAR)

• Bands: X, C, L, P bands (Microwaves).
• Use: An active sensor that beams its own energy down and measures the reflection. It sees through clouds, smoke, and total darkness. Used for monitoring structural deformation, ship tracking, and flood mapping.

Communications Frequency Bands

The radio spectrum is the lifeblood of satellite communications. Different bands have different physical properties.

L-Band (1–2 GHz)

• Pros: Long wavelength penetrates weather and foliage easily. Antennae can be simple omnidirectional wires.
• Cons: Very low bandwidth.
• Use: Mobile satellite services (phones), IoT tracking, GNSS signals.

S-Band (2–4 GHz)

• Pros: Good balance of resilience and throughput.
• Use: Weather radar, telemetry/control for satellites, satellite radio (SiriusXM).

C-Band (4–8 GHz)

• Pros: Extremely resistant to “rain fade” (signal loss due to heavy rain). Wide footprint.
• Use: Satellite TV distribution to cable headends, connectivity in tropical regions.

X-Band (8–12 GHz)

• Pros: High throughput, reserved largely for government use.
• Use: Military communications, downloading high-res radar imagery.

Ku-Band (12–18 GHz)

• Pros: High power, allows for smaller dishes (VSATs).
• Cons: Susceptible to rain fade.
• Use: Direct-to-Home TV, satellite news gathering, enterprise broadband.

Ka-Band (26–40 GHz)

• Pros: Very high throughput (spot beams).
• Cons: Highly susceptible to rain fade (requires weather mitigation technology).
• Use: Modern consumer satellite broadband (Starlink, Viasat), in-flight Wi-Fi.

Q/V Bands (33–75 GHz)

• Pros: Massive bandwidth potential.
• Cons: extremely high atmospheric attenuation.
• Use: Experimental high-capacity feeder links for future satellites.

Optical/Laser (> 300 THz)

• Pros: Extremely high bandwidth, unregulated spectrum, impossible to jam/intercept physically.
• Cons: Blocked by clouds (for ground links).
• Use: Inter-satellite links (backbone in space) and secure downlinks to cloud-free ground stations.

Propulsion Technologies

How a spacecraft moves determines its lifespan and mission profile.

Chemical (Solid)

• Mechanism: Burning a solid fuel/oxidizer mixture.
• Use: Kick motors to circularize orbits. High thrust, but cannot be turned off once lit.

Chemical (Liquid)

• Mechanism: Mixing liquid fuel and oxidizer.
• Use: High thrust maneuvering. Bi-propellant (efficient) or Monopropellant (simple, e.g., Hydrazine).

Electric (EP)

• Mechanism: Using electricity to accelerate ions (Hall Effect or Gridded Ion).
• Use: Very low thrust but incredibly high fuel efficiency. Used for station-keeping in GEO and orbit raising for LEO constellations.

Nuclear Thermal (NTP)

• Mechanism: Using a nuclear reactor to superheat hydrogen.
• Use: Theoretical high thrust and high efficiency for rapid transit to Mars.

Green Propulsion

• Mechanism: Non-toxic liquid propellants (like ASCENT).
• Use: Replacing hazardous Hydrazine to lower ground handling costs and improve safety.

Summary

The space economy is no longer a monolithic industry defined solely by government exploration. It is a multifaceted ecosystem categorized by complex taxonomies. From the economic flow of the OECD framework to the spectral precision of remote sensing bands, these classifications provide the vocabulary necessary to navigate the sector. Understanding these segments – whether it is the difference between Upstream and Downstream, or LEO and GEO – is a prerequisite for participating in the next era of industrial expansion beyond Earth’s atmosphere.

Appendix: Top 10 Questions Answered in This Article

What is the difference between upstream and downstream in the space economy?

Upstream refers to the research, manufacturing, and launch of space assets, such as building rockets or satellites. Downstream refers to the commercial utilization of those assets to provide services, such as satellite TV, GPS navigation, or crop monitoring, which typically generates the majority of the sector’s revenue.

How does the U.S. government measure the space economy’s contribution to GDP?

The Bureau of Economic Analysis (BEA) uses a Space Economy Satellite Account (SESA) to isolate space-related activities within broader industrial codes. This framework breaks down the economy into sectors like manufacturing, information, and professional services to quantify the specific value added by space commerce.

What are the primary orbital regimes used for satellites?

The three main orbital regimes are Low Earth Orbit (LEO) for earth observation and low-latency internet, Medium Earth Orbit (MEO) for GPS and navigation satellites, and Geostationary Orbit (GEO) for broadcast television and weather monitoring.

What is the “New Space” economy?

New Space refers to an emerging commercial approach characterized by private investment, faster development cycles, and business models that often treat space-for-space or space-for-earth services as products. It contrasts with traditional government-led programs by focusing on cost reduction and commercial viability.

What is the largest revenue segment of the satellite industry?

According to the Satellite Industry Association (SIA), the ground equipment segment, which includes consumer devices like GPS chips and satellite dishes, often generates the highest volume of revenue. Satellite services, such as television and broadband subscriptions, are the second largest and most visible revenue generator.

How do vertical market segments utilize space data?

Vertical segments classify the economy by the terrestrial industry consuming the service. For example, agriculture uses satellite imagery for precision farming, the energy sector uses it to monitor pipelines, and the finance sector uses it to track economic activity like retail traffic.

What are Technology Readiness Levels (TRL)?

TRL is a 1-9 scale used to measure the maturity of a technology. TRL 1-3 represents early research and concepts, TRL 4-6 involves prototyping and testing in relevant environments, and TRL 7-9 signifies that the technology has been successfully flown and proven in space.

What is the difference between L-band and Ka-band communications?

L-band uses low frequencies that are very resilient to weather and can be picked up by small antennas, making it ideal for mobile phones and IoT. Ka-band uses high frequencies that allow for massive data throughput (broadband) but are susceptible to interference from rain and require more complex ground equipment.

What is the “Space Stack” in investment terms?

Investors often view the space economy as a technology stack consisting of an Infrastructure Layer (hardware like rockets and satellites), a Distribution Layer (software and data transport), and an Application Layer (user-facing solutions like navigation apps) where the value is delivered to the end-user.

What is the difference between B2G, B2B, and B2C in space commerce?

B2G (Business-to-Government) involves selling hardware or services to public agencies, which is the traditional foundation of the sector. B2B (Business-to-Business) involves selling data or bandwidth to other companies. B2C (Business-to-Consumer) involves direct sales to individuals, such as satellite internet subscriptions or space tourism tickets.

Appendix: Top 10 Frequently Searched Questions Answered in This Article

What is the space economy?

The space economy encompasses all activities and resources that create value and benefit for human beings in the course of exploring, researching, understanding, managing, and utilizing space. It includes the manufacturing of space hardware, the operation of satellites, and the downstream services that rely on data from orbit.

How big is the space economy?

While estimates vary by source, the global space economy is a multi-trillion dollar ecosystem when counting both upstream manufacturing and downstream services. Organizations like the Space Foundation and major banks frequently value the sector in the hundreds of billions, with projections reaching $1 trillion by 2040.

What are the benefits of the space economy?

The space economy drives innovation in telecommunications, improves agricultural yields through precision farming, enhances disaster response capabilities, and enables global navigation. It also fosters high-tech manufacturing jobs and creates new markets for data analytics and insurance.

What is the difference between LEO and GEO satellites?

LEO satellites orbit close to Earth (under 2,000 km), moving quickly and providing low-latency signals ideal for internet and detailed imaging. GEO satellites sit much higher (35,786 km), appearing fixed in the sky, which makes them perfect for consistent TV broadcasting and weather monitoring over a specific region.

How does satellite internet work?

Satellite internet works by beaming data from a ground station on Earth up to a satellite, which then relays that signal down to a user’s dish. Modern LEO constellations like Starlink use thousands of satellites to reduce the distance the signal travels, providing faster speeds and lower lag than older GEO systems.

What is space debris and why is it a problem?

Space debris consists of defunct satellites, spent rocket stages, and fragments from collisions that orbit Earth at high speeds. It poses a significant risk to active satellites and human spaceflight, leading to the development of Space Situational Awareness (SSA) and debris removal technologies to ensure orbital safety.

What is the role of private companies in space?

Private companies have shifted from being government contractors to independent operators. They now develop their own rockets, operate commercial satellite constellations, and sell services directly to consumers and businesses, driving down costs and increasing the pace of innovation in the “New Space” era.

How is space used in agriculture?

Space technology enables precision agriculture by providing multispectral imagery that reveals crop health, soil moisture, and pest infestation levels. Farmers use this data to optimize the application of water and fertilizer, reducing costs and environmental impact while maximizing yields.

What is the future of the space economy?

The future of the space economy involves the expansion of “Space-for-Space” activities, such as orbital manufacturing, private space stations, and lunar logistics. It also includes the continued integration of satellite data into terrestrial industries, making space an invisible but essential utility for the global economy.

How do satellites help with climate change?

Satellites provide the only truly global measurements of climate variables. They track rising sea levels, monitor deforestation, measure greenhouse gas emissions like methane and carbon dioxide, and observe changes in polar ice sheets, providing the data necessary for climate science and policy.