Why Space Economics?
The global Space Sector operates as an exclusive domain of individual governments, forming the backbone of a closed Space Economy.
The US Space Infrastructure ACT of June 2021 included space systems to the sixteen Homeland Security sectors classified as “Critical Infrastructure”.
The UK Guardian (16 July 2021) said: “About 72 countries have space programmes” … also adding — “Space today is also highly commercial.”
Government initiatives are eyeing the private sector. Space Policies are guiding government agencies to secure services from private space companies.
This is a strong signal for the private sector to fully engage and fast grow combined capabilities. Private sector efficiently, effectiveness and expertise make good sense for governments.
PRIVATE-EQUITY PROJECTS
The headlines, public interest and private investments are growing steadily. Morgan Stanley reported in 2020 that venture capital accounted for more than half of investments made on commercial space sector in 2019. Private Space Infrastructure funding during the pandemic in 2020 set an annual record of $8.9 billion.
TURNOVER OF THE GLOBAL SPACE ECONOMY
Statista (2021) indicated the total has reached $446.9 billion and the global government investment on Space Exploration is now valued at $258 billion. From 2011 to 2020, the average number of satellites launched per year was 280. This number will triple to almost 1,000 satellites launched per year until 2030. The total revenue of global satellite industry is now around $271 billion.
ADVENT OF REUSABLE ROCKETS
Satellite launching costs are now about $60 million. New technologies may push prices as low as $5 million. Since 2010, the cost reduction rate is nearly 100 times due to launch and manufacturing technology efficiencies. Cost decline will continue with mass-production and the maturation of space technology. The rapid improvements in launch technology are lowering orbital delivery costs to an estimated $500/kilogram aboard SpaceX’s Starship. NASA’s iconic Space Shuttle charged $20,000/kilogram.
THE U.S. MARKET SHARE
In May 2021 Forbes wrote the US market represents 52% of the global space industry, with over 5,582 firms out of 10,000+ worldwide … “Competition between these companies has led the value of space-focused companies to cross the $4 trillion USD mark for the first time ever …” By simply following the money, the budget size graph tells quite a compelling story for the economic opportunities emerging from the space sector.
In closing, Anchor’s Space Ark Economics team is very grateful for all the support and serious attention by our followers. Please stay tuned for our next post on the benefits and spheres of Space Economics.
by Gasham Gorchubayli
