Home Technology What Is Driving The Exponential Growth Being Experienced In The Space Industry?

What Is Driving The Exponential Growth Being Experienced In The Space Industry?

Source: dot.la

The space industry is growing at rates not seen in over 50 years as challenges that existed in the manufacture, launch, and operation of satellites have reduced drastically in the past few years. Developments and advancements in different technologies are also helping operators and corporations explore new business opportunities in the sector. In this article, we will take a closer look at the developments leading to the growth being seen in this industry and where growth opportunities lie so businesses can start capitalizing on them.

Cost Reductions Due to Technological Advances

Source: proactiveinvestors.com

A primary driver for this growth is the development of new technologies such as CubeSats, SmallSats, and reusable launch vehicles. These developments and additional innovations have made it more cost-effective to develop new systems and launch payloads, allowing many more organizations to participate in the space industry.

The development of CubeSats and SmallSats, in particular, has renewed interest for governments and organizations investing in the field to take advantage of new business models such as constellations. Constellations are groups of satellites working together. We have seen this strategy used by Starlink, which aims to provide internet connectivity to the whole world through its interconnected satellites.

Lower costs driving more organizations and governments to be interested in the space industry are leading to increased demand for launch vehicles, satellite integration services, and components. There is also added pressure for launch providers to increase launch rates and production of the required technologies and components, opening additional opportunities for organizations that can leverage them.

Increased Investment Volumes By The Private Sector and Governments

There is a lot of interest in the space industry and its various participants from private equity and venture capital firms. Many of these forms have already invested large sums of money into space industry players and have become integral players in the industry’s growth. These investments have led to many businesses and private companies entering the market to provide the products and services the industry needs.

One report estimates that the space industry attracted private investments of over $270 billion in 2022. In addition, we are also seeing national governments invest in the space industry through different investment partners, such as the National Space Security in the United States.

The increase in investments from private partners and governments has led to increased competition in this industry, pushing innovations and technological advancements further. With things moving as fast as they are due to the influx of money from these investments, businesses should consult with consultants who will help them participate in the space economy and navigate areas such as developing growth strategies and getting federal funding for space-related products and services.

An Increase in The Demand for Space Data

Source: militaryembedded.com

The data-as-a-service market is growing globally, and in the space industry, it is characterized by businesses and organizations delivering high-quality space data directly to their clients.

Research institutions, private companies, and government agencies are all driving growth in this area due to their need for this data. These entities need space-based data for different applications, a typical example being satellite broadband. Earth observation and communications service providers also benefit massively from this type of data.

Specialized space companies act as middlemen by building, owning, and operating satellites and systems that collect, filter, sort, and deliver data alongside client communications. These clients then use these services in their core businesses with their solutions allowing customers to subscribe to data models with only the specific data they need for specific use cases.

Taking Advantage of The Space Industry’s Exponential Growth

Source: airforce-technology.com

Companies operating in the space industry can unlock massive opportunities by focusing on a few key areas.

Space Data-as-a-service

Data gathered from space can be used in a variety of ways, including:

  • Open ocean surveillance
  • Climate change and environmental monitoring
  • Military communications
  • Emergency response

There is also ongoing research to see how this data can support new industries such as autonomous vehicles and the Internet of Things.

All of the above are supported by technology that is making access to space cheaper and the collection of such data easier. The demand for this data is set to increase as its access leads to more businesses finding new ways to leverage it. As they do, we can expect to see growth in the space data-as-a-service sector and the emergence of new industries that will leverage this data.

Additive Manufacturing Services

Additive manufacturing is a process where complex objects are built one layer at a time. The best example of additive manufacturing is 3D printing. This practice will change how space-related components and hardware are built.

Companies interested in the space industry that do not have the capacity to do their own additive manufacturing will need these services, which is an excellent opportunity for businesses to leverage. The businesses in need of these services understand that allowing another company to help them simplify the manufacturing of their parts and components is much cheaper than setting up their own processes.

Robotics in Space

Source: nasa.gov

Robotics has always played a crucial part in space exploration. They have been used for decades in rovers, spacecraft, and other devices used to explore celestial bodies. We have seen this technology advance rapidly in recent years, enabling organizations to create more capable robotic systems.

The main focus for businesses creating such robotics is on-orbit servicing. Remember that failed or unresponsive satellites comprise a significant percentage of space debris. If we can repair them instead of letting them float around in space, it would be the best outcome for everyone.

Space Sustainability

Another area of exploration is space sustainability. Apart from the satellites mentioned above, we have other sources of debris that are making space travel and tourism much more challenging. Governments are already investing in organizations that remove space debris or dispose of satellites that have reached their end of life.

The full potential of the space industry is yet to be realized, especially if we consider the renewed interest in it over the past few years. Technological advancements, new investments, the demand for space data, the manufacture of space-related products, and the provision of related services are all areas businesses should be exploring.