Cosmic pursuits: Why we reach for the stars

The question of ‘why we continue to invest heavily in space exploration’ often sparks debate. Some wonder if space is not just a catchy, unprecedented advertising campaign, offering a dream for people to believe in, and attracting financing for a scam. While the case of the Moon and Mars colonization captures the public’s imagination, the truth is that space is already contributing to many vital sectors here on Earth.

It is not a Big Bang; it is a Big Boom

The satellite industry is undergoing a massive transformation. In the past years, the satellite market alone generated $281 billion in revenue. From that figure, experts predict that the space industry in total could reach $1.8 trillion by 2035.¹ In terms of economic impact, this industry would be comparable to some of the world’s largest economies, placing it in the top 15.

One of the most notable trends is the growth of small satellites. By 2030, over 10,000 small satellites are expected to be launched, doubling the current number of satellites orbiting Earth. Another significant development is the reduction in launch costs. The most successful launch companies have driven the cost of sending a satellite into space down to $0.87 million per satellite. This cost is expected to fall even further, potentially below $0.5 million, making space even more affordable.

The significant reduction in costs – 90% over the past decade – has made space accessible to a wider range of players, from governments to startups, and even individuals. Considering that the total cost of having a satellite in operation could be less than $1 million, and with over 47,000² millionaires in Luxembourg and 58 million worldwide, owning a satellite could soon become cooler than having a fancy car.

In addition, new business models are emerging. Satellite manufacturing is evolving into a service-oriented industry, with companies offering satellite production as a service. The industry is becoming more segmented, with manufacturers, operators, and launchers all playing distinct but interconnected roles, reducing the risk of failure, and allowing the players to dedicate their efforts to the interconnection of their technologies with the markets they intend to disrupt.

The economic impact of space on different sectors

Indeed, space is no longer just a lofty ambition—it’s becoming a significant contributor to various industries.

Finance will leverage space technologies to comply with new regulations, particularly those concerning the collection of non-financial data for sustainability reporting. The insurance industry will enhance its risk modeling and adjust premiums more accurately. In healthcare, research on exposure to microgravity has revealed resistance to terrestrial diseases, opening up a new realm of discoveries for the healthcare industry.

By monitoring crop health, the agriculture sector can detect issues such as diseases, pests, and water stress at an early stage. This enables timely interventions, resulting in improved yields and more efficient resource utilization. This is enabled by Earth observation technologies, which utilize satellite and aerial imagery to collect detailed information about the Earth’s surface.

The mining and energy sectors also utilize this technology to identify new resource deposits, monitor environmental impacts, and optimize operations. This can lead to the discovery of new opportunities and enhance the efficiency of existing projects.

Furthermore, the transportation sector reaps significant benefits from this technology by monitoring infrastructure such as roads, bridges, and railways. Early detection of wear and tear or potential hazards allows for more effective maintenance planning, ultimately saving money and preventing costly repairs or accidents.

Telecommunications will undoubtedly be at the forefront of this technological boom. By delivering increasingly advanced infrastructure networks, it will enhance connectivity, enabling people to communicate more efficiently and rapidly. Additionally, it will play a crucial role in bridging the digital divide, providing internet access to the half a billion people worldwide who are currently unconnected.

Conclusion

The space industry is focused on developing real-world solutions and driving economic growth. The question of why we go to space is being answered in ways that were unimaginable just a few decades ago. As we continue to push the boundaries of what is possible in space, the opportunities for both economic and social impact are limitless.