Space Economy Update

The space economy is transitioning toward a commercial, service-oriented model driven by significantly lower launch costs. This evolution creates a multi-decade growth opportunity across communication, defense, and emerging orbital infrastructure.

Key Takeaways

• 1.The space economy is projected to reach an addressable market of USD 1.3tr by 2040, driven by declining launch costs and increased commercial and government demand.
• 2.Space has become central to national security, with governments driving significant investment in satellite communication, missile warning, and resilient space-based infrastructure.
• 3.Lower launch costs are the critical enabler for the space economy, with fully reusable heavy launch vehicles expected to further deflate launch costs.

Table of Contents

• Our view
• The Longer Term Investments (LTI)
• The global space economy is poised for liftoff
• A more commercial industry base
• Increasing private sector investment in space
• Largest operators in the market
• The 2025 baseline
• Attractive growth outlook
• Lower launch costs: the key difference
• Technological advancement
• Changing pricing dynamic
• Space and communications
• Consumer communication
• Earth observation and geospatial intelligence
• Ground equipment
• International commitment to space and security
• Military priorities
• Advanced and developing space capabilities
• Space launch developments
• The emerging space economy
• Space tourism and private astronaut missions
• Commercial LEO destinations, space-based manufacturing, and in-orbit servicing
• Space-based solar power (SBSP)
• Data centers in space
• Working hardware, but careful attribution matters
• Outlook: Supply chains benefit first
• (Private) space is getting crowded
• Space and the SDGs
• Investment Risks
• Investment conclusion
• Reference list methodology
• Glossary

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