The global space economy market is forecast to grow at a CAGR of 4% from $421-billion in 2024 to $511,2-billion in 2029 driven by an increase in the deployment of low Earth orbit (LEO) satellites, productivity improvements in satellite equipment manufacturing, the competitive launch services landscape, and demand for services around data communications, navigation, and Earth observation.
This is according to GlobalData’s latest Strategic Intelligence report – The Space Economy – which reveals that space applications, which include satellite communications, navigation, and Earth observation, is the largest segment of the space economy and will grow at a CAGR of 2,9% to reach $334,8-billion by 2029.
Falling manufacturing and launch costs, non-Western companies’ entrance into the space economy market, increased space militarisation, and new uses for data from space are the other growth drivers of the space economy.
William Rojas, research director, Strategic Intelligence at GlobalData, comments: “Different scenarios indicate different growth rates for the space economy market over the coming decade. Issues that may restrict growth include a continuation of the currently challenging global economic environment, Russia’s permanent exit from the space economy, and whether Chinese companies can fulfill the country’s space ambitions. The uncertain financial viability of young satellite and rocket companies and the market’s low return on investment in the short-term, combined with the current global economic environment, could lead to a pause in investor confidence in the space economy beyond 2025.”
Future market growth will also depend on the development of reusable rockets and more affordable and frequent ride-sharing services that will increase payload slots on launch missions. The space tourism and colonisation subsectors are unlikely to significantly contribute to the overall space economy market until after 2030.
“Space is no longer the sole domain of governments and incumbent aerospace and defence companies,” says Rojas. “Technological advances in manufacturing, propulsion, and the launch of rockets have made it much easier and less expensive to venture into space. Those businesses that pursued emerging opportunities have gained a first-mover advantage. SpaceX was the first private company to launch a spacecraft into orbit and return it safely to Earth. Currently, it charges clients $69,5-million per launch of the Falcon 9, its partially reusable medium-lift launch vehicle.”
The sector has become incredibly competitive, with various start-ups developing concepts for cost-effective rockets and satellites to rival the aerospace giants. The large satellite groups continue to consolidate to compete with Starlink and the future Amazon Kuiper mega-constellations. Eutelsat and OneWeb merged in 2022, Viasat acquired Inmarsat in 2023, and SES acquired Intelsat in 2024. This market consolidation will continue.
”Satellite broadband communications has become the new strategic imperative impacting national sovereignty, national security, and national digital infrastructure,” Rojas continues. “Countries lagging in terrestrial broadband residential and enterprise infrastructure can use satellite broadband to help fill the gap with advanced countries and attract more foreign direct investment and the digitalisation of industry sectors.”
Technological advancements such as spaceborne synthetic aperture radar (SAR) for detailed surface mapping and satellite-to-ground optical (laser) technology for ultra-high-speed data transmission, 5G Non-Terrestrial Network (NTN), and satellite device-to-device technology will enhance remote sensing and communications capabilities. Quantum key distribution (QKD) for satellite communications could boost data transmission security for banks, data centre companies, government data centres, and corporate data centres.
These technologies will all benefit the space economy in 2025.
Rojas concludes: “The space economy has been intertwined with the oil and gas and mining sectors for several decades already, and now with the falling communications costs of satellite broadband combined with new technologies, many sectors from agriculture to maritime to emergency and disaster response to media will benefit from the pervasiveness of satellite coverage, as well as the new capacity that is coming online, reflecting an increase of over 65X between 2015 and 2025.”