As per a recent report by the World Economic Forum in partnership with McKinsey & Company, the space economy is projected to reach $1.8 trillion by 2035, up from its current value of $450 billion. The growth in the space economy can be attributed to three global trends: increasing connectivity leading to a higher demand for satellite internet, growing mobility driving the need for GPS-enabled services, and a more informed populace with a rising demand for AI-powered insights.
The space economy is categorized into two groups: “Backbone” applications like satellites, launch vehicles, and GPS, which currently make up 50% of the space economy, and “Reach” markets, which consist of non-space industries relying on space tech like weather services and food delivery, making up the other half. Reach markets are projected to outpace core space tech and become the main driver of the space economy by 2035.
PNT technology enabled by GPS plays a significant role in driving the space economy, particularly for non-space applications like location-based services. While communications remain a significant revenue source for Backbone players, the market size for PNT is expected to increase by 155% by 2035. Industries such as supply chain management and transportation will see significant growth in space-related revenues, with PNT playing a crucial role in services like Uber and parcel tracking.
However, there are potential challenges that may impact the growth of the space economy. Competition from terrestrial PNT alternatives could lead to downsizing of this market segment. Additionally, steady cost curves may result in a forecasted downside value of $1.4 trillion by 2035 if these challenges persist.
Despite these challenges, there are opportunities for growth in this thriving industry that can address global challenges such as climate risk mitigation, disaster response, and humanitarian crises.
In conclusion, as we continue to push boundaries beyond our planet’s atmosphere and explore new frontiers of outer space exploration and colonization efforts – it’s clear that
