What is the space economy?
The space economy encompasses all economic activities related to space exploration and utilisation: the upstream sector (satellite and launch vehicle manufacturing), the midstream sector (launch services, satellite operation), and the downstream sector (satellite-enabled services and applications). It also increasingly includes emerging sectors such as space tourism, in-space manufacturing, lunar resource utilisation, and the servicing market. The global space economy was valued at approximately $570 billion in 2023 (Space Foundation Space Report), with commercial activities representing approximately 80% of the total.
Sector breakdown
Satellite services — including broadband internet, DTH broadcasting, earth observation data, and mobile satellite services — represent the largest segment at ~45% of the total space economy. Ground equipment manufacturing (antennas, terminals, receivers) accounts for ~35%. Launch services represent ~5% despite their high profile. Government space budgets (civil and military combined) account for the remaining ~15%.
Growth drivers
The space economy is growing at approximately 8% per year, driven by: LEO constellation deployment and the associated manufacturing and launch demand; New Space venture investment enabling startups to commercialise new applications; increasing government recognition of space as critical national infrastructure; and growth in GPS/GNSS-enabled applications (estimated at $100+ billion in enabled economic value annually). Morgan Stanley projects the space economy will exceed $1 trillion by 2040.
New segments
Space tourism (Virgin Galactic, Blue Origin, SpaceX Crew Dragon orbital tourism), in-space manufacturing (pharmaceutical crystal growth, advanced materials in microgravity), and lunar economy (Artemis programme-driven commercial lunar landers, ISRU — in-situ resource utilisation for water ice) represent early-stage but potentially transformative sectors beyond the established satellite services core.