Space Economics: The New Frontier of Economic Growth

Several of the most important industrial and societal issues facing the globe now might be resolved by the global space economy, according to a 2024 World Economic Forum research. As space technologies are likely to become as ingrained in daily life as chips are now, the sector's worth is predicted to soar to $1.8 trillion by 2035, roughly matching the size and reach of the worldwide semiconductor industry. Space-based and -enabled technologies, such as Earth observation services, navigation and timing, and communications positioning, will be primarily responsible for the expansion.

According to research co-authored with McKinsey & Company titled "Space: The $1.8 Trillion Opportunity for Global Economic Growth," the space economy will have a significant influence on linking people and products outside space itself as the globe grows more mobile and connected. It is anticipated that space-related activities, such as satellite launches, space infrastructure, and exploration, would grow greatly in comparison to their current levels, although at a slower rate than space-enabled businesses and technology on Earth.

The study centres on four key conclusions:

1. By 2035, space will play a significant role in the world economy. The expanded use of space-based and/or -enabled technologies, including communications, location, navigation, and timing, as well as Earth observation, will be a major factor in the space industry's expansion.
2. The influence of space will continue to extend outside of it. Relative to non-traditional players like ride-hailing apps, which would never have achieved the global scale they have without satellite-based technology connecting drivers and riders and providing navigation services, the share of the total space economy captured by incumbent space hardware and service providers will gradually decline.
3. Space will be used to link products and people. More than 60% of the growth in the space economy by 2035 will come from the supply chain and transportation, food and beverage, state-sponsored military, retail, consumer goods and lifestyle, and digital communications sectors. There will be chances in nine additional industries for conventional and non-traditional participants.
4. The Return on Investment in space will go beyond money. Beyond generating income, space will become increasingly important in addressing global issues, such as better humanitarian response, broader prosperity, and climate monitoring and disaster warning.

Every part of daily life will see a greater and greater integration of space technology, from delivering food via ride-hailing applications to supplying meteorological prediction data. Reducing launch costs, commercial innovation, and investment and application diversity will be the main drivers of this development.

According to the research, by supporting three main objectives - harmonisation, accessibility and usability, all businesses may both contribute to and benefit from the expansion and diversification of the space industry. For many years to come, the secret to realising the industry's exponential potential will be increased cooperation, awareness and education between various public and private sector players.

Bibliography

Space economy set to triple to $1.8 trillion by 2035, new research reveals (2024) World Economic Forum. Available at: https://www.weforum.org/press/2024/04/space-economy-set-to-triple-to-1-8-trillion-by-2035-new-research-reveals/