The global space economy is currently valued at $469 billion, and industry watchers forecast its value to reach over $1 trillion by 2030. Therefore, the rocket-fueled race to establish a presence in the space value chain is underway. Notable organizations such as NASA, SpaceX, Airbus, the European Space Agency, and numerous other private and state-back entities are all jockeying for positions. Altogether, over 10,000 private space technology companies, 5,000 investors, and 130 state organizations are exploring investment opportunities in Earth’s final frontier across three broad categories: the upstream, midstream, and downstream segments of the space economy.
Upstream (Earth-to-Space): This segment encompasses all companies geared towards firing spacecraft, satellites, and various equipment into orbit and beyond. Upstream activities primarily focus on designing, manufacturing, testing, and launching spacecraft and satellites. In collaboration with government agencies or promoted by private enterprises, a few companies, such as Airbus, Lockheed Martin, and SpaceX, possess the diversified expertise and capabilities to compete across most, if not all, upstream activities. Many other companies, however, are specialized and can only provide services related to one activity, including, but not limited to, components, software, rocketry hardware, and propulsion. Of all upstream activities, experts forecast that satellite integration, components, and launch vehicles will drive the most value in the next three to five years.
Midstream (Space-to-Space): All activities related to achieving successful launches, flight navigation, ground and in-space maintenance, and repairs are categorized within the midstream segment. These activities are conducted on Earth to enable space operations on equipment, on spacecraft, or between multiple spacecraft. Investors here promote various services, including mission control, ground networks, in-orbit servicing, space exploration, and tourism. Noteworthy companies include communications services provider Goonhilly Earth Station and space traffic management firm Leo Labs.
Downstream (Space-to-Earth): The downstream segment refers to the infrastructure, systems, equipment, etc., through which space-derived data is funneled back to Earth and distributed for various applications. These activities fall into three sub-segments: satellite communications and connectivity, earth observation and positioning, navigation, and timing (PNT), which can then be applied to services including, but not limited to, weather tracking, internet connectivity and telecommunications, and global positioning. Leading companies include Starlink, known for its satellite internet constellation, and satellite imagery and data services provider Skywatch.
Sources: Strategy&, The Space Economy by Chad Anderson, Deloitte Insights, the Brookings Institution, and the Bank of America Institute