One of the largest and fastest-growing markets in the world is creating opportunities across nearly every industry. It is larger than the estimated value of the global artificial intelligence (AI) market ($73.38 billion), and even larger than the global semiconductor market ($466.32 billion). Growing year on year by billions of dollars, the global space economy holds vast opportunities for entrepreneurs.
The latest figure from The Space Report reveals the global space economy was worth $546 billion in 2022. This includes the hardware that takes things into space, the satellites that capture data and send it to Earth, and the supplementary services and products that enable and benefit from space activities.
Yet, it’s limiting to consider the space economy as only the domain of space-specific companies. The bigger and more lucrative opportunities are found in markets not traditionally associated with space, what can be called space-adjacent markets. Here, amid a broad ecosystem of enterprises spanning the globe, entrepreneurs and business leaders from every industry have a chance to open new revenue streams, target new customers, and fuel innovation and intellectual property development that can be sold in a variety of industries.
While the half-a-trillion-dollar space economy is eye-catching for its value, it’s perhaps less obvious just what constitutes that economy and where new businesses and customers can be found. To reveal the insertion points for entrepreneurs into the space economy, it is helpful to conceive of the space economy along orbits of opportunity.
Low Earth Orbit
Most of the action is currently found in Low Earth Orbit (LEO), which extends from the atmosphere to about 1,200 miles beyond it. This is the orbit of the International Space Station, the Hubble Space Telescope, and satellite systems primarily operated for remote sensing (aka Earth observation) and communications. It’s a booming segment of the space economy. The number of commercial satellites in orbit jumped 35% from 2021 to 2022, according to The Space Report. Growth in the small satellite market owes to the miniaturization of technologies, as well as the expanding options for launch, thanks to an ongoing revolution in smaller, reusable launch systems. The result is increasing volumes of data sent back to Earth, fueling another space market segment – downstream satellite data analysis. Meanwhile, in orbit, privately built and managed space habitats and space stations have been proposed, and space tourism is ticking up. The future in LEO will be shaped increasingly by the private sector.
The insertion points: Think of space-based assets (like satellites) as collections of technologies and systems, each composed of a variety of parts made from sophisticated materials and run with complex software and ground installations. At every step, there is opportunity for new and growing businesses. Entrepreneurs who hold, or could invent, intellectual property that contributes to a space need can insert their products or services anywhere along the LEO value chain. This includes upstream opportunities, such as in providing the hardware and software components needed to reach and operate in space, and it also includes downstream opportunities, such as analysis of Earth observation data captured in space and streamed to Earth for a variety of applications. Bottom line: if it is needed for space, the opportunity already exists. The challenge for entrepreneurs is to explore the vast space economy and identify where their business and capabilities can satisfy existing or emerging demand. Looking for new business in LEO is a good place to start.
Medium and Geosynchronous Earth Orbit
From 1,200 miles to more than 22,000 miles beyond Earth is Medium Earth Orbit (MEO). It’s an orbit primarily for satellites that observe or send and receive data from the same geographic area on Earth, such as for weather monitoring, telecommunications and navigation systems. This orbit is poised to become more crowded and mission critical. Looking ahead, one necessary element in space activities is untethering missions from Earth’s surface. Not every space asset can be affordably launched and positioned straight from Earth to orbit. As MEO satellites proliferate (particularly for communications during deep space missions), there will be an opportunity to service the assets in situ, greatly extending the life of the satellite. To achieve this, we will need new products and services for refueling on-orbit, performing robotic (even autonomous) repair and maintenance, and if necessary, de-orbiting the asset.
The insertion points: The orbital opportunities are ripe for high-tech, bleeding-edge innovation. Software companies may devise autonomous navigation systems; robotics companies may create components that can function in the harshness of space; and data analysis companies may process the data feeds that permit remote operation from Earth. Entrepreneurs completing advanced degrees may look to translate their research into cutting-edge space applications, and there are also patents available from civil space programs (like NASA) that are free for use. All they need is a bold business to commercialize them.
Cislunar Orbit
Beyond MEO lay hundreds of thousands of miles of inky emptiness, what is called cislunar space. Today, world governments and private companies are reaching for the Moon. NASA’s Artemis program has captured public attention, but other nations (e.g., India) are also striving to place landers and rovers safely on the lunar surface – and a powerful launch system is only one part of the effort. What is also needed are advanced robotics, batteries, power systems, and all the underlying technologies that can run science experiments, explore the lunar surface, and eventually, mine it for resources while building outpost habitats for astronauts.
The insertion points: As well as the advanced engineering and data analysis needed to track and operate space vehicles on their way to and from the Moon, one area where we are likely to see a wave of space technology maturation is in long-term human life support. Here there are opportunities for entrepreneurs in healthcare and life sciences to invent or contribute to the spacesuits, breathing and scrubbing systems, heating and cooling systems, even waste recycling that allow humans to operate in the most inhospitable environments. There will be opportunities to analyze biometrics and devise new medicines and treatments for life support in space. Indeed, companies and industries that are involved in sustaining human life on Earth can play a vital and lucrative role in providing those products and services in space.
Perhaps the toughest task for entrepreneurs in seeking their orbital insertion point is knowing where and how to start. Fortunately, the terrestrial lessons for business development and entrepreneurship also hold true in space. The challenge is to know where to look for the opportunity, and the space ecosystem has something for everyone.
About the Author
Kelli Kedis Ogborn is the Vice President of Space Commerce & Entrepreneurship at Space Foundation where she drives organizational and product growth in disruptive technology commercialization of space and defense innovations. Kelli spearheads Space Foundation’s Space Commerce Institute, to deliver informed insight and actionable programming to help companies and individuals find their market share and grow within the burgeoning space economy. She holds a BA in International Security and Conflict Resolution from San Diego State University, a Bachelor’s in Political Science from Stockholm University and an MA in Government and Security Studies from Johns Hopkins University.
