The global space economy market is forecast to grow at a compound annual growth rate (CAGR) of 4 percent from $421.0 billion in 2024 to $511.2 billion in 2029, according to GlobalData, a data and analytics company.
The growth will be driven by an increase in the deployment of low Earth orbit (LEO) satellites, productivity improvements in satellite equipment manufacturing, the competitive launch services landscape, and demand for services around data communications, navigation, and Earth observation.
GlobalData’s latest Strategic Intelligence report, “The Space Economy” reveals that space applications, which include satellite communications, navigation, and Earth observation, is the largest segment of the space economy and will grow at a CAGR of 2.9 percent to reach $334.8 billion by 2029.
Falling manufacturing and launch costs, non-Western companies’ entrance into the space economy market, increased space militarization, and new uses for data from space are the other growth drivers of the space economy.
William Rojas, research director, strategic intelligence at GlobalData, says: “Different scenarios indicate different growth rates for the space economy market over the coming decade.
“Issues that may restrict growth include a continuation of the currently challenging global economic environment, Russia’s permanent exit from the space economy, and whether Chinese companies can fulfill the country’s space ambitions.
“The uncertain financial viability of young satellite and rocket companies and the market’s low return on investment in the short term, combined with the current global economic environment, could lead to a pause in investor confidence in the space economy beyond 2025.”
Future market growth will also depend on the development of reusable rockets and more affordable and frequent ride-sharing services that will increase payload slots on launch missions.
The space tourism and colonization subsectors are unlikely to significantly contribute to the overall space economy market until after 2030.
Rojas adds: “Space is no longer the sole domain of governments and incumbent aerospace and defense companies. Technological advances in manufacturing, propulsion, and the launch of rockets have made it much easier and less expensive to venture into space.
“Those businesses that pursued emerging opportunities have gained a first-mover advantage. SpaceX was the first private company to launch a spacecraft into orbit and return it safely to Earth. Currently, it charges clients $69.5 million per launch of the Falcon 9, its partially reusable medium-lift launch vehicle.”
The sector has become incredibly competitive, with various start-ups developing concepts for cost-effective rockets and satellites to rival the aerospace giants. The large satellite groups continue to consolidate to compete with Starlink and the future Amazon Kuiper mega-constellations.
Eutelsat and OneWeb merged in 2022, Viasat acquired Inmarsat in 2023, and SES acquired Intelsat in 2024. This market consolidation will continue.
Rojas says: ”Satellite broadband communications has become the new strategic imperative impacting national sovereignty, national security, and national digital infrastructure.
“Countries lagging in terrestrial broadband residential and enterprise infrastructure can use satellite broadband to help fill the gap with advanced countries and attract more foreign direct investment and the digitalization of industry sectors.”
