How partnerships are powering the space economy’s trillion-dollar boom

The space economy- unimaginable not 90 years ago- is on track to become a leading industry by 2035. In fact, McKinsey projects it will reach $1.8 trillion USD within a decade, up from $630 billion in 2023. This represents roughly half of the projections for the global payments industry, and almost double the rate of expected annual global GDP growth over the same period. 

With this, space is no longer solely in the hands of governments; it is set to reach multi-industry incidence, including in food and beverages, retail, consumer goods and lifestyle, supply chain and transportation, and even climate disaster mitigation. Thus, an increasing partnership between space technologies and society’s key stakeholders is evident, from politicians and NGOs to influencers. 

Satellite imaging is being used to estimate greenhouse emissions and map environmental degradation, developments in artificial intelligence (AI) technology and cloud computing enable swifter information transfer and processing, advancements like Capella Space’s synthetic aperture radar help build advanced natural disaster forecasting and mitigation tools, and the newly-popularized space tourism industry opens the door to a future of potential space mining and resource extraction. 

However, the exploration of outer space by both private and public stakeholders is nothing new. Innovations in the field have abounded since the Cold War, although the Organization for Economic Co-operation and Development (OECD) notes a decisive shift in the 2020s. 

This new phase is marked by increased launch frequency and an unprecedented number of launched objects, a rise in launches across countries with major geopolitical implications, and the rapid growth in commercial activity, which also raises new questions about space access and ownership.

In this, the growth of the space market has been fueled by both public and private funding, particularly through government space programs focused on national security. Yet, it is the commercialization of outer space that is set to mark a true turning point for the industry. 

Recent advances in the space economy include low-orbit satellite and rocket-enabled technologies which deliver services to both businesses and consumers, including navigation, telecommunications, Earth observation, imagery and surveillance; although a regular user of Google Maps, cellphones, the internet, delivery food services or remotely-operated security systems might not notice it, the space market is increasingly making dents in our everyday lives.

For one, AstroAgency, a space communications and marketing firm based in Edinburgh, Scotland, has epitomized this boom and global cross-sector participation through their recent North American expansion. The company announced its partnership with Denver-based Voyager Technologies, a national security and space technology company, and Washington D.C.-based Cislunar International, a transatlantic space policy advisory. 

With this, AstroAgency joins Voyager Technologies’ VISTA, a software development science park. The UK-based company is now going to be directly embedded into the innovation system of North America, and the wider space economy industry converges in the park, in partnership with Ohio State University. 

Similarly, their partnership with Cislunar International entails ongoing collaboration and mutual support, allowing for the improvement of both companies’ service offerings to their international client bases. 

The expansion of space companies’ geographical footprint follows a more pressing theme: the space economy will transcend space itself. Mckinsey anticipates greater need for connectivity via satellites, higher demand for positioning and navigation services in mobile phones, and increased demand for insights powered by AI and machine learning. 

So, beyond technological breakthroughs, partnerships that connect governments, businesses, universities, and communities across the globe are increasingly pressing ahead of the 2035 trillion-dollar space economy valuation peak. Collaboration is therefore no longer optional, but rather the foundation of sustainable growth in space. 

This article mentions a client of an Espacio portfolio company.