The Space Economy: An Overview

What the space economy includes, how large it has become, and why falling costs have opened space to private companies.

The space economy includes all the activities and resources that create value through exploring, understanding and using space. It is much larger than rocket launches alone.

What it includes

Upstream: building and launching rockets and satellites, and ground stations to control them.
Downstream: services that use satellites, such as satellite television, internet, navigation, weather forecasting and Earth imaging.
Government programmes: space agencies, defence and science missions.

By far the largest share of revenue comes from downstream services that people use every day, often without realising they depend on space.

How big is it?

Estimates vary by definition. The Space Foundation, an industry group, estimated the global space economy at around 570 billion dollars in 2023, and it has grown steadily. Some forecasts suggest it could reach well over a trillion dollars in the 2030s.

From governments to companies

For decades, space was dominated by governments, especially the United States and the Soviet Union during the Cold War space race. Launches were extremely expensive. Since the 2000s and especially the 2010s, private companies have transformed the industry:

Reusable rockets have cut launch costs.
Small satellites, some the size of a shoebox, are cheaper to build and launch.
Venture capital has funded many space start-ups.
Governments increasingly buy services from private firms rather than building everything themselves.

Why it matters

Space services underpin modern life: navigation for transport and delivery apps, timing signals for banking and phone networks, weather forecasts for farmers, and communications in remote areas.

A day that depends on space

A farmer checks a weather forecast built partly on satellite data. A delivery driver follows GPS directions. A bank's computers record transactions using precise timing from satellites. A family in a remote area watches satellite TV. None of them may think about space, but each relies on it.

Thinking the space economy is mostly about astronauts

Human spaceflight gets attention, but most space economy revenue comes from satellites providing communications, navigation and Earth observation services on the ground.

Key takeaways

The space economy includes rockets, satellites and the services they provide.
It was estimated at around 570 billion dollars in 2023 and is growing.
Downstream services like navigation, communications and weather data are the largest part.
Private companies, reusable rockets and small satellites have transformed the industry.