Space industry set to triple in 12 years

The global space economy will be worth 1.8 trillion dollars by 2035, up from 630 billion dollars in 2023, according to a report by the World Economic Forum and McKinsey. The figures include both ‘backbone’ applications, such as those for satellites, launchers and services like broadcast television or GPS, and so-called ‘reach’ applications, those for which space technology helps companies across industries generate revenues. Uber, for example, relies on GPS to provide drivers with directions in cities.

The growth drivers for the space economy include the need for greater connectivity via satellites, higher demand for positioning and navigation services on mobile phones and increased demand for insights powered by AI and machine learning. These innovations are delivering greater benefits to a more diverse set of stakeholders than ever before, including companies in industries ranging from food and beverage to transportation. They may also help solve some of the world’s greatest challenges, such as climate change.

The projected annual growth rate of space applications is similar to that of the semiconductor industry, which is predicted to grow 6-8 percent on average from 2021 into the 2030s.