The emerging satellite communications (satcom) segment will definitely give a push to the tech companies operating in the space sector. Space is the next big marketplace for billionaires, and it is no longer just reserved for select entities such as governments, aerospace agencies and defence. The rising investments in space are making way for space tech startups to gain big by moving first. In 2021, the space economy was valued at $469 billion, up from 9% in 2020, said a report by McKinsey Quarterly, citing Space Foundation, an NPO (a not-for-profit organisation).
There are many reasons why the growth of the space sector will move fast. First of all, there are more rocket launches happening because of the growth in efficiency resulting in a reduction in cost. SpaceX is leveraging reusable rocket parts to drop costs and increase the frequency of launches. According to an ET report, the cost of heavy launches in the low-earth-orbit (LEO) fell from $65,000 per kg to $1500 per kg in 2021. As mentioned, investments in the sector also grew fast. The private investment in space technology reached $10 billion in 2021, the most that has ever been done.
Innovations brought around the technology have also helped majorly in reducing cost and increasing efficiency. Things such as 3D printing and computer aided-designs of machine parts have been helpful in streamlining the manufacturing of the rockets, which aided in reducing costs. Governments around the world are promoting the space sector now as it is going to be the next battlefield for making the most money. The space economy is still at a very nascent stage, and as investments in the space sector grow, the development will keep happening.
Satcom companies such as OneWeb, Starlink and more reached multiple markets globally to offer broadband from space services to customers. More such players are expected to enter with the aim of serving both enterprises and retail customers.