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Space industry

Activities related to manufacturing components that go into Earth's orbit or beyond

  • 8 min read
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Starlink Mission
Official SpaceX Photos · CC0

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Through Manufacturing, Outer space and Satellite

A narrow definition of the space industry typically encompasses only hardware providers (primarily those that manufacture launch vehicles and satellites). This definition does not exclude certain activities, such as space tourism.

Therefore, more broadly, the space industry can be described as the activities of the companies and organizations involved in the space economy, and providing goods and services related to space. The space economy has been defined as "all public and private actors involved in developing and providing space-enabled products and services. It comprises a long value-added chaining, starting with research and development actors and manufacturers of space hardware and ending with the providers of space-enabled products and services to final users."

Segments and revenues

The three major sectors of the space industry are: satellite manufacturing, support ground equipment manufacturing, and the launch industry. The satellite manufacturing sector is composed of satellite developers and integrators, and subsystem manufacturers. The ground equipment sector is composed of companies that manufacture systems such as mobile terminals, gateways, control stations, VSATs, direct broadcast satellite dishes, and other specialized equipment. The launch sector is composed of launch services, vehicle manufacturing and subsystem manufacturing.

Every euro spent in the space industry returns around six euros to the economy, according to the European Space Agency. This makes it a critical sector for economic development, competitiveness, and high-tech jobs. With regards to the worldwide satellite industry revenues, in the period 2002 to 2005 those remained at the 35–36 billion USD level. In that, majority of revenue was generated by the ground equipment sector, with the least amount by the launch sector. Space-related services are estimated at US$100 billion. The industry and related sectors employ about 120,000 people in the OECD countries, while the space industry of Russia employs around 250,000 people. Capital stocks estimated the worth of 937 satellites in Earth's orbit in 2005 at around 170 to US$230 billion. In 2005, OECD countries budgeted around US$45 billion for space-related activities; income from space-derived products and services has been estimated at US$110–120 billion in 2006 (worldwide).

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