Space Technology Industry - Analysis
The Space Industry
Space Industry
Includes all public & private entities involved in the development, manufacturing,
operation and exploitation of space systems and related infrastructure
Space Companies that
Space Agencies Technology rely on space
Companies infrastructure
• The space industry is valued at $360.0bn in 2018 and is projected grow at a CAGR of 5.6% to
$558.0bn by 2026
• Space technology sector entails technology that is related to entering and retrieving objects or life
forms from space
• Key end customers include civil, military institutions and private entities
Source: Industry research reports and other publicly available sources.
The Space Technology Industry - Landscape
• The space tech industry has undergone a revolution in the last decade • Small private players, startups, research institutes and
and is no more dominated solely by space agencies and big industries universities are innovating the sector in both emerging and
from developed economies developing markets
Global connectivity, IoT & Data analytics
• Private players filling the gap to provide better connectivity along with space-data driven
products
• Technology miniaturization has led to launch of CubeSats and Nanosatellites which is
expected to dominate the growth in the industry
Connectivity, • The growth will be fueled by the demand for better connectivity, IoT and launch of
IoT, Data
Analytics
5G
• Commoditization of Space Data
Space Exploration
• Dominated currently by space agencies, owing to expensive nature of exploration
Space Space missions and space outpost maintenance
Exploration • New players such as Team Indus, SpaceVR, Made in Space and Axiom space are aiming to
Technology
innovate the area
• Commercial players can be valuable partners to space agencies and share investments
and risks
Space
Tourism Space Tourism
• High speed travel via outer space is expected to represent an annual market of $20.0bn
and compete with long-distance airline flights
• Private companies such as Virgin Galactic, SpaceX and Blue Orgin are leading the area,
with growing investments from several small private players
Source: Industry research reports and other publicly available sources.
Space tech industry – Market Dynamics
Market Drivers Market Restraints
• Growing demand of satellites for global
• Space sustainability
connectivity and environmental
concerns arising due to
monitoring
increase in space debris
• Small satellites segment is expected to
account for largest share of expenditure
globally
• High costs related to
New investments across the space industry
research and development
value chain led by: • Inadequate funding
• Affordable commercial access to space
for players in
including decline in launch costs emerging markets
• Inclusion of IoT architecture
• 5G launch
• Earth exploration and • Rise of new regulatory
observation challenges
• Space tourism
Source: Industry research reports and other publicly available sources.
Space tech industry – Value Chain
Upstream Downstream
Manufacture and operations of space systems Using space technology and research
Upstream Downstream
n Downstream utilises the research and technology from upstream in a range of
Upstream work is focused on sending objects into space and space exploration
n
different applications
n Includes activities that focus on the design, manufacture, assembly, launch,
n Includes activities that employ data and knowledge that are derived from the
Definition functioning, maintenance, monitoring and repair of spacecraft destined to be sent
space for Earth-related objectives as well as the products and services that support
out to space as well as the products and services related to them
them
n Also known as Provision of space technology
n Also known as Exploitation of space technology
Build: Engages in building and selling satellites including both hardware (sub- Downlink - Includes technologies facilitating the transmission of data from space
systems, complete platforms and sensors) and software and aerial platforms back down to earth
Launch - Includes building and launching rockets, offering launch aggregation and
Store - Includes data storage and processing services
services
Segments
Analyse - Provides business and strategic insights using data from satellites, drones
Data - Includes satellite constellations & high altitude pseudo satellite (HAPS)
and unmanned aerial vehicles (UAV)
platforms collecting and communicating proprietary data, across the three main
applications of earth observation, communications and navigation
Product - Provides products & services including location tracking, insight &
monitoring, mapping and data platforms
Size &
Size: $141.0bn; CAGR (2012-2016): 1.0% Size: $219.0bn; CAGR (2012-2016): 2.0%
CAGR
Source: Industry research reports, PwC report and other publicly available sources.
Space tech industry – Segment Mapping
Build Launch Data Downlink Store Analyse Product
Space Materials Electronics Software & Launch Relay Ground
Launchers Communications Security
Hardware & Energy & Robotics Engineering Services Systems Terminals
Company Country
Ball Corporation US
Blue Origin US
Boeing US
ConnectX US
GE US
Honeywell US
Lockheed Martin US
US
Northrop Grumman US
Raytheon Technologies US
Sierra Nevada Corporation US
SpaceX US
Swarm Technologies US
Virgin Galactic US
Vorago Technologies US
Eutelsat France
Intelsat Luxembourg
Leonardo Italy Europe
SES Luxembourg
Thales Group France
Source: Company information, industry research reports and other publicly available sources
Space tech industry – Segment Mapping (Cont’d)
Upstream Downstream
Build Launch Data Downlink Store Analyse Product
Space Materials Electronics Software & Launch Relay Ground
Launchers Communications Security
Hardware & Energy & Robotics Engineering Services Systems Terminals
Company Country
Middle
Israel Aerospace Industries Israel East
Antrix Corporation India
AgniKul India
Bellatrix Aerospace India
India
Pixxel India
Skyroot Aerospace India
Vesta Space India
NEC Corporation Japan APAC
Source: Company information, industry research reports and other publicly available sources
Segment- Launch
$5.5bn *
Launch Market
* 2016
Source: Company information, industry research reports and other publicly available sources
Virgin Galactic – Creating value for investors
Having an early entry into a future growing segment and investing in a “First Mover” company will create value for investors in
the long term
Creating value for investors Virgin Galactic Some Risks to be considered
• Lack of Competition: Unique proposition with leading market position;
Other players are at nascent stages • Operation and Execution Risk: With
• Extraordinary Growth Potential: The long term opportunities in Virgin Galactic flown for only couple of time
Space tourism and hypersonic point to point travel is near revolutionary one cannot sideline possibilities of fatal
accident
• Vertical Integration Capabilities somewhat de-risks the
business: Only company that builds it’s own aircraft and operates it • Delays owing to COVID-19
commercially
• $83m in customer deposits: Denotes demand before start • Longer investing period: Owing to
of commercial operations the nature of industry
• Successful completion of two test flights
Source: Company information, industry research reports and other publicly available sources
