The Space Economy: Where the Future Is Headed
The Space Economy
A builder/investor’s reflection, not a full review.
When most people hear “space economy”, they picture rockets. The smarter bet? Data and software built on satellite infrastructure. Satellites orbit quietly; the intelligence they generate is already transforming industries on Earth.
“The real frontier isn’t rockets—it’s how orbital data becomes decisions on Earth.”
What do we mean by “the space economy”?
Size: The global space economy reached $613B in 2024, with most growth coming from commercial activity.
Scope: It spans the value chain below, from building hardware to delivering end-user apps.
Why now: Cheaper launch + cloud + AI have shifted value up the stack toward analytics and workflows.
What the Book Explains
The authors break the industry into three layers:
Upstream → building satellites, components, and launch systems.
Midstream → operators, ground stations, and data processing.
Downstream → applications that turn signals into decisions for businesses and consumers.
History shows that value tends to migrate up the stack. In space, that means the greatest opportunities are at the application layer — not in building rockets, but in using space-derived data to solve problems on Earth.
Where the Value Is
Three technology stacks dominate today: GPS, GeoINT, and SATCOM. Each progresses from infrastructure → distribution → applications, and history shows that value consistently migrates up the stack. The winners will be those who translate orbital signals into workflow-native decisions.
The investment data reinforces this. Since 2012, private markets have put ~$348B into ~2,200 space companies. Most of that capital flowed to satellites and applications (~86%), while launch attracted only ~12%, with the remainder in emerging areas such as stations, lunar, logistics, and industrials (~2%).
The takeaway is clear: while rockets grab headlines, the real commercial traction lies in software, analytics, and risk tools built on satellite data.
How Space Data Already Delivers
Climate & Insurance → Detecting methane leaks, verifying carbon credits, pricing parametric policies.
Logistics & Trade → Monitoring port congestion, optimising shipping routes, reducing supply-chain friction.
Geopolitics & Risk → Tracking conflict exposure, commodity routes, and systemic vulnerabilities.
The book frames this data as counter-cyclical: in good times it fuels growth; in crises it safeguards resilience. That makes it attractive to both CFOs and underwriters.
“Vision without execution is hallucination.”
Reflections for Builders & Investors
Look for unanswered questions. The best opportunities often start with simple operator needs: “Can we track this risk weekly?” or “How do we keep assets safe in orbit?”
Starship will change the game. Once SpaceX’s Starship becomes reliably reusable, launch costs will fall dramatically. That shift will open exponential opportunities — not just in rockets, but in the services, supply chains, and data applications built around them.
Resilience is the real product. Companies will pay for tools that help them survive shocks — from climate events to supply chain delays. The next wave of value will come from integrating AI into risk tools, turning satellite data into faster, clearer decisions.
Government is still the anchor customer. Even as private investment grows, government remains the largest funder and buyer in the space economy. Winning contracts or aligning with policy priorities is often the first step to credibility.
Learn by listening. Industry conferences aren’t just hype stages — they’re where operators, insurers, and regulators reveal what they actually struggle with. Solving those pain points is where the best opportunities begin.
Closing
Reading The Space Economy showed me just how early this industry still is. There are countless ways to get involved — building, investing, or researching — and all of them have the potential to make life on Earth better.
The real takeaway for me is that the biggest opportunities won’t come from building yet another rocket company. They’ll come from the software layer: translating orbital data into tools that businesses, governments, and communities can actually use.
We’re entering the software age of space — and that’s where the money will flow, and where the impact will last.
Starship’s tenth flight test taken by SpaceX.