BEA Estimates Space Economy Impact, Satellite Market Forecasts Remain Strong
Top Stories from The Journal of Space Commerce for the Week Ending July 5
The U.S. Commerce Department's Bureau of Economic Analysis released new, updated, and expanded U.S. space economy statistics for 2017–2022 late last week.
The new statistics show the space economy accounted for $131.8 billion, or 0.5 percent, of total U.S. GDP in 2022. Real GDP grew by 2.3 percent in the space economy, faster than growth in the overall U.S. economy (1.9 percent). The statistics also show in 2022 the space economy accounted for $232.1 billion of gross output and $54.5 billion of private-sector compensation and supported 347,000 private-sector jobs.
Private industry employment for the space economy was 347,000 in 2022, and compensation was $54.5 billion.
Dr. Tina Highfill from the Bureau of Economic Analysis will be our guest on an upcoming episode of The Ex Terra Podcast.
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A couple of market reports dealing focused on satellite communications were released this week. First, we heard from Wise Guy Reports concerning the Satellite Communications Systems Market, which they project will grow to $250.61 Billion by 2032, registering a Compound Annual Growth Rate (CAGR) of around 8.61% during the forecast period (2024 - 2032).
According to the report, the satellite communications systems market is experiencing robust growth driven by multiple factors. Satellites play a pivotal role in providing reliable communication services across diverse sectors, and growing investments in satellite infrastructure by both government entities and private companies further propel market expansion.
A second market report released this week focused more narrowly on the maritime communications sector. According to Knowledge Sourcing Intelligence, the maritime satellite communication market is anticipated to grow from $4.903 billion in 2022 to $10.017 billion by 2029 at a CAGR of 10.75 percent.
This market is expected to grow significantly, with the introduction of new technologies and major players in the market. The maritime satellite communication system, with the use of satellite terminals, ensures constant connectivity of the vessels, also providing them with access to the internet, voice communication, remote monitoring, and other data transfer capabilities.
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With Starliner still docked to the International Space Station, we're not ready to think much about the decommissioning of the orbiting outpost, but NASA has had plans in the works for several years for the safe deorbit of the station.
This week NASA announced that it has awarded a contract to SpaceX to develop and deliver the U.S. Deorbit Vehicle that will provide the capability to deorbit the space station and ensure avoidance of risk to populated areas.
While SpaceX will develop the deorbit spacecraft, NASA will take ownership after development and operate it throughout its mission. The single-award contract has a total potential value of $843 million.
On the other side of that coin is technology that will help satellites stay in orbit and in service. This week, Starfish Space announced the signing a contract with Intelsat to begin preparations for a satellite servicing mission.
Sometime in 2026, a Starfish Space Otter servicing vehicle will dock with a retired Intelsat satellite as the first step in the process.
Initially, Otter will dock with and maneuver a retired Intelsat satellite in geostationary graveyard orbit. Following this initial operation, Otter will proceed to dock with and provide life extension service to an operational Intelsat satellite, using its onboard propulsion system to keep the client satellite in operational orbit for additional years of life.