Home News The annual revenue of the space industry is expected to reach $...

The annual revenue of the space industry is expected to reach $ 1 trillion by 2040, with launch costs set to fall by 95% | ANALYZE


A further reduction in the cost of access to space would create more opportunities for expansion and technological innovation, unlocking more in-orbit services, such as satellite broadband and production, the bank added.

Citi’s industry estimates are in line with forecasts released in recent years by Morgan Stanley, Bank of America and others.

The value of the global space economy will reach $ 424 billion in 2020, following a 70% increase in 2010, according to research conducted by the Space Foundation.

“Production revenues, launch services and ground equipment will account for most of the revenue growth in the satellite sector. However, the fastest growth rate is expected to come from new applications and space industries, with estimated revenues rising from zero to $ 101 billion during this period, “Citi said.

Read:   Rental companies fear that they will not recover their more than 400 planes from Russia. "We could witness the biggest aircraft theft in aviation history"

Private investment in space companies, especially venture capital, has steadily broken annual records over the past decade. Last year, space infrastructure companies received $ 14.5 billion in private investment, according to Space Capital’s quarterly report, which tracks about 1,700 companies.

A number of space companies went public last year through SPAC transactions, but most stocks are struggling despite the industry’s growth.

The changing market environment, with rising interest rates hitting technology and the actions of fast-growing companies, has led to a negative evolution of space industry stocks.

The shares of about a dozen space companies have fallen by 50% or more since their inception.

Read:   What US billionaire Warren Buffett recommends to those who want to protect themselves from inflation

Despite Citi’s optimistic forecasts, the bank stressed that many remain speculative in the industry, “such as space solar energy, lunar mining / asteroids, space / cargo logistics, space tourism, long-distance rocket travel and microgravity research and development and construction. ”.

“A similar analogy would be to try to predict the current value of the Internet almost 20 years ago, when the term smartphone was relatively unknown and before broadband Internet replaced dial-up connections,” analysts said.

If you like this article, we look forward to joining the community of readers on our Facebook page, with a Like below:

Previous articleThe European Union will force technology giants to give third parties access to software and hardware
Next articleCanada bans trade in luxury goods with Russia. What products are targeted