/sci/ - Science & Math

https://www.cnbc.com/2022/05/21/space-industry-is-on-its-way-to-1-trillion-in-revenue-by-2040-citi.html

The space industry should reach $1 trillion in annual revenue by 2040, with launch costs dropping 95%, Citigroup analysts said in an extensive report published this month.

A further decline in the cost of accessing space would create more opportunities for technological expansion and innovation, unlocking more services from orbit such as satellite broadband and manufacturing, the bank added.

Citi’s estimates for the industry match forecasts published in recent years by Morgan Stanley, Bank of America and others. The global space economy’s value reached $424 billion in 2020, according to research from Space Foundation, having expanded 70% since 2010.

“Revenue from manufacturing, launch services and ground equipment will make up the majority of the revenue growth in the satellite sector,” Citi said. “However, the fastest growth rate is expected to come from new space applications and industries, with revenue forecast to rise from zero to $101 billion over the period.”

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

A flurry of space companies went public last year through SPAC deals, but most of the stocks are struggling despite the industry’s growth. The shifting market environment, with climbing interest rates hitting technology and growth stocks hard, have seen space stocks drop as well. Shares of about a dozen space companies are off 50% or more since their debut.