Analyzing the Role and Emerging Trends of the Space Launch Services Industry
20 Sep 2023
Recent achievements in the space sector have once again brought the space launch services industry into the limelight. Be it the successful landing of Chandrayaan-3 on the southern side of the Moon or SpaceX’s Falcon-9 and Starship program, the space sector has witnessed some amazing events in the past few years. The role of the space launch service industry has been instrumental in making these events successful.
Role of space launch services in space missions
The Universe, the celestial bodies, and space in general has always ignited curiosity in the human mind. In this quest, space missions have been undertaken since the 1960s and many ambitious missions are further lined up which will try to answer some of the important questions regarding the Universe. Space launch services form the backbone of such space missions. Space launch services include manufacturing and provisioning of launch vehicles and associated equipment which can carry both manned and unmanned spaceships to outer space. The expanse of this industry has widened to such an extent that several corporations and companies have come up which have specialized in providing space launch services. With advancement of technologies, increasing curiosity about the Universe, and establishment of various corporations, many different kinds of launch vehicles have been designed. The equipment and facilities associated with these launch vehicles have also been upgraded.
Important trends affecting the space launch services industry
A report published by Allied Market Research has highlighted the growth story of the space launch services market. The report states that the market is expected to rise at a fascinating CAGR of 13.4% in the 2023-2032 timeframe. The report puts forth several important factors and trends which will aid in achieving this growth rate. The most important trend, as per the report, is the growing application of space launch services in security and defense sector, agriculture, disaster management, and environment protection. Owing to this growth in applicability, the governmental support in the form of funding and personnel has both increased drastically in the past few years. This has further helped the market to explore new growth opportunities. However, the most exciting growth driver which can really open new dimensions for the market is the emergence of space tourism. Space tourism has compelled corporations to upgrade their launch vehicles and equipment to meet the new wave of demands from the global market.
Mergers, partnerships, and collaborations
The space launch service market has traditionally been dominated by government-owned corporations as the space exploration industry was the prerogative of the state only. Hence, corporations and agencies like NASA, NSIL, JAXA, Glavkosmos, etc., have been the dominant players in the industry. However, this has been changing slowly since the post-1991 globalization era. SpaceX, which has been a pioneer in commercial space travel, opened the gates for the private sector and since then, many companies have started investing in the space industry. Apart from this, many companies have entered into partnerships or collaborations for better research and development of launch vehicles and accessories. For example, in one of the biggest partnerships in the space sector, NASA announced in June 2023, that it was partnering with 7 US corporations to enhance space capabilities and technologies. The seven companies include Blue Origin, Space Exploration Technologies Corporation, ThinkOrbital Inc., Northrop Grumman Systems Corporation, Special Aerospace Services, Vast Space LLC., and Sierra Space Corporation.
The space launch service, to summarize, is a highly dynamic industry with many stakeholders and market forces shaping its growth trajectory. Increasing governmental funding and growing private investments in this sector will go a long way towards increasing the scope of this industry.
Authors Bio- Koyel Ghosh is a blogger with a strong passion and enjoys writing in miscellaneous domains, as she believes it lets her explore a wide variety of niches. She has an innate interest in creativity and enjoys experimenting with different writing styles. A writer who never stops imagining, she has been serving the corporate industry for the last five years.