Surviving the Shakeout How LEO Satellites Are Shaping the Future of the Space Industry

In recent years, the arrival of well-established commercial launch services has brought launch costs down significantly lowering the barrier to entry. This has opened the market to new players and innovators in the low Earth orbit (LEO) satellite industry. In parallel with reduced launch costs, satellites have decreased from the size of a bus to something you can hold in your hand. The combination of lower launch costs and smaller satellite size is reducing the overall mission cost. Gone are the days of space missions belonging only to space agencies such as NASA and legacy satellite companies.

Commercial space applications are rapidly growing in non-space industries such as energy and mining, agriculture, automotive, telecom, medical and education. Companies in these industries are investing in space to differentiate and expand service offerings to diversify revenues. This “Space-for- Earth” economy industry disruption is driving new use cases, capabilities, and users for satellite-based data. There are many examples of the space sector already playing a role in non-space industries. Geospatial satellite technology helps the mining industry by identifying areas for oil exploration and providing imagery of mining sites. Global positioning systems (GPS) satellite technology guides rideshare services such as Uber and Lyft and as the automotive industry moves towards a driverless future, the accuracy of maps becomes a priority. 

Satellite data helps the agricultural industry make more informed crop development decisions by improving weather forecasts.   Satellite technology is changing access to healthcare for remote regions worldwide and satellite data is advancing medical knowledge.The private sector is increasingly and actively securing assets in space with these efforts driven by the need for internet access and data. We expect exponential growth of this data-based, Space- for-Earth economy and we expect the emergence of a “Space-for- Space” economy with space-based services and products to support life in Space.