Orbiting Profits: The New Space Economy Revolution
How Startups and Lower Launch Costs Are Unlocking a $1 Trillion Market by 2040
"We have only one planet" is one of the most popular environmental slogans.
We do have only one planet if we think in terms of resource exploitation, but if we reason in terms of optimization and innovation, space can do a lot for the sustainability of a single planet.
The world of space technology is often associated with the discovery of new planets and the realization of interstellar missions, but in reality, the impact of space technologies on life on Earth is already considerable and destined to grow exponentially in the coming decades.
The world already benefits tremendously from space technology, especially in terms of communications, positioning services, Earth observation, and economic activities related to government-funded space programs.
Humanity's capability in space has grown significantly since 1957 when Sputnik was launched.
Since then, we have witnessed the human landing on the moon, 135 Space Shuttle flights, the construction of the International Space Station (ISS), and the launch of over 8,100 space objects, including dozens of exploratory missions in every corner of the Solar System.
The applications of drones and satellites to optimize the use of terrestrial resources and reduce waste are at the forefront of a market, the Space Economy, which currently, according to data from the Observatory of the Politecnico di Milano, is worth around
400 billion dollars in global revenues, of which 73% can be attributed to the satellite industry (which includes telecommunication, navigation, and Earth observation services, as well as ground equipment products such as sensors, antennas, or GPS).
The investment opportunities in this sector are numerous, ranging from funding new companies that develop innovative space technologies to partnerships with government space agencies or investments in mega-constellations of satellites for communications.
From the "Old" Space Economy to the “New” Space Economy
For those who are new, here is a brief excursus:
The origin of the Space Economy coincides with the so-called Space Era formally began with the launch of the Soviet satellite Sputnik 1 on October 4, 1957.
Over the fifteen years that followed, one of the greatest peaks in space investment spending was reached by the Apollo program, at a total cost of $153 billion and a total of 400,000 people employed.
Among these were employees of many private companies that collaborated with NASA in the space program, such as Boeing, North American Aviation, and Whirlpool.
From 1957 until 1999, the Space Economy revolved mainly around scientific exploration missions, space stations, and the launch of scientists and satellites into orbit.
Shift in focus from the early 2000s
The Space Economy took on a new form in the early 2000s with the emergence of private companies and startups (just to name two, Jeff Bezos' Blue Origin specializing in reusable launchers and spacecraft and Elon Musk's now famous SpaceX) characterized by corporate profiles oriented towards independent extra-atmospheric activities unrelated to the space agencies of the states to which they belong.
This new phase is called the New Space Economy and extends the fields of interest of the SE to include asteroid mining (NASA estimates the value of minerals in the belt between Mars and Jupiter to be 700 quintillion - billions of trillions - dollars), space tourism, and climate technologies.
Space Economy in Numbers

With the explosion of over 2,000 commercial space companies, which are involved in building a wide range of space products including communication satellites, orbit launch vehicles, lunar and Martian rovers, orbital habitats, space production platforms, and space greenhouses, the world's commercial space capabilities are rapidly expanding.
It's not surprising that Space Economy startups have attracted the attention of investors, with the global capital raising of around 14 billion euros in 2021 and 8 billion euros in 2022.
According to estimates from the Space Foundation, the space industry's economy is worth approximately $447 billion globally, with 80% of it attributed to commercial space and monitoring activity. It is projected to continue its growth, with a 74% increase by 2030, reaching $642 billion (Space Economy Report - Euroconsult).
Morgan Stanley and UBS predict that this trend will bring the Space Economy to a value of $1 trillion by 2040.
Note that other organizations, such as Bank of America and United Launch Alliance, anticipate reaching this value by the end of this decade.
According to data collected by the Space Economy Observatory at the Politecnico di Milano, investments in the Space Economy are already significant worldwide. For space programs, the global government budget is estimated to be between $86.9 billion and $100.7 billion.
In fiscal year 2021 alone, the United States invested approximately $43 billion in the sector, while Europe spent $11.48 billion, followed by China, Russia, Japan, and India.
But it's not just "institutional" investments; private investments in Space Economy startups are also significant. In 2021, the Observatory estimates a total of €12.3 billion in global financing, with an increasing involvement of the stock market: 606 companies were listed through the SPAC (Special Purpose Acquisition Company) mechanism in 2021, compared to just one in 2020.