The space economy is anticipated to exponentially grow to a staggering $1.8 trillion by 2035, according to a report from the World Economic Forum in partnership with McKinsey & Company.
The report titled “The $1.8 trillion opportunity for global economic growth,” said that this economic explosion is expected to percolate almost all industries across the globe while proffering solutions to the world’s most formidable challenges.
According to the report, the space economy’s worth will rise from $630 billion in 2023 to an astronomical $1.8 trillion by 2035, enjoying an average growth of 9 percent substantially surpassing the growth rate of global GDP. Furthermore, non-traditional players, like ride-hailing apps, will exponentially benefit from the space economy.
Specific industries projected to contribute over 60 percent to the space economy’s growth include supply chain and transportation, food and beverage, state-sponsored defence, retail, and digital communications.
These industries would generate billions in space-related revenue. The report also emphasises the broader impacts of this economic revolution. It accentuates how space will play a crucial role in cushioning global challenges like disaster warning, climate monitoring, improved humanitarian response and more widespread prosperity.
The future looks promising, with countries like Japan, Peru, Saudi Arabia, and Thailand, including India, investing heavily in space initiatives, the report added. It also highlighted the role of the private sector, which continues to drive innovation and access, particularly in in-orbit inspection, maintenance services and commercially funded space stations.
The space impact transcends rocket science, intertwining inextricably with our daily activities such as forecast predictions, dinner delivery, and even the utilisation of smartwatches.
The report outlined that industries such as supply chain and transportation will rely heavily on satellite and other space technologies to offer cutting-edge services.
This report was crafted from the insights of over 60 thought leaders from diverse sectors and regions. It provides a deep understanding of the space economy, highlighting factors from commercial services to defence applications.
Crucially, it is noted that every industry can be part of driving the space economy further by engaging in standardisation and harmonisation, improving accessibility, and raising public awareness.
How rapidly the space economy expands will depend upon the trajectory of technological innovation and financial competitiveness, but if all goes well, it could reach an estimated worth of $2.3 trillion by 2035, the report said.
