Ibadan, 10 May 2024. – A new report by the World Economic Forum (WEF) and McKinsey has estimated that the global space economy will grow from $630 billion in 2023 to $1.8 trillion by 2035 as it continues to serve an increasingly connected and mobile world.
The traditional space economy, or backbone applications of space, including satellites, launchers and services like broadcast television (TV) or GPS, accounts for slightly greater than 50% of the global space economy in 2023, or $330 billion. However, space also plays an important role in enabling companies across non-space industries to generate revenues. Space’s reach is visible across these non-space industries that rely on space technologies, and the market represents $300 billion in 2023, roughly the other half of today’s space economy.
However, despite the estimations, macroeconomic and industry-specific factors may compound and impact the supply and
demand of space technologies by 2035. Furthermore, two primary factors; technological evolution and financial
competitiveness, can impact the global space economy estimations positively or negatively. This is as industry projections differ on the potential adoption of commercial technologies and their relative share vis-à-vis government-owned
systems.
On the positive side, increased access to and adoption of space technologies could lead to improved estimates of the size of the space economy of up to $2.3 trillion by 2035. Sub-factors like improved access to space data and reduced cost for space entry could enable new revenue streams and full space accessibility, thereby accelerating the whole of the space economy. On the other hand, risks to the space economy, such as constraining regulations or diminished demand, could cap space economy estimates at $1.4 trillion by 2035.
In developing the report, WEF and McKinsey engaged with more than 60 thought leaders from the public, private and non-profit sectors, representing more than 15 industries and most parts of the globe.
