Space is no longer the sole domain of governments and defence and aerospace companies. According to a report published by McKinsey Quarterly, startups that work around space tech may stand to gain the first-mover advantage.
The space economy was valued at $469 billion in 2021, up 9% from 2020, the highest recorded growth since 2014, the report said, citing the Space Foundation<\/a>, a not-for-profit organisation.
Space is no longer the sole domain of governments and defence and aerospace companies. According to a report published by McKinsey Quarterly, startups that work around space tech may stand to gain the first-mover advantage.
The space economy was valued at $469 billion in 2021, up 9% from 2020, the highest recorded growth since 2014, the report said, citing the Space Foundation<\/a>, a not-for-profit organisation.
US Space agency NASA<\/a>'s Moon to Mars activities, investments in climate change research and technology, and other work generated more than $71.2 billion in total economic output during the fiscal year 2021.
The costs for heavy launches in low-Earth orbit<\/a> (LEO<\/a>) fell from $65,000 per kg to $1,500 per kg in 2021—a more than 95% decrease.
According to the report, private investment in space technology topped $10 billion in 2021, an all-time high and a 10-fold increase over the past 10 years.
Innovations in technology, such as 3D printing and computer-aided designs of machine parts, have been helpful in streamlining the manufacturing process of rockets, thus reducing costs.
Another reason for the decrease in the cost of space exploration<\/a> is better efficiency. The development of reusable rocket parts by SpaceX<\/a> has aided the drop in costs and increased the frequency of launches.
Government satellites, usually deployed in an orbit<\/a> far from the earth<\/a> and costing upwards of $1 billion, are now being replaced by constellations of low-earth orbit satellites that cost about $100,00 each.
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