The U.S. space economy has evolved significantly over the past 70 years. What began in the 1950s as a fully government-supported sector has transformed into a dynamic ecosystem increasingly driven by private sector actors. In the 1960s, the first hints of corporate involvement emerged alongside government-led missions, as post-war political forces and technological advancements launched Sputnik and paved the way for U.S. remote-sensing satellites. Since then, a combination of Cold War necessity, public investment, and groundbreaking research has shaped the trajectory of the space economy, culminating in a modern industry in which innovation and competition among private firms play a central role. Today’s space economy is experiencing unprecedented growth, generating technological advancements, economic opportunity, and geopolitical influence. Valued at $630 billion in 2023 and projected to exceed $1.8 trillion by 2035, the global space industry is increasingly valuable to modern economies. From groundbreaking satellites to reusable launch systems, these advancements are as important to state economic interests as they are to global influence, security, and exploration. The United States has invested in this transformation more than any other country, allocating $73.2 billion to space programs in 2023 alone. This number is likely higher when combined with NASA’s budget. Historically, government investments and strategic policies have driven widespread innovation and enabled private companies to scale operations and develop transformative technologies. NASA’s early contracts with SpaceX, for instance, helped support the company’s development, and SpaceX’s technological breakthroughs, in turn, lowered barriers for new entrants in multiple sectors of the space industry, but only those not in direct competition with SpaceX.4 Payload providers can take advantage of SpaceX’s lower launch costs, but new launch companies have a harder time breaking into the market. Payload and satellite bus manufacturers are also facing a more challenging environment as SpaceX markets its Starlink bus for other purposes.
Sustaining the U.S. Edge in Remote Sensing, Launch, and Advanced Technologies for National Security (Kathleen Curlee – CSET)
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