BACKGROUND OF SPACE TECHNOLOGY

The world already benefits greatly from space technology, especially in terms of communications, positioning services, Earth observation, and economic activity related to government-funded space programs. Humanity’s outer space capability has grown remarkably since 1957 when Sputnik was launched. Since then, we have witnessed humans land on the Moon, 135 flights of the Space Shuttle, construction of the International Space Station (ISS), and the launch of more than 8,100 space objects, including dozens of exploration missions to every corner of the Solar System. In March, the US announced an accelerated schedule to permanently return humans to the Moon in 2024. Many other nations are also focused on a return to the Moon. With an explosion of more than 2,000 commercial space companies, including those building communications satellites, orbital launch vehicles, rovers for the Moon and Mars, orbital habitats, space manufacturing platforms, and space greenhouses, the world’s commercial space capabilities are quickly expanding beyond our satellite industry, which over the last year already brought in more than $277 billion in global revenues.

Low launch costs will continue to dramatically change the economics of many space business models, enabling a new era of capabilities once thought prohibitively expensive.

One reason for this recent explosion in space-related activity is the plunging cost of launch to low Earth orbit (LEO). Launching to LEO in the past has been among the most expensive element of any space endeavor. Historically, costs have averaged more than $10,000 per kilogram of launched mass. Recently, however, space companies including SpaceX, Blue Origin, and United Launch Alliance (ULA) have been successfully pursuing reusable launch vehicle technology that promises to significantly reduce the launch cost to LEO. SpaceX’s Falcon Heavy now boasts the lowest cost in the industry, with a base price of $1,655 per kilogram to LEO.[1] SpaceX’s long-term ambitions, as well as that of many others, are to lower this cost to $100 per kiogram or less.[2] Such low launch costs will continue to dramatically change the economics of many space business models, enabling a new era of capabilities once thought prohibitively expensive.

Other technologies, such as manufacturing materials in space from resources found on the Moon, Mars, or asteroids, could further improve the economics of space activities by dramatically reducing the amount, and hence cost, of material launched from Earth. A prime example is sourcing rocket propellant in space from water-rich regions of the Moon or asteroids, which could lower transportation costs to locations beyond LEO.