Global space economy tracking toward $944B by 2033: report

The global space economy, comprising all activities and resources underpinning the space market and space-enabled solutions, is on a trillion-dollar trajectory by 2033, according to a new report.

Novaspace’s 11^th edition Space Economy Report, released Jan. 9, predicts significant growth in “downstream applications” as a key driver behind growth from a $596 billion economy in 2024 to $944 billion by 2033. Downstream applications include space-based solutions and services delivering data and capabilities on Earth, such as navigation and mapping, communications and Earth observation, per the report.

By contrast, upstream applications encompass ground-based capabilities such as manufacturing and launch, as well as satellite constellation projects and activities. Government customers — primarily defense, but also civilian agencies – make up the bulk of the $60 billion upstream space market, with 69% of the share compared to 31% being commercial entities.  

The $157 billon downstream market, surging through advances in emerging technologies, flips this market demand breakdown, though. Commercial organizations, private companies and end users make up for 87% of downstream demand for services like satellite-based navigation and satcom. AI, cloud computing and enhanced data and processing are expected to accelerate downstream offerings, according to a Novaspace release on the report.

“Downstream applications are the main driver behind the projected $348 billion growth over the next decade,” said Lucas Pleney, Novaspace senior consultant and lead author of the report. “Satellite-enabled services, such as navigation, Earth observation, and communications, are becoming increasingly integral across diverse industries, including agriculture, logistics, and urban planning.”

Government spending in the space market historically trends lower, given the combination of civil spending budgets and costly, high-end government-owned assets and missions. However, U.S. agencies are increasingly leveraging commercial technologies and services, investing in the private sector, and partnering with industry in a variety of initiatives.

The diversity — and the convergence — of services, solutions, applications and approaches will create new opportunities, the report notes, accounting for much of the expected growth between now and 2033.

“Government investment remains a key factor in driving growth, with global military space budgets exceeding $64 billion. Defense spending continues to outpace civilian expenditures, underscoring the strategic importance of space in national security and international competitiveness,” the release noted.