Years ago, a longtime resident of Manhattan was baffled as to why numerous young people were moving there, despite the exorbitant rents they would have to pay. Moreover, they could easily have rented larger apartments in the outer boroughs for less money. One day, his curiosity got the better of him and he approached one of these young people. “Excuse me,” he said. “Please tell me why so many young people want to live in Manhattan? What’s so great about living there?”
Surprised by the question, the man responded, “Why, Manhattan is where it’s at.”
That answer said it all, but it needs to be updated. Nowadays outer space is where it’s at, and that won’t change any time soon.
Money Talks
Anyone who is skeptical about that, consider this amazing statistic which proves the point: The global space economy reached $596 billion in 2024, according to an article on Zero Hedge, and it’s projected to grow to $944 billion by 2033. Who knows? Considering how quickly technology is progressing, it may even exceed those estimates.
“Space economy” is a small phrase, but it packs quite a punch. It includes “government agencies and private companies involved in the production and launch of satellites and spacecraft, data generation, Earth-based infrastructure, R&D programs and more,” Zero Hedge says. There are already more than 10,000 satellites orbiting the Earth, and the only change expected in this number is that it will keep on increasing.
Most of us don’t think about space very often, but business does because it’s a huge market, increasingly playing a crucial role in our day-to-day lives, in our work and play, and in our efforts to improve life for ourselves and others. It has become so established that we tend to take it for granted.
Among the numerous applications made possible by space technology are weather-forecasting, remote-sensing, satellite navigation systems, satellite TV, and much more. Combined, these generate total revenues of $308 billion and make up the largest segment of the space economy market. And satellite services are generating an additional $137 billion in revenues per year.
The New Kid On The Block
Until Elon Musk came on the scene, NASA was essentially the only game in town as far as space goes. NASA, and it alone, launched the satellites and rockets that carried equipment and astronauts into space.
Musk and SpaceX, the company he founded and heads, changed that by developing reusable rockets, an idea conceived of long ago but so complicated that it was thought to be impossible to realize. Nevertheless, they’ve become a reality, and reusable rockets have dramatically lowered the costs of the space economy. As prices drop the industry flourishes.
SpaceX controls about half of this market. It is driving growth in the industry more than any other company and in the process, has become very profitable. SpaceX reported a profit of $23 billion in 2023, according to NASDAQ. The company makes $14 million on every rocket it launches, even though it charges only half of what NASA does.
SpaceX had revenues of $13.1 billion in 2024 with its Starlink, the high-speed Internet service it provides to remote areas, generating $8.2 billion of that, according to Reddit. It’s estimated that Starlink’s revenues will grow to $11.88 billion in 2025. Starlink does more than that. Last fall, it offered free Internet services to residents of areas that lost power following Hurricane Helene; that was not only helpful but, in some cases, helped save lives. SpaceX is not publicly traded, although many investors are anxiously waiting for it to be.
Packing A Punch
None of the other private firms in the industry have the clout or the capabilities that SpaceX does. However, several of them are starting to catch the attention of the public. One of these is Intuitive Machines, which is developing a new lunar lander.
According to researcher and author Brooks Agnew, “it aims to access the Moon’s south pole, where it’s believed there are deposits of frozen water, ice and Helium-3, which, if harvested, could transform future energy sources.” Being able to access those resources could be very important to astronauts on future Moon missions; they could also have important commercial benefits if brought back to Earth.
And another is Texas-based Firefly Aerospace, which claims a new milestone in space exploration. Firefly claims it is “the first commercial company to execute a fully successful soft-landing on the Moon.” As technology improves and prices decline, missions like this will become more frequent.
Many countries have already gotten into this business. According to a study that appeared in The Space Report, a highly regarded publication that covers space exploration and related matters, 2024 set space flight records for the fourth consecutive year, with 259 launches worldwide – an average of one attempted launch every 34 hours. And it’s anticipated that the pace of launches will continue to rise this year.
According to the Report, “The U.S. dominated the launch cycle in 2024, outpacing China by more than 2-to-1. Meanwhile, Russia significantly increased the number of satellites it deployed into Earth orbit, rising from 21 in 2023 to 98 in 2024.” Other countries increasing their activities in space include: Japan, France, Germany, Italy, India, and the UK.
Joining The Bandwagon
Both small and giant companies are also joining this club. Some of them are well known and others not – at least not yet. Many are based in the U.S. and others abroad. Among them are:
*Blue Origin, the Jeff Bezos company developing a space tourism business and launch vehicles;
*Boeing and Lockheed Martin, giants in the aerospace industry that now are also focusing more attention on satellites and launch systems;
*Virgin Galactic, best known as a space tourism company; and
*Rocket Lab, which is considered an up-and-coming company gaining recognition for its smaller but more frequent satellite launch capabilities.
The technology developed by these and related companies could be vital to the projects defense companies are working on. They also could be important to developing commercial products used by the public, helping them stay ahead of competitors and keeping prices down.
Despite all that’s been learned about rocket science and launches, these craft still need to be perfected. On March 6, SpaceX lost contact with its Starship Rocket, the second consecutive Starship failure this year.
On a somewhat related matter, Jewish-American billionaire and tech entrepreneur Jared Isaacman just made space history. He became the first civilian to conduct a spacewalk and safely return to Earth. The SpaceX Dragon craft he flew on took him further into space than any human had traveled in five decades.
Meanwhile, airlines are planning on a new generation of planes that will be both bigger and much faster, making cross-country and cross-Atlantic flights in a fraction of the time that it takes now. When introduced, they will make it possible not only to ship cargo overnight but in some cases the same day. And they may give rise to a new generation of travel and tourism, making it possible to meet a client in London, dine in France, and return to the States before the end of the day. Would you agree that Manhattan has met its match?
Sources: AI Overview; bloomberg.com; statista.com; thespacereport.com; Zero Hedge.com
Gerald Harris is a financial and feature writer. Gerald can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.
