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The Space Economy

How satellite internet, launch cost reductions, and commercial space are creating a new trillion-dollar economic frontier.

A New Economic Frontier

The global space economy reached roughly $546 billion in 2023 and is projected to exceed $1 trillion by 2030. This growth is driven not by government space agencies but by commercial companies. SpaceX has reduced launch costs by a factor of 10 -- from roughly $10,000 per kilogram to orbit in the Space Shuttle era to under $1,500 with Falcon 9. This cost revolution has enabled an explosion of satellite deployment, space-based services, and commercial ambitions.

Satellite services -- communications, navigation, Earth observation, and weather monitoring -- represent the largest segment of the space economy. GPS, originally a military system, underpins an estimated $1.4 trillion in US economic activity annually. Satellite imagery enables precision agriculture, environmental monitoring, and military intelligence. The space economy is not about exploration -- it is about the infrastructure on which terrestrial industries depend.

The Space Economy | Model Diplomat