Space Economy: a new paradigm of growth, innovation and sustainability

In recent years, the Space Economy has become increasingly prominent in the global landscape, redefining the boundaries of the space industry and opening up new opportunities for innovative businesses, institutions and start-ups. This sector, which was once dominated exclusively by government agencies and large aerospace companies, has now opened up to a multitude of private actors, stimulating unprecedented growth. The gradual lowering of economic and technological barriers to access to space has made this area more practicable, transforming it into a new frontier of industrial and commercial development, including in Italy.

This is explained by Professor Antonio Ghezzi, Co-Scientific Director of the Space Economy Observatory at Politecnico di Milano and Director of the International Master in Digital Innovation and New Business Design at POLIMI Graduate School of Management, who in this interview guides us through an in-depth analysis of current trends, challenges and future opportunities in an increasingly strategic sector at global level.

Space Economy: what is meant by this concept today?

The Space Economy can be defined as the set of economic activities related to the development of technological infrastructure for space and the use of satellite data and services for terrestrial applications. Traditionally, the space industry has focused on the design and construction of satellites, launchers and data reception stations, but in recent years we have seen a profound transformation in the sector in which today, in addition to the creation of these infrastructures, there is a growing emphasis on the generation of value-added services for businesses, based on satellite data and their integration with digital technologies. This new approach enables Space Economy players to develop applications that make a real impact in sectors such as defence, logistics, transport, agriculture, the environment, insurance, and more.

Why has the Space Economy become so relevant?

In recent years, the Space Economy has acquired increasing importance for several reasons. First, the removal of economic barriers to access to space: the miniaturisation of satellites has enabled the emergence of nanosatellites and new satellite constellations, making space more accessible and drastically reducing launch costs, which have risen from about $20,000 per kilo 20 years ago to the current $2,000 per kilo. Moreover, the increasing demand for satellite data from key sectors, such as telecommunications and security and environmental monitoring, has made the space economy a strategic asset for many countries.

Who are the main players in the sector and how is Italy positioned on the international scene?

The United States dominates the industry with companies such as SpaceX, Blue Origin and Virgin Galactic. Due to the current geopolitical context, the US is no longer followed by Russia, but China, which is however operating with a very secretive strategy: it is increasing the number of launches and missions without, in fact, any real transparency at international level. At the same time, India is emerging as an increasingly important player, thanks to successful missions and optimisation of launch costs.

In this scenario, Italy plays a key role: it contributes significantly to the ESA (European Space Agency) budget and stands out at a global level, where it ranks among the top ten countries in terms of activity in the space sector thanks to a complete supply chain, ranging from components to the creation of satellites and launchers. Turin, in particular, is a centre of excellence for the development of space infrastructures; suffice it to say that 50% of the modules of the future lunar colony are currently being built by Thales Alenia Space Italia in the Piedmontese capital.

What are the current trends in the Space Economy and which technological innovations are driving its growth?

One of the main trends characterising the Space Economy is the increasing industrialisation of satellite production. While satellites used to be unique, custom-designed devices with highly specialised technologies, we now see large-scale production with standardised, interchangeable components, similar to consumer electronics. This has enabled the creation of constellations composed of thousands of small satellites, increasing the redundancy and reliability of communications and data collection.

Another crucial element is the redefinition of the space business model. In the past, the space industry focused exclusively on the construction and launch of satellites, leaving their management and application to other sectors. Today, however, companies in this area are turning into real service providers, seeking to develop commercial applications that can justify the initial investment. The goal is to create an ecosystem of space services that have an immediate impact on everyday life and economic activities in other sectors.

What should we expect for the future?

For the future, it is possible to foresee an increasing focus on the regulation of space, which has now become necessary. The risk of low-orbit congestion is real, with tens of thousands of active satellites leading to collision risks and a long-term sustainability problem. In this scenario, it will be crucial to work to rationalise the current efforts of this “space race,” defining its objectives and developing the appropriate skills to achieve them.

What are the particular skills required by the industry?

The evolution of the Space Economy requires a new approach to professional training. It is no longer enough to have high-level engineering expertise; it is also necessary to develop a strategic and managerial vision to understand the economic value of satellite data and their application in different industrial sectors.

“Every company needs a space strategy”: today, any organisation must begin to wonder if and how it can integrate space data into its business model. In this sense, one of the key challenges is to create professionals who can combine technological skills with business development and management skills. This means that training will need to be increasingly geared towards providing tools to analyse the market, create innovative business models and understand the geopolitical and regulatory implications of space development.

The Space Economy Observatory of Politecnico di Milano, in this context, offers analytical tools to understand market dynamics and create new opportunities. POLIMI Graduate School of Management also offers industry-specific, high-value courses - such as the Executive Course in "Doing Business in The Space Economy - from Technology to Services" - that combine specialised skills with elements of business strategy and innovation management.

At the basis of this commitment, there is a clear and well-defined Purpose: to ensure that the development of the Space Economy is guided by a sustainable vision and oriented towards the wellbeing of society. Space technologies should not only be seen as tools for profit, but as opportunities to improve life on Earth by supporting environmental monitoring, natural resource management, and the response to climate change; through multidisciplinary, socially impact-oriented training, it will be possible to build a truly sustainable and effective Space Economy, for everyone.