WEF says space economy will triple in size to $1.8trn by 2035

The global space economy is set to undergo a monumental transformation, with projections indicating that it will surge to a staggering $1.8 trillion by the year 2035. This forecast, based on research conducted by the World Economic Forum (WEF), represents a substantial leap from the current value of $630 billion as of 2023. The implications of this exponential growth extend far beyond the boundaries of our planet and could potentially address some of the most pressing challenges faced by humanity. Nikolai Khlystov, the Lead Space Technology Analyst at WEF, shed light on the multifaceted dimensions of the evolving space economy in a recent interview on CNBC Africa. The concept of the space economy encompasses a broad spectrum of activities, ranging from satellites, rockets, and ground stations to data transmission costs between these entities. Khlystov highlighted the pivotal role played by data in enabling various terrestrial businesses, emphasizing the interconnectedness of space-based technologies with our daily lives. Among the key catalysts driving the anticipated growth in the space economy, rockets are poised to play a paramount role. Khlystov elucidated that the market is projected to triple in size over the next decade, propelled by advancements in state-sponsored activities, commercial communications, positioning, navigation, timing, and infrastructure development. The surge in infrastructure-related operations, including satellite and rocket construction, is expected to experience a near quadrupling in value, underlining the expanding horizons of commercial space enterprises. Moreover, the burgeoning space economy holds promising prospects for addressing global challenges on Earth, as Khlystov underscored. The utilization of space-based technologies in disaster response, emergency services facilitation, climate change monitoring, and resource optimization is poised to revolutionize our approach to mitigating crises and enhancing sustainability. From predictive analytics for wildfire management to monitoring methane emissions and rising sea levels, space technologies are paving the way for a more resilient and eco-conscious future. Despite the transformative potential of the burgeoning space economy, considerations of ownership, regulation, and inclusivity loom large on the horizon. Khlystov pointed to the diversification of investments in space activities, with a growing number of countries viewing space as a strategic domain for engagement. The democratization of space exploration and utilization will be pivotal in ensuring equitable access to the benefits of space technologies worldwide, thus bridging socio-economic gaps and fostering global collaboration. Key stakeholders, from venture funds to institutional investors, are increasingly recognizing the significance of space as a driver of socio-economic progress and innovation. The imperative for governments to implement regulatory frameworks that balance commercial interests with public welfare emerges as a critical aspect of navigating the evolving landscape of the space economy. By fostering international cooperation and leveraging space technologies for societal good, nations can harness the transformative power of the space economy to foster a more inclusive and sustainable future. As the trajectory of the space economy continues to ascend, the opportunities for groundbreaking discoveries, socio-economic advancements, and environmental stewardship appear boundless. The convergence of innovation, collaboration, and visionary leadership will be instrumental in steering the course towards a thriving space ecosystem that benefits humanity at large. With a steadfast commitment to responsible exploration and utilization of outer space, the potential for a brighter future both on Earth and beyond seems within reach.