How Is the Private Sector Changing the Space Industry?
The Space Industry Is Changing. The government-funded, government-controlled space exploration era is slowly drawing to a close. Instead, private companies are taking over in an effort to open up space.
They are breathing new life into the industry, changing the way it operates & opening the world up to an entirely new way of thinking about space exploration. While it isn't exactly new, its previous players have now become household names, giving rise to others who want to break into the space industry.
Join us as we take an in-depth look at how the private sector is changing the space industry.
Evolution of Space Exploration: How the Private Sector came to Be
The First Phase
Space exploration began and later progressed in three stages. The first began between 1950 and 1969, when governments and sovereign states were the only key players. They ran the industry and were responsible for the manufacture and application of space technology.
The Second Phase
The next phase began around 1970 and lasted until the year 2000. During this period, private entities made their way into the space exploration scene. Major developments happened during this phase, primarily due to the framework set by governments during the initial stages.
The first policy that tried to open space to private companies was the Commercial Satellite Act of 1962. Unfortunately, it wouldn’t do much for the cause as it wasn’t comprehensive enough. It would later be replaced by the Commercial Space Launch Act of 1984.
This statute paved the way for private companies to manufacture, own and launch commercial satellites. It also gave private companies the mandate to oversee launches and granted them the necessary licenses and permits besides manufacturing satellites.
Another major reason that favored the entry of private firms into this scene was the digital age that the world went through during the early 1990s to late 2000s. We witnessed technological feats such as the internet and mobile phone development.
Landline telephones were soon phased out in favor of these handheld gadgets. Another key aspect of this phase was the manufacture and use of satellites, which led to space privatization.
The European continent was determined not to be left behind, setting up the European Space Agency (ESA) in 1975. It was tasked with facilitating cooperation between European countries interested in space research.
At first, three countries dominated the industry. These were France, Italy, and Germany but were later joined by other European states such as Hungary and Austria.
The Third Phase
The third phase began in 2000 and is where it is at the moment. More and more companies are entering the space economy. Currently, the industry is worth over $400 billion, with manufacturing and application of space technology dominating the larger portion.
Thanks to the national interest in the sector, companies find it much easier to secure funding for their space research and projects. In addition, artificial intelligence and the introduction of small satellites have helped refine the sector.
The Private Space Sector
Below are some of the roles the private sector plays in the industry.
Downstream Application
The downstream sector involves the manufacture and operation of ground equipment and satellites. It also entails using and applying data collected from satellites, majorly for commercial purposes.
Manufacturing and Launching
Here we have created various equipment and technology for use in exploration. These include rockets and descent vehicles.
Satellite Manufacturing
Focuses on the manufacture and assembly of satellites. These are used for communication, the internet, navigation, and mapping.
Ground Equipment Manufacturing
Ground equipment manufacturing deals with the creation of technology used by staff during missions. These could be anything from control stations to portable terminals.
Space Tourism
We are in the age of commercial space tourism, with companies gearing up to begin flights into outer space. Although this project is still in the development phase, we can anticipate results by the end of this decade.
Examples of private firms include:
SpaceKnow
SpaceKnow is a Czech space startup based in New York. The company uses machine learning for earth observation, making it the most comprehensive authority in the world. By incorporating Artificial Intelligence (AI), the company provides clients with the most accurate results for better planning and decision making.
Planet Labs
Planet Labs is another earth observation-oriented startup. The company uses satellites to take earth images, later used by businesses and even governments. They are useful in:
Disaster management
Monitoring climate change and
Agriculture and farming.
Creotech Instruments
Creotech is a Polish startup offering a variety of solutions for space projects. The company specializes in geospatial data processing and manufacturing. They have over 35 years of experience in the industry, spearheading 14 missions with 4 of them for the ESA.
Relationship Between Private Sector and ESA
Unfortunately, we are still a considerable distance from private entities dominating the space industry. Governments still have a huge share, especially since they are among the major funding providers. To add to that, state corporations such as NASA and ESA provide the legal framework for the private sector, making them the regulatory bodies.
The European Space Agency launched a competition dubbed the ESA Copernicus SpaceLeap Challenge. The program is a partnership between ESA and Copernicus Masters to promote innovation for environmental monitoring and awareness innovation.
The competition is named after two fleets of European satellites: Gallileo(GPS) and Copernicus (EO). Its primary purpose is to support the commercialization of these fleets since the EU spent billions to develop them.
To participate, candidates must be from scientific institutions, permanent residents of countries that have signed the Copernicus Data Access and Earth observation agreement, or enterprises. They then submit their proposals and await vetting.
The winner will receive €10,000 in cash, while the top three ideas will each get €5,000. The last call for submissions is July 11, 2022. The ESA also has an open competition where private entities can secure contracts with the organization.
They must submit a detailed proposal declaring interest in a particular field. It should be in accordance with the ESA’s rules and requirements to be valid. There are two categories under the open competition:
Feasibility studies
It comes with 100% funding and provides the necessary framework for creating and setting up new sustainable applications. They also have to be user-driven and follow the ESA’s requirements.
Demonstration projects
This category deals with implementing demonstration projects. Copernicus Masters is usually steered towards incubation in ESA BIC. It comes with a no-equity startup accelerator with a 50K grant attached.
The Private Sector’s Impact on Space
The private sector is finally injecting the long-awaited innovation into the space industry. As a result, innovations will continue to develop and change. We will also likely see more and more additional efforts in the coming years to commercialize this crucial industry on new fronts.
The future of space tourism and the mass commercialization of space is nearer than we think. If you would like to learn more about space, please visit our website to sign up for our Vytah Space Industry Conference. You’ll get the chance to hear from industry professionals and gain more insight into the future of space exploration.