The SpaceTech Market Is Greater Than We Think
Original Article by SpaceTech Analytics
The SpaceTech industry comprises a wide variety of spheres: from companies that study propulsion and manufacture engines to companies that develop medicine for astronauts; from those that only produce specific materials to those that design whole launch systems. Since it is an extremely broad industry tag, there are many companies that do not reach a high scale of space activities but touch upon space-related and applied technologies, e.g., satellite services. The SpaceTech market is defined not just by the companies with space as the main purpose but also countless other companies and funds that either develop specific space products or improve their effectiveness through the development of space-related technologies. So the SpaceTech market is bigger than most are aware of.
Companies Not Normally Considered SpaceTech
SpaceX is, probably, the first space company that comes to mind, which t is not surprising because in terms of recent capitalization at $100B, it is, perhaps, the largest one. But there is a huge list of other companies, which are designing, developing, and incorporating new technologies for the space industry. This list includes some unexpected companies. For instance, the Intel Corporation is collaborating with the European Space Agency on the PhiSat-1 mission. It is the first company to provide an AI-based chip, designed to improve the efficiency of sending Earth observation data back to Earth for a space probe.
Amazon is involved with a project to launch a constellation of low-Earth orbit satellites to provide accessible and sustainable connectivity to most of the population. While it is similar to what SpaceX and OneWeb are doing, Amazon claims that its technology is designed in a safer and more effective way. Jacobs Engineering Group has a broad portfolio of customers, but they have had a well-established space program for many years, engaging in such initiatives as flight-software development, avionics-systems integration, and lab construction as part of NASA’s Space Launch System.
SpaceTech Projects of Non-Space Companies
The SpaceTech industry is experiencing rapid growth and is gaining momentum even among entities that were not space-related initially. Out of our Top 20 verge SpaceTech companies, we picked those which have recently entered the market and contribute to the industry.
The More Investment Opportunities The Better
At least three exchange-traded funds (ETFs) and seven special purpose vehicles (SPVs) have emerged in the SpaceTech sector during the past 12 months. The numbers may not seem that impressive, but there are hundreds of millions of dollars invested in them. These entities contribute greatly to the growing industry as they are bringing more funds and participants to the market. The number of such entities can be expected to increase because the sector receives more investment every year.
SPVs Becoming More Important Financial Instruments in the Industry
A special-purpose entity (or a special-purpose vehicle/SPV) is a special-purpose company, or "project company," created for a specific project or purpose. An SPV allows more effective management of individual business processes, financial flows, or even raising funds.
Currently, there are several different SPV initiators, who forward the interests of companies in the specific parts of the SpaceTech market. Some of the examples (with their parent company in parentheses) would be Space Capital SPV Fund (Space Capital), Space Fund Voyager Space SPV (Voyager Space Holdings), Type One SpaceFund Co-Invt SPV a series of Helios Holdings Master (SpaceFund), Axiom Space PML SPV 1 (Axiom Space), IF SPV 1st Investment Partnership (Ispace).
Non-SpaceTech Industries Qualifying for the SpaceTech Market
The interconnectivity between many industries is growing. Thus, when analyzing the SpaceTech market, discussion about companies focused on activities that support or could prove useful to the SpaceTech industry is unavoidable. As such, companies that deal with other innovative sectors such as biomedicine, robotics, AI research, drones, etc. often enter into partnerships with each other and with SpaceTech companies, yielding profitable synergies for both partners. However, not all such companies can be analyzed in terms of their connection with the SpaceTech industry because some of these partnerships do not involve SpaceTech. Thus, while the market can spread beyond the constraints of the industry (and this should not be overlooked), not all such companies should be assumed to be SpaceTech-related.
Significant Prospects for Growth and Investment in SpaceTech
As discussed above, companies can be connected to the space industry in many different ways. The number of such companies is so high that it is impossible to measure it manually. That is why every analytics company comes up with a specific method, which must be based on some software and/or website, and no method is perfect. Obviously, some relevant companies may be missed out, and some may be analyzed but are less relevant. Regardless, there is still a very large number of companies that are on the front lines of the space industry, with formidable market capitalization and investment. We are sure that our methodology, described in a special report, will capture the ones of most interest to investors.
With the burgeoning interest in the SpaceTech sector resulting from both the profit-potential of investing in the industry and growing media coverage, we expect that the market will continue to grow. Such growth would affect not only the finances of the market but its structure as well. This area of business continues to grow, with new subsectors appearing yearly if not more often. The new subsectors expand the overall borders of the SpaceTech industry, broadening the horizons. Such an expansion, in turn, positively affects market growth, thus, feeding the cycle of growth in the overall industry. These new subsectors, which we strive to identify as soon as they appear, will provide some of the best opportunities for investment as acorns grow much faster than oak trees mature.