Outer space is arguably closer to home than ever before, with big indications for the future of business. According to the World Economic Forum, by 2035, the value of the global space economy will reach $1.8 trillion. For context, said economy was worth $630 billion in 2023 and expected growth (3x) will well surpass that forecasted for the GDP.
This data comes from a 2024 report on space created by the World Economic Forum in partnership with McKinsey & Company. Our current moment, as report contributor Ryan Brukardt observes, represents an inflection point for the space economy. Not unlike the dawn of the internet, when its full future potential was unimaginable, Brukardt notes the growing prevalence of space technologies and their capacity to positively transform global business. Notably, the applications for space technology are much wider than people realize. The costs have come down (for example, on launches and satellites) while investment in space technology has increased, in both government and private sectors.
“Space isn’t just something ‘out there,’” says Paul McDonagh-Smith, visiting senior lecturer at MIT Sloan and Faculty Director of the immersive five-day Executive Education Business Applications of Space Exploration (BASE). “It’s all around us, and we are an integral part of it. The same perspective applies to the digital economy, where intelligence—both biological and artificial—flows seamlessly between the two interconnected worlds our organizations and societies navigate: the physical and the digital."
"Space isn’t just something 'out there.' It’s all around us, and we are an integral part of it."
How space is reshaping industries
Space is poised to propel business growth on Earth across industries. For example, agriculture is leveraging satellite data to improve efficiency and productivity. Space-based systems enable more reliable communication networks, improved logistics, and even advancements in disaster response. The energy sector is also benefiting, with satellites monitoring oil pipelines and offshore rigs, detecting leaks, and predicting maintenance needs to prevent costly disruptions. Renewable energy companies use space-based weather data to optimize solar and wind power generation, enhancing both sustainability and profitability.
The financial services industry is increasingly relying on space technologies for secure, real-time data transmissions that enhance global transactions, improve market analysis, and safeguard against cybersecurity threats. In the realm of transportation, space-driven innovations in global positioning systems (GPS) enable more precise navigation for ships, planes, and autonomous vehicles, reducing fuel consumption and improving efficiency.
Even healthcare is tapping into space assets, with satellite communications connecting remote medical facilities to urban healthcare centers for diagnostics and emergency care. Pharmaceutical companies are exploring microgravity environments aboard the International Space Station to develop new drugs and materials. As space technologies continue to evolve, their applications across industries will only expand, fueling innovation and economic growth in unexpected ways.
The space economy will also have significant implications for sustainability and inclusion. Work in aerospace science and research at MIT’s Media Lab—i.e. anticolonialism in space research, brain-computer interfaces, and self-assembling space architecture—further exemplifies the exciting diversity of what is possible.
Making the most of the forever frontier
The onus is on leaders across sectors to proactively engage with this potential. It is, according to the authors of the report, an opportunity that also implies responsibility. Their advice is that leadership:
- Envision the future. This vision should be industry-specific, acknowledging that space will undoubtedly impact every field and business. What preparations are possible now to capitalize on what’s coming?
- Go bold. Now is the time to “make big best” and create partnerships with space-related companies, research groups, and technology providers.
- Be involved. Important decisions are being made and engagement is critical. As the team behind this article affirms, “The imperative rests with leaders around the world and across industries to play a part in shaping the trajectory for space—and to do so at pace.”
McDonagh-Smith and NASA Goddard Chief Scientist Dr. James B. Garvin recently released an idea paper that offers an interesting model for conceiving of this integration. They suggest that digital exploration strategies, when applied to the exploration of space (the so-called “forever frontier”), might serve as “a framework for evaluating strategic business opportunities in space that today are either unimagined, too hypothetical to be attractive, or not measurable with existing metrics and approaches.”
For leaders looking to explore this and related topics in further depth, save your seat in Business Applications of Space Exploration (BASE), an immersive, five-day course on the MIT campus designed to help individuals working in the space exploration economy define the business vision, missions, values, strategies, workforce capabilities, and tactical toolkits for present and next era space exploration.