Evolution of the Space Economy

The private space sector is expanding beyond its initial focus on sending satellites and experiments to low-Earth orbit, leading to the growth of a more diverse and formalized space economy. As defined by the Organization for Economic Co-operation and Development (OECD), the space economy encompasses a wide array of activities related to space exploration, understanding, management, and use. In 2023, the global space industry was valued at approximately $570 billion, a 7.4 percent increase from 2022. With the broadening of uses and applications in space, analysts project that this industry could potentially exceed $1.8 trillion by 2035.

However, the space industry faces challenges, including global economics, space debris, growing international competition, and security issues. The competitive aspect of space exploration poses safety concerns for the U.S., and its space companies are frequently targets of foreign intelligence. This industry requires specialized planning expertise and is creating new job opportunities. It is also becoming a significant player in land use and strategic planning in several U.S. communities. Planners should stay aware of the potential for continued growth in the space economy and the potential impacts it could have on broader economic and land use planning issues.