In today's Finshots, we dive into the fascinating world of space technology, its potential to supercharge the global economy and the challenges that come along.

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The Story

There’s a place that makes three times more money than it budgets. And that place is none other than the space giant NASA which did the exact thing last year by driving innovation, creating high-paying jobs, and generating new technologies that benefit many industries. It helped the U.S. make over $75 billion.¹ The kind of money that could buy you a huge company like Spotify or even be enough to pay for all of India’s annual defence budget.²

But why talk about NASA today? Well, NASA is just part of this big interesting story brewing in the space economy. Because experts project that the global space economy could grow to $1.8 trillion by 2035—which is almost three times what it is today.³

So, with such huge amounts and growth rate on the talks, could space be the next big thing for the world?

Let’s make it simple.

See, the "space economy" is not just about rockets and satellites flying in space. Sure, those are important, but the real magic happens right here on Earth. Take GPS, if you want to know how. It helps us use apps like Uber and know the weather. It helps us make plans for fun weekends and hikes, too. And we’re quite dependent on it. Because in 2023, about half of the space economy was used for things like this, and by 2035, it could rise to two-thirds.

Countries and companies are noticing this well enough.

The U.S. and China are spending billions on satellites, mostly for national security, monitoring, and disaster response. By 2035, lots of government money across the globe is said to go to satellite tech. And since the early 2000s, space agencies have grown from 40 to 75. Even the UAE, which started its space program not long ago, has already sent an astronaut to space and a probe to Mars. That’s also the reason why more countries today want to be part of this space exploration.

So yeah, space is no longer an exclusive club.

And as things seem today, it could very well be the next big thing for the globe as more and more nations get involved.

Plus, one exciting bit of this popularity is satellite communications. Because companies like SpaceX and Amazon want to bring internet to remote areas using satellites. And by 2035, this part of the space economy could be worth $218 billion, up from about $140 billion today. And yes, more satellites could also mean cheaper and better internet for you and me.

So yes, GPS helps keep things like trade, money, and a lot of today’s world running smoothly.

And when we turn our focus to India, we see we’re growing in the space economy. In the last ten years, space activities added $24 billion to India’s economy through satellite launches, exploration missions, and advances in communications.⁴ And looking ahead, ISRO, India’s space agency, wants to increase India’s share of the world’s space economy to 10% by 2040.⁵

So, again – the space economy and its growth are for the win!

But let’s also look at some problems before we call it a day.

See, more satellites mean more traffic in space, and that can increase the risk of crashes. If satellites crash, they could make dangerous debris that might threaten other satellites, making space even riskier. Initiatives like active debris removal technologies, automated collision avoidance systems, and improved tracking of space objects are being developed, and the European Space Agency and private companies are already working on missions to actively remove space debris. Nevertheless, much more needs to be done. Currently, there are over 34,000 pieces of space debris larger than 10 cm and an estimated 128 million pieces smaller than 1 cm, all posing significant collision risks.

The regulatory landscape is also lagging. Because space is getting busier, but the rules are not evolving quickly enough to handle this rapid growth. There’s a need for robust regulations for space debris management, launch coordination, and international collaboration to ensure a safe and sustainable space environment. And without proper frameworks, new companies may struggle to compete if regulations favour established giants.

Moreover, the rise in satellite usage means cybersecurity is a critical concern. Satellites are central to our communication, financial systems, and even defence, which also makes them attractive targets for cyberattacks. And a single breach could have disastrous consequences—disrupting the internet, banking, or even national security.

Then there's the issue of equity. As more countries and companies enter space, it's important to ensure that the benefits of space technology are accessible to all, not just the wealthiest nations or corporations. This requires fair policies and collaborative efforts to share knowledge, resources, and opportunities.

The bottom line? Space could be the next big thing for global growth. But it won’t be easy. There are things to be addressed, rules to be formed, and things that need to change to make sure the world has a space policy that ensures a safer world – on the ground and in space – for today and tomorrow.

Still, as people keep working together, space tech could make the world better.

Who knows, we’ll see industries and tech in the coming years for space debris management, launch coordination, and rules for international collaboration that help the entire space economy run efficiently.

Do you think space could be the key to the future?

Let us know and until then…

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Story Sources: NASA.gov [1]; PIB.gov [2]; WEF [3]; The Hindu [4]; Business Standard [5]

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