Analyst: Space industry worth $1.8tn by 2035
January 28, 2025

Analysts at consultants McKinsey, along with the World Economic Forum reporting from Davos in Switzerland, say that the space economy is projected to be worth $1.8 trillion (€1.72tn) by 2035. “Space is no longer a distant frontier; it’s woven into the fabric of our daily lives, from the morning weather report on your smartphone to the delivery of your evening meal,” the report says.
As part of its research, the study drew on interviews with over 60 leaders and experts across the space sector and other segments to get a detailed view of the trajectory of space technology and its impact – often indirect – on a range of sectors.
“While mega rocket launches and record spaceflights are the headlines that capture the public’s imagination, routine rocket launches and satellite data services are, in fact, the product of decades of behind-the-scenes innovation,” said McKinsey senior partner Ryan Brukardt and Jeremy Jurgens, managing director, World Economic Forum. “And they are delivering greater benefits to a more diverse set of stakeholders than ever before—including in industries as varied as food and beverage; retail, consumer goods and lifestyle; supply chain and transportation; and even climate disaster mitigation.”
McKinsey talks of the space industry making headlines every week: “Be it a test of a new rocket system, the launch of an innovative satellite, or a robotic exploration mission safely landing on the moon, activity in space is accelerating.”
“We estimate that the global space economy will be worth $1.8 trillion by 2035 (accounting for inflation), up from $630 billion in 2023. This figure includes both “backbone” applications—such as those for satellites, launchers, and services like broadcast television or GPS—and what we term “reach” applications”—those for which space technology helps companies across industries generate revenues. Uber, for example, relies on the combination of satellite signals and chips inside smartphones to connect drivers and riders and provide directions in every city,” said the report.
“In 2023, backbone applications made up $330 billion, or slightly greater than 50 percent, of the global space economy, while reach applications represented $300 billion. The expected annual growth rate for backbone and reach applications is twice the projected rate of GDP growth over the next decade (exhibit). For comparison, the value estimates for space are similar to those for semiconductors (estimated at $600 billion in 2021 with 6 to 8 per cent annual growth into the 2030s and roughly half of the projection for the global payments industry (estimated to reach $3.2 trillion in revenues by 2027),” the study added.
“The growth drivers for the space economy include the need for greater connectivity via satellites, higher demand for positioning and navigation services on mobile phones, and increased demand for insights powered by AI and machine learning. These innovations are delivering greater benefits to a more diverse set of stakeholders than ever before, including companies in industries ranging from food and beverage to transportation. They may also help solve some of the world’s greatest challenges, such as climate change,” concluded the report.
Other posts by Chris Forrester:
- SES and Eutelsat possibly in line for C-band $bn bonus
- Consultant: “European satellite mergers are failing”
- Ligado attempts to unravel Inmarsat L-band agreement
- SpaceX complains over South Africa investment rules
- Vodafone, AST test video call game changer
- Eutelsat shares hit all time low
- SpaceX valued at $350bn
- Sky New Zealand suffering satellite problems
- Bank reduces AST SpaceMobile’s share target price