The space sector’s investment potential remains unquestionable in spite of the smattering of high-profile commercial ventures that have not met Wall Street’s expectations. Public and private investors continue to be drawn to the sector, recognizing the integral role space-based assets play in virtually every facet of the economy and, particularly, in the defense of national security. The United States already depends heavily on space services and technologies. This reliance will magnify as information and communications become even more embedded in the economic fabric and proliferate weapons and intelligence platforms.
The U.S. has a critical interest in promoting the development of space technologies and operational capabilities to sustain security objectives and enhance the space industry’s global competitiveness. In the current security campaigns, space assets are supporting military operations and homeland defense initiatives on an unprecedented scale. Civilian and military planners continue to aggressively evaluate opportunities to integrate air, land and space assets. Efforts to fashion integrated networks will pave new avenues of public and private sector cooperation and provide new financial resources for niche providers. Emerging technologies such as reusable launch vehicles for commercial and military missions, on-board satellite processing and data storage and laser/optical/microwave techniques to improve space-space, space-ground and space-air acquisition, tracking and communications, are just a few areas expected to experience significant growth over the next decade.
Space mergers and acquisitions are expected to be robust across all tiers of the industry, as traditional space giants look to secure competitive advantages and streamline costs, middle-market companies augment capabilities and broaden customer bases and smaller providers build critical mass to take advantage of the industry’s growth. Regulatory changes over the past few years have loosened restrictions, encouraging industry innovation and offering the potential for global partnerships. In addition, space subsystem and component suppliers are pursuing strategic alliances and consolidation opportunities to develop and finance technologies and solutions. In the remote sensing industry for example, niche providers are teaming with traditional imagery companies to create comprehensive suites of products and services. With ongoing budgetary concerns and the government’s mandate to outsource to commercial imagery companies, these new teams will be well positioned to capture a share of the expanding marketplace. The space industry’s future will be marked by an expansive framework of partnerships between private and public sector forces, aimed at leveraging research and development funding and speeding to market solutions dynamic space technologies and solutions.