Article
Global Macro ResearchFive ways space is reshaping the global economy
From falling launch costs to new satellite technology and increased competition, what’s driving the space economy’s evolution from ‘moonshot’ to critical growth driver?
Duration: 2 Mins
Date: 29 Jun 2026
Building on five key takeaways from Aberdeen Investments’ recent Macro Bytes podcast on the subject, we examine the space economy and its impact on business, policymakers, and the global economy. J.P. Morgan Thematic Researcher Hannah Lee joined Aberdeen’s Chief Economist, Paul Diggle, and Deputy Chief Economist, Luke Bartholomew for this episode.
Five ways space is reshaping the global economy
1) The cost of space travel is falling
For so long, the cost of space travel has constrained its economic viability.According to Hannah, launch costs have fallen by more than 90% over the last decade. This is largely because launches are now much more frequent, allowing high fixed costs - such as manufacturing infrastructure and launch pads - to be spread across many more missions, significantly reducing the cost per launch.
Secondly, increased private sector competition has driven innovation and attracted significant private capital into the industry.
What was once an area dominated by governments is now a competitive landscape, with private companies vying for dominance and pushing the sector forward.
2) Satellite deployment increasing
In 2025, 4,500 satellites were deployed in space - setting a record. These satellites now make up just under a third of all satellites currently orbiting earth.Hannah goes on to say that the European Space Agency expects around 100,000 satellites to be in orbit by 2030.
This has been made possible by a combination of satellite miniaturisation, falling costs, and the rise of operators deploying groups of satellites to provide continuous monitoring or communications coverage.
3) Commercial use cases
Communications is currently the most common use of space from a commercial perspective, according to Hannah.Everything from broadcasting, internet connectivity, data relay, maritime, and aviation communications are already well-established uses for how space fits into the modern, global economy.
Hannah also notes that spending by governments on Earth observation already accounts for four times the spend of the commercial sector. She points to AI presenting a growth opportunity in this area, with the potential to manage large volumes of data more effectively.
4) Markets in the future
The recent SpaceX IPO highlights investor willingness to back companies with ambitious plans to develop next generation space and related technologies, reinforcing the sector’s longer term growth potential.One of the new ‘frontier’ markets that could open is space mining, targeting near‑Earth asteroids or other bodies such as the Moon or Mars. This could involve extracting metals including nickel, cobalt, platinum and gold.
Another opportunity Hannah highlights is space‑based solar power, which could either transmit energy back to Earth or support in‑orbit infrastructure. Although many remain sceptical of the scientific and financial feasibility of such projects in the near-to-medium term.
5) Risk and geopolitics
With increasing competition comes increasing pressure on space itself. While space is vast, satellite activity has become heavily concentrated in low Earth orbit, which offers better coverage due to faster orbital movement. As a result, orbital “real estate” is becoming scarcer, more valuable, and increasingly congested.There are governance challenges too around the use of weapons in space, particularly by the military, which will need to evolve as technology advances and new use cases emerge.
