A new report from space consulting firm Novaspace projects that the global space economy will grow from $596 billion (£484bn) in 2024 to $944 billion (£767bn) by 2033.

The forecasting, released as part of the firm’s latest Space Economy Report, predicts that this steady growth will be driven primarily by advancements in downstream solutions, with emerging technologies such as AI and cloud computing playing essential roles.

As the space economy approaches the trillion-dollar valuation mark, Novaspace said that new business models, such as Direct-to-Device services and in-orbit economies might be key to the industry’s future, although their success will depend on early mission performance and commercial viability. 

According to the report, Positioning, Navigation and Timing (PNT) services now account for $219 billion (£178.1bn) within the space industry, followed by satellite services with $137 billion (£111.4bn), manufacturing at $41 billion (£33.3bn), launch services with $22 billion (£17.8 bn), and satellite operations worth $20 billion (£16.2bn). 

Meanwhile the North American space market continues to hold the most value, at around $86 billion (£69.8bn), almost double that of the Asian market, at $45 billion (£36.5bn), and significantly ahead of Europe, with $38 billion (£30.8 bn).

Novaspace stressed that government investment remains a key factor in driving this growth, with global military space budgets now exceeding $64 billion (£51.9bn), and defence spending continuing to outpace civilian expenditures, which the report claims underscores the strategic importance of the space industry to international security and competitiveness. 

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“Downstream applications are the main driver behind the projected $348 billion growth over the next decade,” said Lucas Pleney, a senior consultant with Novaspace.

“Satellite-enabled services, such as navigation, Earth observation, and communications, are becoming increasingly integral across diverse industries, including agriculture, logistics, and urban planning.”   

Last year saw the UK Space Agency award funding worth nearly £11 million to five Scottish projects designed to invest in high-potential technologies to help drive innovation in the space sector, including funding for suborbital rocket testing at SaxaVord in Shetland.