The space economy is no longer a government-only domain. It’s a rapidly expanding frontier and private enterprise is rewriting the rules. With innovation cycles accelerating and launch costs down nearly 90% thanks to NASA’s flexible contracting models and breakthroughs in reusable rockets, opportunities once reserved for billion-dollar budgets are now within reach for forward-thinking businesses.
Blue Origin strategist and Harvard Business School fellow Brendan Rosseau explains, “It’s created space for not only very rich countries, militaries and space agencies to do interesting and valuable things in space, but now companies, entrepreneurs and people of all stripes are figuring out what they can use space to do.”
This shift toward a dynamic public-private partnership model has sparked a commercial revolution. “New space is an exciting push into a new set of companies, a new economy around privatized space for business, exploration, government services and planet surveillance,” says YPO member Karl Hutter, CEO of Click Bond, Inc., a second-generation family enterprise and leading supplier of engineered assembly technology, mechanical hardware and engineered products to the global aerospace and defense industry.
The new space economy
Growing up in a family that worked in the industry during the space shuttle era – the period between the maiden voyage of Columbia in 1981 and the final flight of Atlantis in 2011 – Hutter was aware, “there was a lot of energy around space and imagining what was possible at that time.” It was inevitable that he would immerse himself in the business and possibilities of space.
YPO member Heather Bulk entered the industry at the dawn of the new space economy when opportunities for commercial innovation were opening up. The former Chief Executive Officer and Co-Founder at Aurex, which provides competitive and unique engineering solutions and hardware to clients in private and government sectors within space and defense industries, Bulk was looking “to bridge the gap between NASA and commercial space providers.”
The move was made possible in 2007 by NASA’s newly released contracts for the Commercial Orbital Transportation System. “It was move fast or you’re going to miss this window of opportunity to be a commercial space leader,” Bulk says.
The influx of private companies has pushed the industry to operate as a more agile, rapid model. “The criticality to move rapidly in this industry has never been more important. This pace is driven by national security as well as the commercial space evolution and innovation,” Bulk says. “Jeff Bezos, Richard Branson and Elon Musk are some of the many examples of industry coming in and thinking differently about these tough problems, and quite frankly, their companies have shaken things up and broken loose the old guard way of doing business.”
Opportunities in space
Satellite constellations like Starlink and Kuiper are game changers, providing millions with telecommunication services and paving the way for the mainstream adoption of the products and services that are being created in space.
“It allows for a much more connected world where not only the devices that we’re familiar with are always online, but we can have new devices, new forms of transportation, new forms of all the things we’re used to in real life that are created specifically for a world in which they’re always online,” Rosseau says
Much like the internet, connectivity at scale will become a critical infrastructure layer impacting consumers and businesses alike. Not only will internet access be accessible anywhere at any time but satellites will create critical data – not only through space but also from space about what is happening on Earth – that will change the way we interact. A global multinational enterprise, for example, can access real-time insights into logistics and environmental factors affecting supply chains and inventory thereby cutting costs and increasing efficiency, Rosseau explains.
The space industry is no longer simply about deep space exploration. “What is so exciting at the present moment is the ability to do really inspiring things to use space flight and space technologies to truly benefit normal, everyday people and businesses in a remarkable way,” Rosseau says. Companies like Planet Labs, for example, are beginning to use data through space from remote-sensing capabilities to unlock a real-time accounting system for the planet.
— Karl Hutter, CEO of Click Bond, Inc. share
While commercial satellite applications and Earth observation capabilities are already transforming daily life today, more applications impacting space maneuverability, protection, safety, exploration and logistics are on the horizon. “They are going to be seeking to bring on real commercial users, real commercial participants, anyone from pharmaceutical companies to manufacturing companies, folks who might be able to benefit from the unique capabilities of microgravity when it comes to forging materials and making products,” Rosseau says.
Understanding how the industry works can help businesses create more value from activities in space across sectors. In parallel to the new space economy, the new aviation economy featuring Advanced Air Mobility (AAM) concepts like air taxis and electric vertical takeoff and landing vehicles (eVTOLs) are exploding. Aviation is benefiting not only from technological advancements in space but also the example of how to embrace the Silicon Valley ethos of innovation, disruption, rapid growth and risk-taking while adhering to safety regulations that can slow progress.
“The best companies, whether it’s in new space or it’s in this advanced aerial mobility space, are finding the right balance of what has been tried and shown to be effective to avoid the pitfalls that will derail your plan and fresh ideas enabling speed and doing things in a new and different way,” Hutter says.
Leveraging advancements in space
The industry is undoubtedly challenging, physically and financially. “They call it rocket science for a reason; it’s hard,” Bulk says.
Success requires an understanding of the opportunities and risks presented by rapid advancements in the industry. “Take your time, make sure that the ideas work, that there is an appetite at the other end for what you’re building or if you’re a customer of a space-based product or service that it’s really scratching the itch, and then take it to the next level,” Rosseau says. “That appetite for risk but also mitigating potential risk by taking an informed step-by-step approach is a winning recipe.”
Patience is essential. “There are not going to be any quick wins for you here, and that’s around your time, around your money, and around earning credibility in the industry,” Hutter says.
In this rapidly changing field, “the agility and the ability to see where trends and needs are going and the flexibility to get your company there is essential,” Bulk says.
Entrepreneurs who take the leap will find the risk is worth the reward. “If you’re bringing great solutions, you’ll meet some of the world’s greatest people in this industry – people who are genuinely committed not to making a quick buck but to changing the world and doing it in a way that expands the possible for all of humanity, getting us moving in ways and going to places as never before,” Hutter explains.
The YPO Learning Advisory Partners (L.A.P.) program connects YPO members with global thought leaders to explore emerging trends. Curated by the Learning Committee, L.A.P delivers forward-looking insights and tools to lead through change, fueling peer-driven learning. YPO members can learn more and tap into other sessions here.
