???? ?? Key Takeaways from the Bureau of Economic Analysis' Latest U.S. Space Economy Statistics Report
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Happy Friday, Space Enthusiasts! ??
This week, NASA - National Aeronautics and Space Administration awarded Intuitive Machines a contract worth up to $4.82 billion to provide critical communication and navigation services for missions in the near-space region. Under this agreement, Intuitive Machines will deploy a constellation of lunar relay satellites designed to enhance communication and navigation capabilities for missions to the Moon.
The U.S. Bureau of Economic Analysis (BEA) recently released its updated statistics on the U.S. space economy. The report highlights the space economy's contribution to the U.S. gross domestic product, private-sector employment, and compensation over the five-year period from 2017 to 2022.?
Read on to learn about NASA's contract with Intuitive Machines, key insights from the BEA's report, and your weekly news round-up.
In this edition of the Space Impulse Newsletter, you'll find:
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Event Highlights
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The “To Infinity and Beyond – Advances in Space" panel will be Chaired by?Lord Willets, Chair of the UK Space Agency and will explore cutting-edge advancements in space technology.
Joining the conversation are:
?? Enrique Lizaso Olmos , CEO of Multiverse Computing
?? Julie Holt-Jones FRAeS , Co-Founder of Space4Sight
?? Jay Lowell , Principal Senior Technical Fellow at Boeing
?? Kata Escott CB , UK Managing Director at Airbus Defence and Space
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Space News Highlight ?
NASA Awards Intuitive Machines $4.82B Contract For Lunar Communication And Navigation Services
NASA has awarded Intuitive Machines a contract worth up to $4.82 billion to provide critical communication and navigation services for missions in the near-space region. The contract, issued under NASA’s Near Space Network (NSN), is a Firm-Fixed-Price, Multiple Award, Indefinite-Delivery/Indefinite-Quantity (IDIQ) Task Order Contract. It?includes a five-year base period starting on October 1, 2024, with an option to extend for another five years through September 2034.
Under this agreement, Intuitive Machines will deploy a constellation of lunar relay satellites that will provide services from geostationary orbit to the cislunar region, enabling higher-quality data transmission, including 4K video, and improving navigation precision for lunar landing site selection and resource prospecting.
???? ?? Key Takeaways from the Bureau of Economic Analysis' Latest U.S. Space Economy Statistics Report
The U.S. Bureau of Economic Analysis (BEA) recently published its updated statistics on the U.S. space economy, offering fresh insights into the sector. The report, released in June 2024, highlights the space economy’s contribution to the U.S. gross domestic product (GDP), private-sector employment, and compensation over the five-year period from 2017 to 2022.
In 2022, the space economy accounted for $131.8 billion, or 0.5% of the total U.S. GDP. This represents a 2.3% increase in real GDP growth, outpacing the broader U.S. economy, which grew by 1.9%. Gross output in the space economy rose to $232.1 billion in 2022, with private-sector compensation reaching $54.5 billion, supporting 347,000 jobs.
Expanded Industry Breakdown
The BEA has expanded its industry breakdown with detailed space economy contributions across 75 industries, a significant increase from the previous 30. This change allows a more nuanced understanding of how the space economy interacts with various sectors.
For example, while real GDP for the space economy grew by 2.3%, current-dollar GDP showed a 6.0% rise. The difference between these figures highlights the impact of inflation, particularly in sectors like wholesale trade, which saw a 7.9% price increase in 2022.
Industry Growth Drivers
The report identifies several key drivers of growth in the space economy. Federal defense spending grew by 16.2% in 2022, primarily driven by R&D activities. Professional, scientific, and technical services also saw a notable rise of 11.7%, further fueled by R&D investments. Government space programs, especially NASA and the U.S. Space Force, supported these gains.
However, not all sectors performed equally. Industries like broadcasting and telecommunications saw a contraction, with the latter shrinking by 3.0%, likely due to the decline in direct-to-home satellite television subscribers Similarly, the “other transportation equipment” industry, which includes space vehicle manufacturing, experienced volatility with a 7.3% contraction in 2022 after a robust 23.0% growth in 2019.
Price Trends
Inflation impacted most space-related industries in 2022, particularly wholesale trade. On the other hand, manufacturing saw price declines between 2017 and 2022, mainly due to falling prices and improved quality in the computer and electronic products industry, which includes essential space-related equipment like satellites and GPS systems.
Employment
Regarding employment, the space economy supported 347,000 private-sector jobs in 2022, with manufacturing accounting for the largest share (31.1%). Despite having fewer jobs, the manufacturing sector offered higher compensation, with an average annual salary of $217,296, well above the overall space economy’s average.
Looking Ahead
The BEA’s latest report offers a comprehensive view of the U.S. space economy from 2017 to 2022, but it also points to significant future growth opportunities and potential challenges.
Growth Opportunities
Growth opportunities are abundant in areas like satellite technology, space exploration, and commercial space services. R&D investment in these areas is expected to grow as the demand for more advanced satellite communications, GPS systems, and space-based research intensifies.
Private sector involvement, especially in the manufacturing of satellites and space vehicles, will likely increase as companies like SpaceX, Blue Origin, and others continue to push the boundaries of commercial space operations.
Challenges
Price fluctuations, particularly in the wholesale trade and manufacturing sectors, present risks to sustained growth. The space economy is highly sensitive to inflationary pressures, as shown by the price increases for wholesale trade in 2022. Any further price increase could slow growth by making space-related goods and services more expensive, affecting profit margins and investment.
Another challenge lies in navigating the volatility of certain industries, such as space vehicle manufacturing, which saw dramatic swings in growth throughout the 2017–2022 period.
The broader economy and its performance will continue to impact the space sector. As inflation and economic shifts influence government budgets and private investment, space-related activities might face budgetary pressures, particularly in periods of economic downturn.
The report’s findings paint a promising picture of the space economy’s future, highlighting both the opportunities for innovation and expansion, as well as the challenges that must be managed for sustained success.
Looking for more insights and resources to learn about commercial, government, and academic space entities? The Space Impulse Market Intelligence Platform has captured data on the space tech industry's key companies, investors, universities and government organizations.
Space Industry Quote of the Week ??
"Modern theories of secular stagnation emphasize the need to sharply increase both aggregate demand and aggregate supply, [...] Achieving these goals in the modern era, characterized by near-zero real interest rates, declining productivity and innovation, and declining fertility in high-income economies, is challenging. On the demand side, if the United States returns to its historical peak levels of public-sector investment in space—as a share of federal government outlays or GDP—it would directly add around 1.5 to 3.0 trillion to demand over the next two decades. On the supply side, long-established theories of innovation have emphasized the role of “frontiers” as generators of dynamism and productivity growth. Harnessing the positive growth effects of the new space environment, embarking on risky and productive ventures, and establishing new habitats sustainably are critical. The potential of space as a large-scale project to reinvigorate economic growth and improve human well-being is unmatched and merits further study."
- Luisa Corrado, Maureen Cropper , and Akhil Rao, examining Space exploration and economic growth: New issues and horizons.
Weekly Space News Roundup ??
Leanspace , in partnership with CYSEC and Constellation Technologies & Operations , has been awarded the €10.5 million “Umbrella” project under the France 2030 initiative. The project, backed by the French government, aims to address the increasing complexity of managing large satellite constellations, positioning Leanspace as a critical player in the satellite operations sector. Leanspace also announced plans to open a US office later this year.
Sceye announced the successful completion of its Series C funding round, led by Saudi Arabia’s Mawarid Holding Company. The round valued Sceye at $525 million pre-money, providing the capital needed to drive research and development, support test flights, and prepare for commercial operations by 2025. In 2024, Sceye showcased its technology’s ability to stay aloft for extended periods by leveraging solar energy during the day and batteries at night.
MDA Space has contracted Airbus to supply over 200 solar arrays for MDA’s AURORA satellite product line, which supports?Telesat’s Lightspeed constellation. Airbus will manufacture the solar arrays, called Sparkwing, at its high-capacity facility in Leiden, Netherlands. These will be the largest Sparkwing arrays built so far, spanning over 30 square meters of photovoltaic area.
Ursa Major announced it will match the Pentagon’s $12.5 million investment to advance its solid rocket motor manufacturing process. The Pentagon’s Office of Strategic Capital initiated the investment to strengthen key supply chain technologies, in collaboration with the US Navy ’s Program Executive Office for Integrated Warfare Systems.
The project, awarded in July, focuses on enhancing key manufacturing capabilities with the aim of supporting the manufacturing of components for the Navy’s Mk104 Dual Thrust Rocket Motor, which powers the SM-2, SM-3, and SM-6 missile systems.
The United States Space Force and the Air Force Research Laboratory have selected the Rochester Institute of Technology and the 密西根大学 to lead the latest round of research on Advanced Space Power and Propulsion technologies. RIT received $9.9 million, while the University of Michigan was awarded $34.9 million. Both institutions will lead collaborative teams of academic and industry partners to explore advanced solar cell technology, thruster technology, and new approaches to space power.
In FY24, the USSF provided $49.1 million under Institute 2 of the University Consortium/Space Strategic Technology Institute 3 program, focusing on space access, mobility, and logistics.
BlackSky has partnered with HEO to enhance automation in non-Earth imaging (NEI) services. This deal, valued in the seven-figure range, aims to deliver rapid, low-latency imagery for defense, intelligence, and commercial applications. As part of this contract, BlackSky’s satellite constellation will integrate into HEO’s NEI sensor network, expanding its capacity to track objects in orbit and on Earth.
Customers will benefit from faster tasking and delivery of NEI products, as HEO’s automated platform, HEO Inspect, will manage the scheduling and imaging tasks. Once captured, NEI data will be processed with object detection and pattern-of-life analytics, delivering actionable intelligence to clients.
DataPath, a U.S.-based subsidiary of Gilat Satellite Networks , has secured more than $5 million in contracts from the United States Department of Defense . The contracts cover a range of services related to satellite communications, including system upgrades and technology enhancements to the Department's Satellite Transportable Terminal units. DataPath will focus on enhancing the efficiency and capabilities of existing satellite systems, ensuring that they remain both effective and user-friendly.
NASA has selected Lockheed Martin to build a lightning mapping instrument for the NOAA: National Oceanic & Atmospheric Administration ’s Geostationary Extended Observations satellite program.?This $297.1 million contract covers the development of two flight instruments, with options for two additional units. Lockheed Martin’s work will include 10 years of on-orbit operations and 5 years of on-orbit storage for each flight model, making this a 15-year effort for each satellite.
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Middle East Governments Research Lead @ BCG
1 个月Sami Khattar
Well done on this!
Senior Engineering Executive | Six Sigma Black Belt | Metal Additive Manufacturing & Operational Strategy | Visionary Leader Driving Innovation in Space & Marine Engineering | Member of Swiss Engineering
1 个月Fantastic update! ?? The recent BEA report underscores the growing significance of the space economy, not just in terms of GDP contribution but also in driving innovation, private sector growth, and high-value employment. The $4.82B contract awarded to Intuitive Machines highlights NASA's strategic vision to enhance lunar communications, a critical step for the sustained presence on the Moon and future deep space exploration. As we continue to push the boundaries of space technology, collaborations like these will play a pivotal role in ensuring reliable, secure, and advanced systems to support both governmental and commercial missions. Exciting times ahead for the space industry!