The Race Is On to Corner the Satellite Launch Market

(Bloomberg) -- The original space race was between superpowers vying for supremacy in the sky above, and in the propaganda war below. Now, thanks to commercialization of what was once the exclusive realm of nations, there’s a new space race—and it’s all about business.

Instead of the U.S. and the U.S.S.R., the rivals these days are startups and entrepreneurs. They’re fighting for a slice of a $360 billion industry. In Giant Leap, a Bloomberg Originals series, we explore the risk and reward awaiting companies at the dawn of the next industrial revolution—one that starts in orbit.

Many of these businesses are perfecting the art of launching satellites, which constitutes the bulk of the space industry’s total revenue. Global launches last year increased by 46% compared with a decade ago. A new era of smaller, cheaper satellite technology has made it easier than ever to put one into orbit, both in terms of cost and rocket availability. 

Notably, there are two types of going concerns trying to take control of the burgeoning launch industry. First, there are massive companies run by big name billionaires such as Elon Musk, Jeff Bezos and Richard Branson. Then, there are dozens of small and medium-sized businesses, with names like Rocket Lab and Firefly.

With so many aiming to solve a similar problem, many will fail.

“This is like March Madness to me,” said Rafael Spears, a director at Commercial Systems Aerospace Corp. “I got one shot to get to the end or else, I mean, they’re gonna fail. Run out of money or be gobbled up by someone else.”

To contact the editor responsible for this story: David Rovella at drovella@bloomberg.net

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