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Space is getting crowded. Could better governance help curb conflict?

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A strategy for space

In the news

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Expanding into space. Companies are increasingly turning to space to create value, compete for business, and invest. In 2021, private investors funneled a record $14.5 billion into space infrastructure companies. While investment dipped in 2022, the value of the space economy continued to grow, hitting $424 billion last year, according to a global market research firm. But as it grows, some perceive the space sector to be vying with other industries such as manufacturing. [Axios]

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New ventures. The emerging space economy is creating plenty of opportunities for space-adjacent companies. These businesses offer goods and services that are useful not only for space but also for other industries such as artificial intelligence and high-precision manufacturing. But how do leaders venture into the global space economy? Finding new ways to use existing intellectual property could be one place to start. For instance, a textiles company might already produce a cutting-edge material that may prove useful in space travel. [Entrepreneur]

By building governance structures around five key aspects of space economy development, the space industry can enable even greater leaps in innovation.

On McKinsey.com

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Getting to good governance. With an increasing number of public and private organizations exploring outer space, it’s getting crowded out there. Good governance could limit conflict and help keep the space economy growing. While recent developments are helping to close the gaps, today’s space governance landscape remains fragmented. To identify challenges that could affect the space economy, McKinsey mapped space governance institutions across a range of space law and policy topics, explain McKinsey’s Giacomo Gatto and coauthor.

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Increased activity. As activity in space increases, unintentional interference with other missions or devices is likely to occur. Frequencies currently used for a variety of space-based applications could be affected by rising 5G and mobile use. Lunar exploration is another potential area for interference. Increasing lunar congestion could boost the possibility of signal interference, landing zone conflicts, and damage caused by landing debris and dust. See five issues that could significantly affect the development of the space economy.

Comprehend the challenges

— Edited by Belinda Yu, editor, Atlanta

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:50 - 7 Mar 2023

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Space is getting crowded. Could better governance help curb conflict?

A strategy for space

In the news

By building governance structures around five key aspects of space economy development, the space industry can enable even greater leaps in innovation.

On McKinsey.com