A new report from space consulting firm Novaspace forecasts that the global space economy will experience significant growth over the next decade, expanding from $596 billion in 2024 to a staggering $944 billion by 2033.
This projection underscores the increasing importance of space-related industries and technologies in the global economy. The report, titled “Space Economy Report – 11th Edition,” highlights that downstream applications will be the primary driver of this substantial growth.
Lucas Pleney, a senior consultant at Novaspace, explained: “Downstream applications are the main driver behind the projected $348 billion growth over the next decade. Satellite-enabled services, such as navigation, Earth observation, and communications, are becoming increasingly integral across diverse industries, including agriculture, logistics, and urban planning.”
The report emphasises the crucial role of emerging technologies in fuelling this expansion. Artificial intelligence and cloud computing are expected to enhance data collection and processing capabilities, fostering convergence with the digital economy and creating new opportunities for commercial adoption.
Government investment remains a significant factor, with global military space budgets now exceeding $64 billion. Defence spending continues to outpace civilian expenditures, highlighting the strategic importance of the space industry to international security and competitiveness.
While the overall outlook is positive, the report notes that upstream sectors face persistent challenges. Inflation, supply chain disruptions, and material shortages are reshaping traditional ecosystems, prompting industry consolidation and increased competition from vertically integrated players2.
Scottish space industry: a rising star?
Scotland’s space sector is playing an increasingly important role in the global space economy. The country has established itself as a European leader in space technology, particularly in satellite manufacturing.
Space Scotland, the country’s space agency, reports that the space industry in Scotland contributes over £4 billion to the Scottish economy.
The sector employs approximately 7,500 people, representing about 18% of all UK space roles.
Glasgow, in particular, has emerged as a key hub in the Scottish space industry. The city is at the forefront of a European revolution in space systems, payload manufacture, launch, and data analysis activities.
As the global space economy continues to expand, Scotland’s space industry is well-positioned to capitalise on new opportunities and contribute to the sector’s growth.
