Space: The Bold New Frontier for Business

Space has always been the dark, mystifying void, familiar to the common man only through text books and documentaries. Practically, yet, ironically, space or the universe as a whole does not seem to affect the humble humans living on Earth. Its traverses are limited only to tabloids, scientists or the weekly documentary on the discovery channel. Until now, the space industry was mainly driven by the state funding to their respective national space agencies.

However, this arrangement is rapidly changing with the private sector taking a keen interest in space innovation (A déjà-vu moment for Sci-Fi buffs). But space is not your ordinary run-of-the-mill industry with initial investment and long term profits. Investment in space is a continual and painstakingly grueling process, with the silver lining of profits far away into the distant future.

The space shuttle program of the United States officially came to an end in 2011. This led to the United States having to rely on other space agencies and mediums to launch supplies in order to keep the International Space Station operational. However, this was still not feasible as the only other reliable country with an autonomous launch vehicle was Russia.

The gradual development of these events breathed fresh life into the Elon Musk founded company SpaceX. The company successfully test fired their rocket and launch vehicle systems in the presence of NASA scientists; thus, bagging a $1.5 billion contract for providing essential supplies to the space station for the next couple of years.  This was a huge achievement for the virtually unexplored industry and led to the opening of a new frontier for business.

According to 2013 estimates, the space innovation industry is currently valued at 315 billion dollars, consistently growing at around 4 percent per annum. The tremendous growth tasted by SpaceX has prompted entrepreneurs to latch on the early opportunity as the industry is expected to double in the next ten years; an opportunity that is too tempting to resist.

This newfound faith in exploring space has prompted entrepreneurs to engage in bold and what some may term as foolhardy measures to develop space technologies ranging from rockets and spaceships to asteroid miners, Moon Landers, interplanetary transport vehicles and zero gravity 3-D printers. This is not some stuff out of a science fiction novel; these are actual technologies being developed by the so-called next-gen start-ups.

This industry has another dimension; a more fun and luxurious dimension. Richard Branson founded Virgin Galactic and other small companies in the fray are offering trips to space to patrons. However, the ticket to space goes at $200,000 a pop. But, the company hopes to provide the ‘joy of space travel’ accessible to the common man in subsequent years.

The commercially successful industries here on Earth, are fueling the progress for space innovation. The glowing examples of this growth are companies like Boeing and SpaceX; whose successful business models are enabling the reallocation of resources. The common man may think that space exploration and travel is only a rich guy’s whim, but the same thing happened with the aviation industry, which was inappropriately disregarded as an extravagant dream of playboys.

India’s recent space missions to the Moon and Mars were not mainly in the spirit of science, but had an ulterior motive of emblazoning its low cost, yet, effective technology to the world. The growth of this industry will suffer form shortfalls unless newer and more efficient technologies can be developed. India’s move to showcase their low cost rocket technology will go further to bolster investment in India’s space program initiatives.

For now, the real business of space is just about promoting science and providing much needed ground support to keep the International Space Station operational. However, this is because the control of the industry is in a phase of transition from government hands to those of corporate. Once the base is ready, the private sector will look to fully exploit the opportunities that lay in space, encompassing the tertiary services right at home.

But, there have been recent setbacks to the industry, which have opened it up for debate, whether space companies will ever be able to bring home the bacon. Orbital Sciences’ Antares rocket, carrying cargo supplies for the space station exploded shortly after take-off. In another incident, Virgin Galactic’s SpaceShip Two crashed, killing its test pilot. Such setbacks are foreseeable, given the nature of danger that follows with the line of work. The advancements that will be made after such setbacks are much more important as they will be reminiscent of the growth and maturation which will take space innovation to its heights.

Private investment will keep on growing as the achievements and success of companies will invite more and more to join in on the space boom. The first space race ended with the end of the Cold War, but a whole new space age is taking shape right before our eyes. The coming years will be a testament to how well the industry is able to mature and grow from its infancy in achieving the visions of its pioneers. You may very well be enjoying a burger from McDonalds while sipping a hot latte at a vacation in space.