New York, US: Investment bank Morgan Stanley forecasts that the global space industry— which is currently worth around US$350 billion—will triple in size and be worth over US$1.1 trillion by 2040 due to increased investment in space and satellite technology.
The investment bank identified a diversified group of 20 stocks called the “Space 20”, which are set to benefit the most from the space industry’s expansion. The list includes aerospace manufacturers such as Boeing and technology companies such as Apple.
“The demand for data is growing at an exponential rate, while the cost of access to space is falling by orders of magnitude,” said Morgan Stanley in a statement. The prediction marks a significant departure from the current market, where space industry revenues come from the government, ground equipment and consumer television sectors.
The investment bank also predicted that akin to the space industry, the autonomous vehicle industry will also likely attract more investments as self-driving technology continues to gain recognition by investors.
American aerospace manufacturer SpaceX, founded by Elon Musk (who also founded Tesla), has driven down the cost of satellite launches. A couple of years ago, the average cost per launch for SpaceX was US$61 million, and this figure is expected to reduce to US$5 to US$7 million as the company uses reusable rocket technology.
The automaker Tesla and electronic commerce and cloud computing company Amazon are driving the bulk of the space industry’s recent innovation. The future value in the space industry is projected to come from companies providing and benefitting from internet bandwidth.