Space sector offers ‘powerful synergies’, new opportunities to governments
Market in Asia and Oceania the second biggest region after North America.
Amidst “unprecedented momentum” in the space sector, governments are being urged to act swiftly and invest in the multibillion-dollar industry. Published by Boston Consulting Group (BCG) and Novaspace, the June 2025 “Governments in space: A universe of opportunities” report points to the combination of benefits that governments stand to reap by investing in space now.
According to Novaspace, the global space market in 2024 was valued at $224b. Of this sum, $159b relates to satellite communication; $21b, Earth observation; $16b, security; $14b satellite navigation; and another $14b in other applications.
Geographically, North America is the largest space market at $88b, followed by Asia and Oceania at $46b and Europe at $39b. The other regions are Latin America and Caribbean ($19b), Middle East and Africa ($18b), Russia and Commonwealth of Independent States ($10b), and Oceans ($4b).
Making a case for government investment in space, BCG and Novaspace cited “the next frontier” and the industry’s “new era of innovation and growth” in their joint report.
Significant gains that were highlighted include economic stimulation and diversification, job creation, technological progress, real-time social solutions, supporting sustainability efforts, international collaborations, boosting space-related services, as well as prestige and domestic capabilities.
“Despite its rapid evolution and inherent uncertainty, the space sector’s compelling socioeconomic, environmental, technological, and political benefits make it a critical area of action for national governments,” said BCG and Novaspace. “As space becomes more crowded, the urgency for such action intensifies. Space is quickly unlocking new possibilities across multiple industries.”
They went on to state: “Integrating space technologies with digital policies offers governments powerful synergies for economic growth. The US has used Starlink satellites to extend broadband to remote areas, while LEO constellations are being developed to support 5G backhaul, improving connectivity where terrestrial infrastructure is lacking…
“Earth observation data informs policymaking by providing critical insights into climate change, agriculture, and resource management. Additionally, satellite communications strengthen international relations, offering secure channels for diplomacy and monitoring compliance with global agreements.”
It was noted that over 90 nations are presently operating in space and that their participation helps countries secure a foothold in future-oriented industries while paving the way for innovative advancements.
For BCG and Novaspace, the current trends in the space market “signal a new order” that will see industry leaders being defined in the next decade.
“The space sector has evolved through several distinct stages over the past 70-plus years,” they reported. “The transition from Space 3.0 to 4.0 broadens the playing field from governments of a few spacefaring nations to include diverse global space actors led by VCs (venture capitalists), angel investors, and governments of less traditionally spacefaring countries.
“Additionally, we see a shift in focus, from creating value for terrestrial-based sectors to downstream services and emerging applications like in-space services and space resources.”
The wider space economy, which spans all economic activities and value creation brought about by space-related systems and technologies, is forecast to grow from $596b to $944b by 2033.
