Despite the global financial crisis, revenue-generating opportunities across the entire space value chain are expected to increase over the medium to long term, says research house Frost & Sullivan.
New analysis finds that the global space market earned revenues of $257 billion in 2008 and is estimated to reach $300 billion by 2017.
“Capacity constraints and alternative applications are dramatically transforming the overall space industry,” says Frost & Sullivan Research Analyst Aman Pannu. “Market participants who fail to grasp these changes will struggle to survive, unlike those who have understood them.”
While the global space market is currently quite open and accessible, the drive to increase capabilities within market offerings is pushing large industry participants to absorb different elements of the space value chain with strategic partnerships and mergers and acquisitions (M&As). These potential ‘hyper-players’ will eventually dominate increasingly large swathes of the market, leaving the others to compete for whatever low-value market scraps are left over.
“Major market participants are beginning to understand how they can command ever larger portions of the overall market,” explains Pannu. “Without a true understanding of the nature and dynamics of this market, they will not be able to manipulate the future market successfully.”
Understanding the potential benefits of strategic partnerships and alliances and knowing what the market demands in the future will improve the chances of success for potential market participants. A clear grasp of the regional and global market as well as the way business is undertaken will boost revenues in the long term.