AI-generated summary
The focus on space has shifted from mere exploration to a dynamic source of innovation and business on Earth, particularly within the Low Earth Orbit (LEO) economy. Defined as economic activity occurring between 300 and 1,000 kilometers above Earth, the LEO economy encompasses over 5,000 satellites that support daily services such as communications, navigation, agriculture, and logistics. This sector is evolving from just hardware sales to a service-oriented model offering connectivity, data analytics, and software applications, driven by public-private collaborations and advancements in space infrastructure. The LEO satellite market is expected to nearly double from $12.6 billion in 2023 to $23.2 billion by 2029, highlighting its rapid growth potential.
Key trends fueling the LEO economy include the shift toward end-to-end service solutions, cost reductions enabled by reusable rockets and lighter satellites, and the need for international regulatory frameworks to manage space debris and orbital congestion. The cumulative space economy revenues could exceed $1 trillion by 2029, with connectivity as a principal growth driver. Looking ahead to 2035, Deloitte predicts the development of orbital commercial platforms and in-orbit manufacturing, potentially expanding the market to $312 billion annually. A critical challenge remains the management of space debris, with companies like OHB SE, ClearSpace, and GMV pioneering cleanup technologies, transforming satellite maintenance and end-of-life services into emerging commercial opportunities. This integration of technology and commerce positions space as a vital arena for future economic and social advancement.
Satellite Trade, Space Infrastructure Development and Other Innovations Open New Business Opportunities in Space
The gaze towards space is no longer focused only on the exploration of new worlds, but has become a source of innovations and business opportunities on Earth. The so-called Low Orbit Economy (LEO economy) paints a context in which initiatives to “clean up” space in the face of the growing problem of orbital debris are flourishing, but also a future of opportunities for which the economic activity in orbit will be as relevant as that of the Earth.
The LEO Economy is defined as the economic activity that takes place in low Earth orbit, usually between 300 and 1,000 kilometers altitude. Although space has traditionally been conceived as an environment reserved for scientific and defence missions, today it is seen as an extension of the Earth’s soil, in which more than 5,000 satellites operate, which, directly or indirectly, affect our daily lives. In fact, it’s estimated that we use satellite services around 40 times a day, covering applications ranging from communications and positioning to traffic monitoring, precision agriculture and logistics.
The report Megatrends 2024 of the Bankinter Innovation Foundation already pointed out that space debris represented a threat to future missions, which prompted various actors – both public and private – to devise solutions to recover and reuse obsolete technology. In the new Megatrends 2025 delves into this space market, highlighting the evolution of the Low Orbit Economy as an engine for the development of satellite trade, space infrastructure and a wide range of business opportunities.
In fact, in the LEO Economy, activity is no longer limited to the simple marketing of hardware, but has been oriented towards a Business Model “as-a-service”. Connectivity services, data analysis and software-based applications have become the driving force of this sector, in which public-private collaboration and innovation in space infrastructure open up a range of opportunities. The LEO satellite market is projected to grow from $12.6 billion in 2023 to $23.2 billion in 2029, with a compound annual growth rate (CAGR) of 13.0% during that period.
Opportunities and challenges of the LEO economy
However, the LEO economy is not just satellites and the dynamics of the space market are undergoing a radical transformation. Studies such as NSR’s “Global Space Economy” project cumulative revenues of more than $1 trillion between 2019 and 2029, where connectivity is the main driver of growth. This change involves three fundamental pillars:
- Services and Software: Companies are moving away from the traditional model of manufacturing and selling satellites to embrace end-to-end solutions that deliver data, high-resolution satellite imagery and navigation technologies, enabling applications in diverse sectors such as agriculture, logistics and national security.
- Innovation and cost reduction: Innovative solutions – such as reusable rockets, lighter satellites and group launches – have managed to significantly reduce the cost of sending cargo into space (from $15,000 to $4,000 per kilogram), facilitating access to the market for new players.
- International collaboration and regulation: With the growing participation of private entities (SpaceX but not only) and the entry of new investors, it is essential to develop international regulatory frameworks that ensure the sustainable use of space, especially in the clean-up of waste and the management of orbital congestion.
These trends, also supported by Morgan Stanley analysis and other industry reports, place the LEO Economy as a key player in the reconversion of the broader Space Economy, connecting terrestrial technological advances—such as 5G, Big Data, and Cloud Computing—with space applications.
New business models
In this sense, Deloitte It envisages, by 2035, the creation of multiple orbital commercial platforms, regular and safe access to living spaces, and the industrialization of in-orbit production. Such developments could translate into an annual market worth about $312 billion, an increase of nearly eight times from the current $40 billion.
Deloitte provides a detailed overview of the LEO Economy, dividing it into six market segments – including human transportation, in-orbit maintenance, support for observation operations and the provision of space infrastructure. This segmented approach makes it possible to identify not only areas of high potential, but also bottlenecks that limit development, such as excessive perception of costs and infrastructural constraints.
However, one of the most innovative and urgent aspects in this new frontier continues to be the strategy for cleaning up space debris. The problem has become more acute over time, and initiatives are being developed to remove unusable satellites and technological debris that, if not managed, could collide and generate more debris.
Companies such as OHB SE, ClearSpace and the Spanish GMV has begun to test capture systems using specialized logistics networks or brigades. The implementation of these services not only prevents collision risks and orbital congestion, but opens the door to an emerging market in which satellite inspection, refueling and end-of-life optimization will become high-demand commercial services.
The rise of the LEO Economy reconfigures the boundaries of commerce and innovation, integrating cutting-edge technologies and redefining the way we interact with space. The convergence of traditional services and emerging solutions – such as artificial intelligence applied to earth observation for climate change mitigation or the creation of hyper-connected communication networks – suggests a future in which the Space will not only be the laboratory of exploration, but a fertile ground for economic and social progress.
