AI-generated summary
The commercialization of space, propelled by initiatives like NASA’s Commercial Orbital Transport Services (COTS), marks a significant leap in space exploration and access. Traditionally dominated by major players such as Virgin, Blue Origin, and SpaceX, the sector is increasingly welcoming small and medium-sized enterprises (SMEs). A notable example is the Spanish company PLD Space, which in October 2023 successfully launched Miura 1, a suborbital rocket capable of carrying 100 kg payloads. This achievement, unimaginable a decade ago, paves the way for their upcoming Miura 5 rocket, designed to deliver up to 540 kg into orbit with a reusable module, highlighting how private ventures are contributing to cost-effective space access.
Liberalization and privatization have been key drivers of this transformation. After the costly and bureaucratic era dominated by government agencies like NASA and the Russian Space Agency, the rise of private companies has introduced competition and innovation, lowering launch costs and enabling broader participation. Reusability of rocket stages, exemplified by PLD Space’s design allowing up to 15 reuses of the first stage, plays a critical role in cost reduction. However, this growth also raises concerns about space debris accumulation and the risk of Kessler syndrome, which could render space inaccessible due to cascading collisions. Beyond economics and technology, the expansion of satellite networks also touches on profound questions about humanity’s place in the universe, as an abundance of satellites could serve as a signal to potential extraterrestrial observers.
Developing an off-Earth logistics market is one of humanity's most relevant commercial exploitation opportunities, as logistics by land, sea and air was at the time. And like these, space logistics is not without risks.
The commercialization of the space – currently led by the contract NASA’s Commercial Orbital Transport Services , or COTS—will undoubtedly be a huge leap forward. One that until now was led by giants such as Virgin, Blue Origin, SpaceX, but in which small companies are increasingly involved.
Is there room for SMEs in the space?
On October 7, 2023, the Spanish SME PLD Space (150 workers) successfully launched Miura 1, a suborbital launch vehicle with a payload of 100 kg, from Huelva. Just a decade ago, this milestone would have been seen as unachievable. Today, the Miura 5 is being dreamed of, which will be able to lift devices weighing up to 540 kg into orbit, and through a recoverable module. How did we get here?
This makes space and suborbital flight cheaper
During and after the Cold War, space agencies led by RSA and NASA have made possible the space exploration that took us to the Moon. However, the operating prices of both administrations, mainly for reasons of security, bureaucracy and quality, increased until they drowned out the launch programs. In 2011, for example, the United States canceled the Space Shuttle program.
It has not been until the liberalization of space and the outsourcing of private companies that we have seen ‘many’ people in orbit again. In May 2023, the world record of 20 people at a time in space was achieved thanks to the addition of the ISS, Tiangong and Unity 25 (suborbital flight). Obviously, and as the Spanish PLD Space demonstrates, liberalisation is continuously preceded and accompanied by public funds, as is the case of the NextGenerationEU in Spain; or state plans such as the Recovery, Transformation and Resilience Plan
This liberalisation transfers the risk of failure to private companies (many go under after repeated failures and others have to be rescued by investors), creating an ecosystem of competitiveness in which a few achieved viable launches at a lower cost. Once the cost of technology was reduced across the industry, they opened the door to small businesses.
According to the experience curve, the higher the cumulative volume of production, the lower the direct cost for each new unit produced, and the same is happening with launches. Each one is slightly cheaper than the last. And, because it’s cheaper, it makes it more accessible to younger, smaller businesses, accelerating the cost-cutting cycle.
Reusing rockets, a key technical milestone
Using a reusable orbital launcher like the one PLD Space designs with Miura 5 is an imperative step in reducing the costs of each launch.
Although ‘only’ the first stage, the one that propels the cargo into space, is reused, this is already a point of support to be able to sell cargo transport at a low cost. According to PLD Space sources, it is possible to reuse this stage up to 15 times .
The risks of seeding space with objects
Already in 2018, it was estimated that there had been about 2600 satellites in orbit that were not working, about 17,000 objects and up to half a million fragments. That they continue to accumulate is a risk due to Kessler’s syndrome, an increasingly likely A chain reaction of satellite explosions because the shrapnel of some would be like the beginning of the explosion of others that, if very virulent (it has already happened on a ‘small’ scale) could leave us trapped on the planet for centuries as we are unable to enter orbit safely.
And in this cost-benefit analysis about putting objects into orbit, and how many objects, there is also room for humanity’s big questions like “Are we alone in the universe?” Because if we’re not, placing a Clarke Belt (a cloud of satellites around the planet) is a perfect marker for anyone watching, little less than an invitation to the planet, as physicist Héctor Socas-Navarro discusses in this scientific article.
