AI-generated summary
The space industry faces several significant business risks that could impact its growth and sustainability. A primary challenge is the shortage of human capital, both in engineering and management roles. Attracting and retaining skilled talent is difficult, especially when competing markets offer higher salaries and greater social recognition. Additionally, the industry must adapt its business models to gain the confidence of investors, regulators, and potential employees. While there have been substantial investments in satellite constellations, many have yet to successfully launch even a single satellite, raising questions about the viability of these models. Moreover, the potential for business models beyond low-Earth orbit, such as on the Moon, remains uncertain.
Another risk involves ensuring sufficient and affordable access to space. Delays and limited launch opportunities could discourage commercial activities in space. As launch capacity increases, managing space debris becomes crucial, requiring international cooperation and compliance with non-binding agreements. Experts highlight the disadvantage for companies that adhere to costly debris mitigation protocols if others do not follow suit. Cynthia Bouthot, President of Space Commerce Matters, elaborates on these phases of space exploration and the associated business risks, emphasizing the need for coordinated efforts to foster a sustainable space economy.
Companies are an essential player in the development of the space industry, but they also face risks that they must take into account.
The main business risks faced by space industry are:
- a lack of human capital, both in terms of engineering positions and in terms of management positions. How do you attract that talent? How do you prevent them from going to other markets where they can earn more money and social recognition?
- adaptation of business models, to be able to develop business models that convince investors, regulators and potential employees that it makes sense to do things in low-Earth orbit; if there is a viable business model in satellite constellations, then there have been multi-billion dollar investments to date that have achieved absolutely nothing, even launch a single satellite. It is also necessary to assess whether there can be a business model on the Moon or beyond Earth orbit.
- availing more access capacity to space to prevent delays in the availability of launch gaps from negatively influencing the willingness of companies, institutions and other organizations to develop commercial activities in space. That capacity also has to come at an affordable price.
- Coordinateing the space management, time that increase in capacity will mean that there are more and more problems with space debris, which will require an international effort to coordinate and monitor compliance with the agreements in this regard. In fact, our experts point out that it is a disadvantage to comply with space debris protocols – because they are more expensive missions – if others do not do them and no one obliges them and the agreements in this regard, from the beginning of this decade, are not binding.
In this speech, our expert Cynthia Bouthot, President of Space Commerce Matters, explains the different phases in space exploration and why companies should go to space and its Business risks:
Presidente en Space Commerce Matter