LONDON: The global space economy is projected to expand to $1.8 trillion by 2035, marking a threefold increase from $630 billion in 2023, new research by the World Economic Forum has found.

Published on Monday, the report highlights that growth is anticipated to outpace global GDP rate by nearly twice the margin, rivaling the scale and influence of the global semiconductor industry, which is expected to grow at a comparable rate.

“Space technologies are delivering greater value to a more diverse set of stakeholders than ever before, including in industries as varied as food and beverage, retail, consumer goods and lifestyle, supply chain and transportation, and even climate disaster mitigation,” said Sebastian Buckup, a member of the executive committee at WEF.

“As costs reduce and accessibility rises, these technologies could reshape whole industries, and have as much impact on business and society as smartphones or cloud computing.”

The report highlights four key findings — space’s economic contribution, its impact extending beyond the “traditional” space sector, the expansion of industries in connecting people and goods, and space’s role in addressing global challenges.

Developed in collaboration with McKinsey, the research indicates that while “traditional” space activities such as space infrastructure, satellites, launches and exploration are expected to increase significantly, their growth rate will be slower compared to space-enabled technologies and Earth-based businesses.

Ryan Brukardt, senior partner at McKinsey & Company, said that a growing number of businesses across various sectors, including agriculture, construction, insurance and climate-change mitigation, would drive the new and expanding space economy.

This rapid surge would be driven by reduced costs and broader accessibility to space-enabled technologies, encompassing various commercial sectors such as communications, positioning, navigation, timing, Earth observation services, tourism and manufacturing activities.

Additionally, the report noted a rapid increase in commercial innovation and investment diversification across various applications.

“By understanding and embracing the full potential of space, public and private industry players can position themselves as leaders in the space economy, unlocking long-term benefits,” Brukardt said.

The report also underscores that while state-sponsored investments will remain the cornerstone of the space backbone, enhanced collaboration between various stakeholders across public and private sectors will be increasingly important to “fully realize” the industry’s potential in the future.

It highlighted the advances made by emerging space nations such as Peru, Thailand and Saudi Arabia, underscoring their significant investments in space technology and exploration over recent years.