Space: the race is on

Space is a hot topic, the next frontier for both defence and data. Space is becoming an increasing military priority but crucially the digital infrastructure in the sky that is being created will be inherently dual use. The importance of space centres around big data. Satellites can help connect the unconnected and play a crucial role in mitigating world challenges. Falling launch costs mean enhanced access to data and increased use cases. As a result, the global space industry is already worth over $600bn and is set to roughly double in value over the next 20 years. However, the path forward for the industry is unlikely to be linear given its technological complexity and accident-prone nature. The geopolitics of space remains highly contested too. Nonetheless, investors remain keen to gain exposure, with venture capital deals hitting a record level last year. With SpaceX still private, there are few major listed plays at present beyond Rocket Lab. Ultimately, the data providers of content and services may be the biggest beneficiaries. For now, the race is on.