Investing in Space Technology Stocks

Key Highlights

• Space technology developed back in the 1950s 
• Some of the main applications of SpaceTech include navigation, telecommunications, weather forecasting, or air quality monitoring 
• High-profile entities, such as government agencies or multi-billion dollar corporations are contracting SpaceTech companies
• In the future, space technology has the potential to facilitate humanity’s expansion to other planets and exploration of the galaxy 

The History of Space Technology

Space technology has developed in leaps and bounds since the 1950s and 1960s when humans first traveled into space. What started as an ambitious idea to put a man on the moon has turned into one of the most important and influential industries in the world. Here’s a look at some of the key moments in space technology history:

1957 – The Soviet Union launched Sputnik 1, becoming the first country to send a satellite into orbit around Earth. This event sparks widespread interest in space exploration and begins humanity’s journey into outer space.

1969 – Neil Armstrong becomes the first human to walk on the moon during the Apollo 11 mission. This event is seen as a major milestone for human achievement and further advances our understanding of outer space.

1981 – NASA launches Space Shuttle Columbia, making it possible for humans to travel into orbit without having to use rockets powered by dangerous explosives like those used by early astronauts like Yuri Gagarin or Alan Shepard. The Space Shuttle program continued until 2011 when it retired after completing 135 missions over 30 years.

1998 – NASA launches the Mars Climate Orbiter, a spacecraft designed to study the Martian climate. However, the orbiter was lost due to a malfunction caused by incorrect calculations made by one of its subcontractors. This event highlights the importance of ensuring accuracy in space technology projects and underscores the dangers of making mistakes when operating in such an unforgiving environment.

2013 – SpaceX became the first private company to send a spacecraft (the Dragon) to dock with the International Space Station. This achievement demonstrates that commercial entities can play an important role in space exploration and opens up new opportunities for innovation within this field.

Today, space technology is more important than ever. From telecommunications to weather forecasting to GPS navigation, space-based systems are essential for modern life. With continued advances in this field, there’s no telling what possibilities will be unlocked in the years ahead.

SpaceTech’s Potential and Value

The potential for space technology is huge and there are many areas where it could be applied. Satellite navigation is already being used in a wide range of applications, from cars to smartphones. Telecommunications also has a large number of potential applications, including broadband Internet, mobile phone networks, and satellite TV. 

Earth observation can be used for a variety of purposes, such as monitoring climate change, tracking natural disasters, and managing resources. Weather forecasting is becoming increasingly important as our reliance on weather-dependent activities (such as aviation) increases. Traffic management and air quality monitoring are both growing sectors that could benefit from the application of space technology.

The commercial value of space-based services is expected to grow significantly in the next few years. This presents a huge opportunity for businesses that can tap into this market. There are already several companies that offer space-based services, such as satellite navigation and telecommunications, and there is likely to be further growth in these sectors in the coming years. The military sector is also expected to grow rapidly due to increasing global security concerns.

SpaceTech: Products, Technologies, Trends and Innovations to Watch

Space technology is a highly complex niche that comprises a whole host of different tech domains. Some key areas of development include:

Satellite Communications – Satellite communication systems provide high-bandwidth voice and data communications to users around the world. They play an important role in both military and civilian applications such as television broadcasting, Internet access, telephone service and disaster relief efforts.

Navigation Systems – Leveraging satellite signals to provide precise location information to users on land or at sea, navigation systems are deployed extensively in commercial shipping operations and by the military for precision targeting purposes.

Earth Observation Satellites – Earth observation satellites collect data about the Earth’s surface features and climate patterns using various sensors such as optical cameras, radar instruments, etc. This data is used for a variety of purposes including mapping natural resources, monitoring environmental changes, and predicting weather patterns, etc.

Robotic Spacecraft Technology – Robotic spacecraft are unmanned vehicles that can be sent into orbit around other planets or moons to conduct scientific investigations or deploy equipment onto their surfaces. NASA and other space agencies use these extensively for exploring the solar system.

Artificial Intelligence – Artificial intelligence technology is being increasingly deployed in space-related applications such as spacecraft navigation, data analysis, and mission planning. 

SpaceTech’s Future: Opportunities and Catalysts

The space industry is growing rapidly, with a market value that has the potential to run into hundreds of billions of dollars within the next two decades. Several factors are driving this growth, including the increasing demand for satellite-based services, the rise in private investment in space ventures, and the development of new technologies that are making it easier to explore and exploit outer space.

Some key opportunities and catalysts in SpaceTech include:

• The development of reusable spacecraft – One of the biggest challenges facing the space industry is developing spacecraft that can be reused multiple times. SpaceX has made some significant strides in this area with its Falcon 9 rocket, which has been used to launch dozens of payloads into orbit. Other companies are also working on reusable spacecraft designs, which could help reduce costs and make access to outer space more affordable for businesses and consumers alike.
• The growth of small satellites – Small satellites (or “smallsats”) have emerged as a major force within the space industry in recent years due to their low cost and versatility. Smallsats can be used for a variety of purposes, such as Earth observation, communications, or navigation. As technology continues to improve and costs come down further, we can expect even more widespread adoption of smallsats to support a wide range of applications, including IoT and 5G networks.
• The expansion of commercial activity in outer space – Private enterprise is playing an increasingly important role in exploring and exploiting outer space through initiatives such as asteroid mining and tourism. This trend is likely to continue over the next few decades as investors become more confident about the potential returns from commercial activities in outer space.
• The development of new space technologies – One of the most exciting aspects of the space industry is the constant flow of new technologies that are being developed to support various applications. Some examples include advanced robotics, artificial intelligence, and nanotechnology. These innovations are likely to play a key role in enabling future exploration missions and expanding our understanding of outer space.

The Space Industry’s Blindspots and Challenges

The space industry is growing rapidly, but it faces several challenges and blind spots. These include:

• High cost of launching payloads into orbit: This has limited the growth of the space industry and its ability to bring down the cost of accessing space. As a result, many new companies are focusing on developing reusable spacecraft or alternative launch technologies to reduce the costs of transportation in space, such as electromagnetic propulsion or other methods of non-rocket space launch techniques.
• Lack of infrastructure in low Earth orbit (LEO): LEO is currently used for satellite deployment, research and development, and testing of new spacecraft and technology. However, there needs to be more permanent infrastructure in this area which hampers commercial activity. Developing more reliable and affordable ways to get cargo into LEO would help address this issue.
• The debris problem in outer space: A growing amount of debris orbiting Earth could potentially damage satellites or even human habitats in space. Addressing the problem of orbital debris will be critical for ensuring sustainable growth within the space industry.
• The limited human presence in space: So far, only a handful of countries have sent people into orbit. Developing the necessary infrastructure and training for sustainable human habitation in space will be a major challenge for the industry in the future.

SpaceTech’s Clients

SpaceTech provides services to a broad addressable market, including government agencies, commercial entities, and non-profit organizations. Some notable examples include:

The United States Air Force, NASA, Lockheed Martin, The Boeing Company, Blue Origin LLC, and Virgin Galactic LLC.

SpaceTech’s Impact on Other Industries

SpaceTech has a significant effect on other sectors, including:

• The technology sector, as SpaceTech enables the development of new technologies for use in space and beyond;
• Communications – is often the origin point for solutions that then turn into communication systems used beyond the space industry;
• Defense is another sector that is affected by new SpaceTech solutions, which are often used in the development of new military equipment.

What Is the Market Potential for Space Technology?

Space technology continues to attract growing interest from various sectors due to its immense potential for revolutionary breakthroughs. Up till a decade ago, space was considered the final frontier, exclusively delimited to governmental agencies. Today, thanks to technological advancements, it's becoming the playground for several commercial entities. 

The market potential for space technology is estimated to reach $1 Trillion by 2040, according to a report by Morgan Stanley.¹ This projected growth is driven by a multitude of sectors, such as satellite broadband, space tourism, asteroid mining, and more. Moreover, space technologies are becoming increasingly critical in tracking and responding to climate change and supporting global communication systems.

The rise in earth observation and communication satellites offers the potential for significant market growth, as evidenced by the already discussed use cases of satellite imaging in weather predictions and navigation.

Furthermore, space tourism holds a potentially massive market. Companies like SpaceX and Blue Origin aspire to make commercial space travel a reality, creating opportunities for extensive economic growth.

Key Drivers For Space Technology 

There are several compelling factors stimulating investor interest in space technology stocks. The most enthusiastic driver is the increasing commercialization of space. As we’ve already mentioned, this market niche has the potential to be worth over a trillion dollars in the coming decades. This growth will mostly be driven by satellite broadband technology and the production of spaceships for tourists.

Then there is the matter of the ongoing, massive leaps in technological advances. Continued developments in areas such as microsatellites, reusable rockets, and advanced propulsion technologies are driving down costs and increasing accessibility, making space a new frontier for investment.

Governments worldwide are also championing the cause of space exploration and driving private participation. Countries are liberalizing their space policies to allow private companies to launch satellites and provide other space-related services.

Last but not least, the demand for services such as global broadband internet, earth observation data, and on-orbit servicing is amplifying. These factors, buoyed by a push towards interplanetary human habitation and resource mining, add up to make investing in space tech an attractive proposition.

The space tech industry's potential profitability is undeniable based on these drivers. With the market set to experience astronomical growth, it is time to consider these stocks seriously for long-term potential. The race towards new spacescapes for commerce is just starting, and savvy investors stand to make significant returns on their initial stakes in these early stages.

Space Tech Investment Opportunities with OurCrowd 

As an OurCrowd investor, you’ll have the unique opportunity to put your money into space technology stocks of companies that are some of the most promising and exciting businesses in this industry. 

Working in the areas of rocket propulsion, satellite imagery, or space tourism, these up-and-coming Space Tech firms have the potential to become true powerhouses in their respective fields. Below, you can find a few examples of the companies and funds that we work with. 

Edgybees 

Through the combination of 3D video generation, computer vision, and multi-sensor data analytics, Edgybees’ proprietary AI software brings their clients up-to-date situational images of the highest quality. Their tech leverages satellite images and real-time videos to merge data with imagery, enabling faster, more accurate decision-making. 

In fields such as climate change tracking, critical infrastructure monitoring, or insurance surveys, pin-point accuracy is of the utmost importance. Edgybees’ software corrects the accuracy of GPS data down to 2 meters, from the previous limit of 50 meters, all the while maintaining the quality and usability of the images. 

Axiom Space 

As one of the companies tasked with building the successor to the International Space Station (itself due to be decommissioned by 2030), Axiom Space has already proven its worth as a space technology contractor at the highest possible level. 

Knowledgeable in the areas of engineering, astronaut training, microgravity utilization, and much more, Axiom’s team of professionals is more than capable of taking the company to even greater heights. 

Balerion Space Ventures Fund 

Specializing in early to mid-stage space technology companies, the Balerion Space Ventures Fund aims to propel exciting, new ideas forward, with the ultimate goal of helping commercialize space. After the first round of funding, they’ve already made 10 investments with multiple markups. Their co-investors include giants such as Blackrock, Fidelity, and Lockheed Martin. 

How to Invest with OurCrowd

Working with OurCrowd makes investing in cutting-edge space technology stocks easier than ever before. So, what exactly do you need to do to gain access to our premium, pre-IPO stocks? 

1. Create your free OurCrowd investor account. 
2. Browse through our array of space technology companies. 
3. Assess each company page to see which investment opportunity suits your preferences. 
4. Put money into your OurCrowd account and make an investment. 
5. Check your portfolio every quarter for performance updates.

That’s it! With OurCrowd, investing in revolutionary space technology stocks is easier than ever. Join us today, to gain access to the most promising companies and get ahead of the market! 

References

1. https://www.morganstanley.com/ideas/investing-in-space