Few sectors are as hyped as the space industry. But while banks such as Morgan Stanley forecast the sector will reach $1 trillion by 2040, returns have proved elusive. Projects are astronomically expensive and the risk of failure is high. Our client, a professional services firm, wanted to understand opportunities in space technology across four different industry verticals. The application of space data, in particular, offers opportunities across a wide range of sectors, including energy, industrials, government services, financial services, life sciences, healthcare, telecommunications, media, and technology.
Opportunities in space technology
For each vertical, we started by creating a long list of possible use cases. Working with the client, we honed our focus on the use cases likely to have the most potential for their business. First, we engaged with experts across each of the four industry verticals, who provided us with a comprehensive list of 80 space enabled use cases solving relevant challenges. Our client then streamlined the long list of use cases for us to undertake further analysis.
Assessing use cases for space technology
Across the verticals, there were common themes between products and services. We divided the use cases in terms of technology-push and market-pull. These were then benchmarked against each other from both an attractiveness and a risk perspective.
Working with our experts, we highlighted the relevant enabling technologies and produced technology readiness assessments.
Our specialist team identified 13 product service opportunities and outlined the key challenges that needed to be overcome. Drawing on the expertise of our team of space technology specialists, we mapped the timeline for technology and market maturity over a series of time horizons to assess whether there was a clear business case for investing.
We mapped the timeline for technology and market maturity over a series of time horizons to assess whether there was a clear business case for investing.
Reducing risk in space technology investments
At the end of the engagement, our client had a clear idea of which opportunities offered the highest and lowest barriers to entry and the relative attractiveness of each one. Armed with this information, our client was able to make better informed decisions about investments in space technology over the next five years and beyond.