The Modern Space Race

In the not-so-distant past, space was a playground only for governments with deep pockets and Cold War rivalries. Today, it’s an economic battlefield where private companies race to turn rockets into revenue and satellites into subscriptions. The stakes? A space economy is expected to hit over $600 billion by 2030, with nearly 80% of that value already coming from commercial ventures. The space race is no longer about planting flags. It’s about securing market share — and doing it before you run out of cash or fuel.

Leading the charge is SpaceX. Elon Musk’s company pulled in $14.2 billion in revenue in 2024 alone. The real star, though, is Starlink — SpaceX’s satellite internet project — which made up more than half of that total. With over 7,800 satellites already in orbit, SpaceX now operates more than 60% of all active low-Earth orbit (LEO) satellites. Launching has become cheaper and faster thanks to reusable rockets like the Falcon 9, which slashed costs from $100 million per launch to under $15 million. SpaceX didn’t just disrupt the space industry — it bulldozed the old model and built a new one on its own terms.

But this isn’t a one-horse race. Behind SpaceX is a growing pack of ambitious startups trying to carve out their own piece of the orbital pie. Firefly Aerospace, for instance, recently landed a lunar lander on the Moon — an achievement it hopes will help it pull off a $5.5 billion IPO. The numbers aren’t pretty: $60 million in revenue against $231 million in losses in 2024. Still, Firefly’s backlog of contracts, worth over $1.1 billion, is keeping investors curious — and cautiously hopeful.

Then there’s Rocket Lab, which is quietly becoming the go-to for small satellite launches. Its Electron rocket is already flying regularly, and its next move is the Neutron rocket, aimed at entering the mid-range launch market. Unlike some of its competitors, Rocket Lab is actually delivering payloads to space — and turning a modest profit while doing it.

The race isn’t just American. India’s space sector is rapidly expanding, fuelled by startups like Pixxel, which has raised more than $95 million to launch a hyperspectral satellite constellation. These satellites don’t just take pretty pictures — they capture detailed data for agriculture, climate, and environmental monitoring. South Korea’s Innospace is launching hybrid rockets for customers across Asia and Europe, while U.S.-based Albedo Space is working in super-low orbit to deliver military-grade resolution to commercial clients.

But for every rising star, there’s a cautionary tale. Companies like Voyager Space, which plans to build a private space station, are burning money fast. In the first quarter of 2025, Voyager made $34.5 million in revenue — while losing nearly the same amount. Varda Space Industries, which dreams of building stuff in orbit (think pharmaceuticals and exotic materials), raised $90 million last year but is still deep in development. The ambition is there. The business model? Still orbiting.

The risks aren’t just financial. Space is getting crowded, and that means debris — thousands of bits of metal, paint, and dead satellites whizzing around at thousands of kilometres per hour. One collision could trigger a chain reaction, taking out everything in its path. Regulations haven’t caught up, and governments are still figuring out how to keep private space actors in check. There’s also the problem of geopolitics. When Musk reportedly restricted Starlink access in Ukraine during a sensitive military operation, it made one thing clear: private control of critical infrastructure in space is a double-edged sword.

Still, the opportunities are massive. Whether it’s satellite broadband, Earth observation, launch services, or in-space manufacturing, the market is expanding faster than anyone predicted. The companies that survive the current frenzy will likely dominate the orbital economy for decades to come.

This new space race isn’t about reaching the Moon — it’s about reaching break-even. And while the rockets might run on liquid oxygen and kerosene, the real fuel behind this industry is cold, hard capital. The frontier is open. Now it’s a question of who can stay in orbit—and who burns out on the launchpad.