The NOAA Office of Space Commerce (OSC) discuss how strategic investments and innovation are driving the rapid growth of the US space economy.
The space industry has evolved from a niche sector into a global economic driver, reshaping industries and inspiring technological advancements that impact our daily lives. As space becomes more accessible through advances in technology and collaboration, the US is positioned to lead this transformation.
Expanding the space economy is not just about exploring new frontiers—it’s about harnessing the potential of space to drive innovation, economic growth, and national security. To find out more, we spoke to the OSC to delve into how strategic investments and policy developments are shaping the future of the US space economy and ensuring its long-term success.
Please can you explain the importance of reinforcing and growing the US space economy?
The space industry is a rapidly expanding economic powerhouse. According to the Bureau of Economic Analysis, the US space economy accounted for $232.1bn of gross output and $54.5bn of private-sector compensation and supported 347,000 private-sector jobs in 2022.
Increased commercial space activities, satellite launches, and government investments in space exploration and development fuel this substantial growth. The sector encompasses a wide range of activities, including satellite manufacturing, deployment, and servicing; lunar exploration; infrastructure development in low Earth orbit (LEO) and cislunar space; remote sensing; communications infrastructure; data processing, analytics, and AI.
These advancements have created numerous commercial opportunities across various domestic and international industries. Beyond immediate commercial benefits, space-related research and development continues to drive innovation, foster workforce development, and promote economic growth. Strengthening and expanding the US space economy is not just essential, but it is our responsibility to maintain our nation’s global technological leadership and drive economic prosperity across all sectors.
What are the key trends and opportunities that are driving growth in the US space economy today?
A broad range of industries are supported by the space economy. These industries include defence, agriculture, transportation, manufacturing, healthcare, and banking. The space economy has prompted the incredible expansion of use cases in highly commercialised areas such as location data, communications, and Earth imaging. Additionally, the commercial space industry boom has been amplified by the increased demand and decreased launch cost through technological enhancements, government investments and partnerships, the broad utilisation of space data and AI-powered space systems, and broad-based international cooperation. This has resulted in expanded opportunities for companies to innovate and commercialise new applications for existing space technologies, as well as create and operationalise new ones.
How does the OSC work to enhance US competitiveness in the global commercial space industry and strengthen its presence in international markets?
As the number of countries and commercial firms involved in space activities and the variety of objects they launch into space increases, partnership with our international allies is essential to ensure a sustainable environment.
The Office of Space Commerce:
- Organises government-industry engagements with countries around the world to identify opportunities and address barriers to increased commercial space cooperation.
- Advocates for industry-friendly policies within the US Government.
- Develop policies to ensure the safe and sustainable use of space for all users – including the development of a global system of space situational awareness (SSA) providers.
- Is rolling out Traffic Coordination for Space (TraCSS), the USG safety-focused SSA system, to do just that.
- Operates a responsive, light-touch regulatory system for commercial remote sensing systems.
How is the Office adapting regulatory and policy frameworks to keep pace with the rapid developments in space technology?
Innovation in technology and application within the space ecosystem continues to get faster. This demands the government to stay agile, performance and results-oriented, and willing to try new things, just as industry does. The regulatory priorities should be balanced to support the public interest while striving not to stifle innovation. In addition, the space economy consists of global participants, requiring collaboration and cooperation with international and domestic partners.
International standards, regulatory frameworks, and norms of behaviour are critical factors for long-term sustainability and success for all nations. To that end, the OSC has developed and is socialising our “Vision for Global SSA Coordination,” which outlines OSC’s work toward an open and transparent international system that enables coordination on SSA to ensure reliable and efficient services to global spacecraft operators.
We are also preparing to implement a regulatory system for “novel space activities.” The White House, Congress, and industry have all signalled that they believe OSC is the appropriate regulator for emerging commercial activities like satellite servicing, in-space manufacturing, and space resource utilisation. Congress is considering various proposals now, including those that were released by the White House last year. In preparation for those expanded authorities, we are working closely with industry – including through our newly-formed advisory committee ACES – to understand the needs of operators.
Space safety and sustainability are becoming increasingly essential. What are the key areas and innovations the US is targeting to enhance the safety and sustainability of its space operations?
Space debris mitigation and satellite safety are critical areas of concern for all nations as participation in space becomes more prevalent and more governmental and private actors join in. The Office of Space Commerce is committed to working with its international partners, government partners, and the industry to ensure the sustainable use of this precious resource.
In 2025, OSC will deliver the first phases of TraCSS, which will provide civil and private space operations with basic SSA data and services. Additionally, OSC regularly conducts conversations with our partners worldwide to support the safe operation of space assets and the sharing of critical safety and object location and disposition information. The OSC sees these activities as critical in maintaining a safe and sustainable environment.
The US is investing in supporting small and medium-sized businesses, workforce training, and space R&D, innovation, and manufacturing. Why is investing in these elements essential for growing the nation’s space economy?
US small and medium businesses have always been the mainstay of the American economy. These businesses create significant jobs, catalyse innovation, and are the point of origin for commercialising new ideas. As the space economy quickly leaves the sole auspices of governments and becomes more both a public and private endeavour, contributions from American small and medium businesses become more critical in maintaining US competitiveness in the global space ecosystem.
Supporting and promoting these businesses and the academic programmes that provide them with the technical and practical expertise they need to succeed is critical in ensuring that the US has what it needs to remain the world leader in space technology, operations, and innovation.
A particular focus is on boosting space-based Earth observation capabilities. What are the benefits of investing in this technology for the US?
The benefits of space-based Earth observation capabilities are limitless. Remote sensing enables acquiring information on a wide area at once and where localised data collection is expensive or impractical. From monitoring disasters, forecasting weather, evaluating climate and helping to optimise resource exploration and management to infrastructure planning, space-based observations are enhancing the ability of governments, industries, and researchers to know more about the world we live in and how to live and use it in more sustainable ways.
Investments and resulting innovations in remote sensing technologies help provide critical information so that everyone can make more informed decisions, and the US can maximise its activities in environmental management, national security, economic development, and scientific research. Commercial remote sensing capabilities can also help us achieve national goals, including security, environmental protection, and disaster response.
What is the long-term vision for the US space economy, and how does the OSC plan to achieve it over the next decade?
The Office of Space Commerce’s focus on promoting US competitiveness in the space economy takes on three primary activities: First, using data, engagement with US industry partners, communities, and academic institutions, OSC helps guide policy and governance that promotes broad-based participation, economic success, and sustainability for US businesses participating in a global space economy.
Second, through participation with foreign partners and nation-states, OSC works cooperatively to ensure that space utilisation remains sustainable and safe for all. Lastly, OSC acts as a conduit of information to private and public partners, helping to translate highly technical and sometimes esoteric concepts and language into a manner that can be understood and translated into action by both our governmental and private sector partners. This leads to a fuller understanding of space, its opportunities and challenges, and how we can work together to utilise it better.
