Commercial Space

To learn about the global market for commercial space and regulations that impact exports, view the market brief below.

Commercial Space

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Overview

Commercial space products can be broadly classified into four categories: space launch services, communications and remote sense satellites, related satellite services, and necessary ground-based equipment. Space launch services are largely focused on the delivery of satellites or spacecraft (the payload) to space, the transportation of cargo and astronauts to the International Space Station (ISS), and eventually sending passengers into space for space tourism. Commercial communications satellites are those produced and sold for commercial, academic, non-profit, or civilian purposes (via commercial contract), and not primarily for military use. Remote sensing satellites image the earth by scanning various parts of the spectrum, including light, infrared and radio frequencies. Satellite services composes the largest share of the commercial space market, and includes communications, broadband internet, direct-to-home television, radio, and imaging/mapping services. Most satellites services require the use of ground equipment or receivers as well.

The Office of Transportation and Machinery’s Aerospace Team helps commercial space companies identify and capitalize on global business opportunities. We work to reduce trade barriers and align industry needs with market analysis, identification tools, and resources to compete internationally. Contact us to learn more.

This webpage provides an overview of these markets and offers important information for U.S. companies regarding governing U.S. space policy, standards, and relevant regulations, as well as upcoming events.

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Market Overview

The space market is no longer characterized by a government-led structure. Instead, growth of the domestic commercial market as well as the proliferation of foreign-based space capabilities has created a vastly different international marketplace. With the proactive encouragement of U.S. space policy, many of the operations once dominated by military and government agencies have moved to the commercial sector. Many of the technological capabilities previously exclusive to military use are now dual-use products that benefit the national economy and private consumers.

In general, revenue from global space-based satellite services exceeds $300 billion annually, the majority of which comes from the commercial sector. Around $100 billion of the overall international revenue is generated by space-based services, such as satellite radio and television. Satellite manufacturing and the space launch industry are comparatively small with space launch accounting for around $5 billion and satellite manufacturing for around $12 billion. The increase in private enterprise growth internationally is now significantly larger than government spending on space programs; of the more than 1,300 operational U.S. satellites 70% are for commercial use. International government spending has been generally consistent over time and is currently around $80 billion per year, of which the U.S. government makes up approximately 60%.

U.S., European, Russian, and Japanese firms are dominant players in the space marketplace, but India and China are quickly catching up in capability. Currently 75 countries operate satellites, while eight countries and the European Space Agency have domestic space launch capabilities. Additionally, the global space economy consists of more than 50 nations that have purchased and currently operate satellites. Many governments, like the United Arab Emirates and South Korea, now prioritize the development of a domestic commercial space industry as a means to securing national security and economic growth.

Government resources for the commercial space industry:

Industry associations that provide support and market outlook information include:

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Market Overview - Space Launch

Space-based activities once solely undertaken by the government have found new homes in the innovative world of private enterprise, and the space launch industry that enables those activities has evolved concurrently. Today, in addition to the long-standing workhorse U.S. launch vehicles, start-ups across the United States, and the world, are competing to meet the growing demand from space-based satellite services on which society is increasingly dependent.

From 2010 to 2020, the market for commercial space launches changed dramatically for several reasons. Following the retirement of the Space Shuttle program, new U.S. policies encouraged the government to rely upon commercial launch providers for the transportation of both cargo and astronauts to the International Space Station. At the same time, new micro and nanosat technologies allowed entrepreneurs and academia to develop large numbers of small satellites, increasing commercially licensed launches by 100% between 2016 and 2018. It is not yet apparent how COVID-19 will impact future launch market growth, especially because most satellite and launch vehicle contracts are signed up to two years in advance of launch.

Even with the rapid growth of commercial, low earth orbit (LEO) launch and decreasing launch costs for both governments and businesses, the overall market for geostationary earth orbit (GEO) space launch services is finite, with only around 20-25 competitive launch contracts available globally per year. The major market segments for the space launch industry are large satellite launch (such as large communication or government satellites), human space flight, and low-cost small/scientific satellites.

European and Russian firms are competitive players in the space launch market, with China and India also competing for market share. U.S. firms face strong and growing competition in the international marketplace.

For more information on the launch industry see:

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Market Overview - Satellites

With the development of ‘small-sat’ technology, the prominence and growth of the satellite industry has expanded substantially. The commercial satellite industry is no longer dominated by large multimillion-dollar communications and earth imaging satellites; the miniaturization of the technology has opened the market to innovative and new commercial possibilities. This recent proliferation led to the designation of the Department of Commerce’s Office of Space Commerce as the lead civilian agency providing Space Traffic Management (STM) and space situational awareness (SSA) services to commercial space operators. While there has been recent, significant industry growth, market outlooks developed prior to COVID-19 may require revision and any impact on the satellite industry is yet to be fully quantified.

In 2020, there were 2,000 active satellites in orbit which operate primarily in three specific orbits: Low-Earth orbit (LEO), Medium-Earth orbit (MEO), and Geosynchronous-Earth orbit (GEO). Most activity takes place in LEO, with roughly 1,300 satellites between 300-1,000 km above the Earth. These satellites are commonly used for Earth observation, weather monitoring, and mobile communication services. LEO is also the orbit with the greatest potential for growth, due to a growing demand for imaging, location, and broadband services. LEO satellites are often less expensive but generate less revenue per satellite than those in GEO or are used for scientific or academic purposes. There are only around 75 satellites in MEO, which is primarily used for GPS services. GEO has approximately 430 satellites operating around 36,000 km above the earth, with the unique ability to remain over a single point above the earth and maintain a signal with, or visual over, a specific area. Satellites in GEO are most commonly used for telecommunications.

For more data on the satellite industry see:

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Satellite Services

The services provided by satellites are indispensable to daily life, underpinning global economic activity and critical functions of national security. Satellite services can be categorized into four main segments: telecommunications (including television, telephone, broadband, aviation, maritime, road and rail), remote sensing (including agriculture, change detection, disaster mitigation, meteorology, resources, and earth science), space science, and national security.

Market Overview

Allied Market Research predicted in September 2019 that the satellite services market was expected to reach $144.5 billion by 2026. In 2019, satellite services accounted for $123 billion in global revenues, slightly lower than the previous year, but still more than one-third of the global space economy and 45% of the satellite industry according to the Satellite Industry Association (SIA). The U.S. holds 41% of the global market share for satellite services, with $49.9 billion in revenue in 2019.

There are two main dynamics shaping the satellite services industry according to SIA’s State of the Space Industry Report. First, a nearly threefold increase in satellite communications capacity in orbit has enabled new services, including in-flight and cruise ship connectivity, as well as the growing Internet of Things. Drawn by faster speeds, broadband customers have grown by 1.6 million since 2010. Second, a thirty-fold increase in active commercial remote sensing satellites since 2010 has diversified choices and created sophisticated capabilities like higher image resolution and data analytics services.

COVID-19 Impact

The extent of the COVID-19 impact on the satellite services market is not yet quantified. Unlike some other sectors, however, COVID-19 has actually emphasized the importance of satellite services. Remote work has increased demand for broadband connectivity, while satellite imagery has been leveraged to forecast shortages in supplies, identify potential hotspots, and track economic recovery through maritime traffic. The pandemic has even encouraged greater collaboration, spawning a joint venture between NASA and international partners in Europe and Japan to create a COVID-19 Earth Observation Dashboard.

Accordingly, the market for satellite services is expected to remain strong, or bounce back quickly, in some segments. Quilty Analytics predicts that satellite consumer broadband, providers of services to first responders, civil agencies, and NGOs would prove highly resilient despite COVID-19, while premium service providers of SATCOM to business aviation and superyachts would be more variable, initially impacted by the looming recession but rebounding as consumers return to luxury travel. The services expected to experience a prolonged pandemic-related impact include commercial in-flight connectivity and cruise ship providers, as well as energy and natural resources providers.
COVID-19 has underscored the importance of satellite services.

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Space Industry Trade and Related Events

For more information on specific trade shows and Department of Commerce presence at upcoming events please contact us through the Aerospace Team’s main page.

Upcoming Commercial Space Events:

Space Symposium, August 23-26, 2021, Colorado Springs, CO
https://www.spacesymposium.org/

International Astronautical Congress 2021, October 25-29, 2021, Dubai, UAE https://www.iafastro.org/events/iac/iac-2021/

Navy League Sea Air Space (SAS), August 1-4, 2021, National Harbor, MD https://seaairspace.org/

AIAA Aviation Forum and Exposition, June 7-11, 2021, Washington, DC https://www.aiaa.org/aviation

SmallSat Symposium, February 8-11, 2021, San Francisco, CA
https://2020.smallsatshow.com/

NewSpace Conference, 2021, Houston, TX
https://spacefrontier.org/newspace2020/

The list of upcoming space related events is not exhaustive. If you see an event you believe should be added to this list, please contact us.

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Policy Points

The commercial space industry is highly regulated because it involves state-of-the-art technology and has potential military applications. The U.S. Government works diligently to promote a vibrant business environment for U.S. firms, while ensuring the safety of the American people and curbing the proliferation of potentially dangerous technologies.

The National Space Policy of the United States of America outlines the overarching goals and priorities of the U.S. Government for the development of a successful, safe, and competitive commercial space industry alongside priorities for civil and military space programs. In addition to the overarching National Space Policy, several sector-focused national policies address priorities like space transportation, satellite remote sensing, and space-based positioning, navigation, and timing (PNT). Links to specific U.S. policies can be found below.

There are many agencies that execute U.S. space policy and the landscape can be difficult to navigate. The Regulations and Standards Pages (link to Regulations and Standards Pages) provide more information on which government agencies may be relevant to your product.

The Department of Commerce Office of Transportation and Machinery’s Aerospace Team and the Office of Space Commerce promote the success of U.S. commercial space businesses and work with businesses of all sizes to navigate the domestic regulatory landscape and international market issues to fulfil commercial goals abroad. See the Contact Us page for more information.

United States National Space Policies:

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Regulations

Within the Department of Commerce, a variety of offices work on space commerce matters:

The International Trade Administration’s (ITA) Office of Transportation and Machinery (OTM) Aerospace Team promotes the export of U.S. commercial space products and works to reduce international market barriers.
The Office of Space Commerce promotes the commercial space industry and facilitates the industry’s interactions with the U.S. government and foreign countries.
The Bureau of Industry and Security (BIS) administers export controls for dual-use space technologies.
NOAA’S Commercial Remote Sensing Regulatory Affairs Office (CRSRA) regulates and licenses space-based commercial remote sensing.
National Telecommunications and Information Administration (NTIA) Office of Spectrum Management (OSM) protects federal government operations that use spectrum while also supporting the growth of commercial wireless broadband.

Other agencies that regulate commercial space:

The Directorate of Defense Trade Controls (DDTC) at the Department of State administers export controls for defense exports, a process similar to that of BIS for dual-use products. See the export controls section below for more information on export controls and resources to determine if your product is regulated by BIS or DDTC.
The Federal Aviation Administration (FAA) licenses launch and reentries.
FAA Active Licenses
The Federal Communications Commission (FCC) regulates the use of spectrum frequencies for communications used by commercial satellites.

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Export Controls

The Bureau of Industry and Security (BIS) at the Department of Commerce administers the Export Administration Regulations (EAR) which control the export of dual-use products, those with commercial or military uses, on the Commerce Control List (CCL). The majority of commercial space products are classified as dual-use and fall under the purview of BIS. The CCL is broken down into ten broad categories, of which Category 9 (Aerospace and Propulsion) contains most dual-use controlled spacecraft and related items for export.

The Directorate of Defense Trade Controls (DDTC) at the Department of State controls exports through the administration of the International Traffic in Arms Regulations (ITAR) which controls military equipment listed on the United States Munitions List (USML). The two most common categories for the commercial space industry are Category IV - Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs, and Mines and Category XV - Spacecraft and Related Articles.

For a guide on how to determine your product’s export license classification and how to apply for a license please see the Introduction to U.S. Export Controls for the Commercial Space Industry.

U.S. regulations align with several major multilateral control regimes which are relevant to commercial space, these include the Missile Technology Control Regime (MTCR), and the Wassenaar Arrangement, which promotes transparency in transfer of arms or dual-use technologies.

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Standards

The United States is the leader in the development of global standards for the commercial space industry that promote safety, quality, and innovation. Global commercial space standards continue to be refined through work with partner nations, multilateral institutions, and safety groups.

National Institute of Standards and Technology (NIST) promotes innovation and industrial competitiveness through development of standards as a non-regulatory agency in the Department of Commerce.

NIST provides workshops and reports to industry technical and management issues in various forums. See upcoming NIST Events for virtual or local opportunities.

ASTM International promotes global standards that provide public safety and quality as an international technical standards organization working across industries.

ASTM F47 International Committee on Commercial Spaceflight

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Data Collection

In February 2020, the Bureau of Economic Analysis launched a project to more accurately measure the U.S. space economy. The Space Economy Satellite Account provides a refined measurement of the various industries that work with the space industry and show the extent of the impact of the space industry on the overall US economy. Learn more at BEA’s website.

FAA Commercial Space Data provides interactive metrics of the state of the commercial space industry.

HTS Codes for the Commercial Space Products Industry

8802	Other aircraft (for example, helicopters, airplanes); spacecraft (including satellites) and suborbital and spacecraft launch vehicles:
8802.60	Spacecraft (including satellites) and suborbital and spacecraft launch vehicles:
8802.60.30	Communications satellites
8802.60.90	Other
8803	Parts of goods of heading 8801 or 8802:
8803.90.30	Parts of communications satellites
8803.90.90	Other
9104.00	Instrument panel clocks and clocks of a similar type for vehicles, aircraft, spacecraft or vessels:
9808.00.80	Goods certified by it to the Commissioner of Customs to be imported for the use of the National Aeronautics and Space Administration or for the implementation of an international program of the National Aeronautics and Space Administration, including articles to be launched into space and parts thereof, ground support equipment and uniquely associated equipment for use in connection with an international program of the National Aeronautics and Space Administration, including launch services agreements

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