Investment bank Morgan Stanley expects 2019 to show "key milestones and catalysts [in the new space sector]"
and advises its customers to "pay attention to space companies".
Meaning of "NewSpace"
The term NewSpace has clearly meant somewhat different things to various people over the years of the 2000s when the term picked up usage.
Satsearch conducted research to better understand how the term NewSpace
is used across the space industry and in popular understanding globally
during 2018–19. They reported that the common consensus is that
"NewSpace is an approach that focuses on lowering the barriers to entry
to space industry, by providing cheaper access to space [and] more
high-quality and affordable data from space that can be put to use here
on Earth, for the benefit of scientists and the general public. ...
[One] of the major characteristics of the NewSpace era [is the] the
fundamental shift from an industry which was heavily dependent on
government agencies (and taxpayers’ money) to a more agile and an
independent private sector that relies on innovation, working with much
smaller budgets than the early space industry.
HobbySpace, awarded the 2007 ‘Best Presentation of Space’ by the Space Frontier Foundation, came up with the following:
list of characteristics which would help determine whether a particular endeavor is considered as a NewSpace approach. They mainly include the following:
- Focus on cost reductions
- An assurance that the low costs will pay off
- Ensuring incremental development
- Foray into commercial markets with high-consumer rates
- Primary emphasis on optimizing operations
- At the heart of it all, innovation
History
The Space Race,
which began in the mid-1950s and gave birth in earnest to spaceflight,
was famously a manifestation of the then larger politico-economic
competition between capitalism (represented by the United States) and communism
(represented by the former Soviet Union). For this reason, from the
very beginning, the American business establishment—particularly those
bellwether private firms directly involved in the U.S. space program—has
championed the private development of space and space activity. In
1961, writing as one of the deans of the American business
establishment, Ralph J. Cordiner, then chairman of General Electric
(a blue-chip, charter-prime contractor to NASA and the U.S. space
program), contributed a chapter titled "Competitive Private Enterprise
in Space" to the anthology Peacetime Uses of Outer Space.
While recognizing at the time the realities of having to initially rely
on the U.S. government's vast and convenient organization, resources,
and power in order to effectively address the immediate Soviet space
challenge, Cordiner nonetheless advocated private sector dominance—ultimately—of space activity, consistent with textbook American capitalist ideals.
Syncom, Hughes Aircraft Company's commercial communications satellite
system, was originally conceived as a direct competitive response by
American private industry to the Soviets' successful deployment of Sputnik in 1957, the Cold War event that triggered the Space Race. While Syncom was eventually successfully deployed in 1963, Dr. Harold Rosen, the Hughes engineer responsible for developing, championing, and spearheading Syncom (also brother of Ben Rosen,
a pioneering Silicon Valley venture capitalist and entrepreneur, and
Wall Street technology analyst), cited a general lack of confidence in
the U.S. government's early launch capabilities. He later explained the
Syncom project's lengthy gestation period:
This was not the most auspicious time [late 1950s] to propose a commercial space program...The most vivid impression most people then had of space-related activities was of rockets blowing up at Cape Canaveral.
1980s: U.S. commercial space policy and enabling legislation
Notwithstanding
the free-enterprise sentiments and preferences of American industry,
space remained a firmly government-controlled and -directed endeavor
well after the capstone Apollo moon landing in 1969.
The term "alt.space" was first used in the early 1980s to describe
companies that were at last beginning to take up Cordiner's mantle and
make serious efforts to reach outer space
without needing or relying on the cooperation of NASA or other
governmental agencies (or, by extension, even their major contractors);
efforts which were catalyzed by an historic shift in U.S. policy
favoring private space activity, culminating in the landmark Commercial Space Launch Act of 1984.
Beyond the terminology—"alt.space", "private space", "NewSpace," or
"new space"—since the 1980s, the philosophy of various organizations
(such as the Space Frontier Foundation
in the United States) has been one of "extolling the virtues of Solar
System settlement and operating independent of bureaucratic government
programs".
1990s: Post-Soviet U.S.-Russian private space ventures
The
seeds of today's NewSpace were brought to fruition by the collapse of
the former Soviet Union in 1991 and the releasing of that former rival-superpower's
iconic, state-owned, and otherwise mature and proven space assets,
technologies, capabilities, and services onto the world's private
markets with the assistance of a handful of largely American private
firms; notably these core-four: International Launch Services (f/k/a Lockheed-Khrunichev-Energia Int'l; Lockheed Martin JV; Proton; est. 1993); Commercial Space Management Co. (CSMC; Energia, Zenit, RD-170; est. 1993); Sea Launch (Boeing JV; Zenit; est. 1995); and MirCorp (Mir, Soyuz, Progress; est. 1999).
Until that moment in world industrial history, no private business
enterprise or entrepreneur could rightly conceive of, for example,
leasing—or possibly owning and operating—an orbiting space station, such
as Mir, or even just ordering a space launch in the ordinary course of
business.
(Until then, even for a telecommunications giant, like AT&T, placing a commercial communications satellite in orbit,
for example, was a fairly monumental undertaking. Contrast that with
today, when a $100 million space launch vehicle can now be specified,
built, priced, ordered, and eventually even launched online through, for
example, United Launch Alliance's RocketBuilder website.)
Once that industry-wide mental block was removed—once the ease (relatively speaking) and normalization of planning and conducting space activities began to dawn on private industry—the animal spirits
of aerospace capitalism were roused, entrepreneurial vision and
imagination started to abound, and NewSpace began to take shape in
earnest. This set off today's competitive, industry-wide, virtuous cycle of "faster, better, cheaper" (a project and systems management philosophy pioneered in the space field by NASA);
and otherwise paved the way to today's generally far more vibrant and
conducive space-business environment—whether or not involving Russian
space resources, at this point—where entrepreneurs, investors,
regulators, lawmakers, supranational organizations, non-governmental organizations
(NGOs), the media, and other key ecosystem participants are now able to
deal with privately conducted, for-profit space activity more
rationally, practically, and cost-efficiently than ever before. (Wernher von Braun summed up the historical institutional-bureaucratic
cautiousness toward space activity in general by famously quipping, "We
can lick gravity, but sometimes the paperwork is overwhelming.")
In his 2016 Wall Street Journal review of Julian Guthrie's book How to Make a Spaceship: A Band of Renegades, an Epic Race, and the Birth of Private Spaceflight, Gregg Easterbrook
highlighted the seminal importance of these often overlooked
post-Soviet private space efforts in enabling and shaping today's
NewSpace. How to Make a Spaceship centers largely around the efforts of space entrepreneur, Peter Diamandis, and his Ansari X Prize won in 2004 by the SpaceShipOne team led by American aerospace engineer Burt Rutan, and funded by Microsoft co-founder and billionaire Paul Allen (SpaceShipTwo
was then funded by British billionaire and industrialist Sir Richard
Branson and his Virgin Galactic). To set the stage, Guthrie retraces the
private space industry's development path; however, according to
Easterbrook:
Mr. Diamandis wasn't the sole entrepreneur to pursue private space flight [early on]. Ms. Guthrie covers other, peculiar attempts.... Neglected in Ms. Guthrie's account is Sea Launch [archetypal post-Soviet Boeing JV with Russians and others], the first private project to send heavy objects into orbit, including, in 2001, the big satellites Rock and Roll, the initial broadcast towers of XM Radio. Every bit as eccentric as the efforts that How to Make a Spaceship describes, Sea Launch fired large [Russian Zenit] rockets from a ship at the equator—equatorial water is the ideal position for space access—compiling a record of 32 successes, three failures and one satellite functioning but in the wrong orbit.
In
2001, the FAA/AST confirmed that NewSpace pioneer Sea Launch was indeed
"[t]he first privately financed, working launch system and
infrastructure...".
Near the end of the 1990s, favored by strong public policy, and
spurred on by the foundational success of these post-Soviet U.S.-Russian
private space ventures, there was a dramatic increase in companies
engaging in this process, leading to common usage of the phrase "new
space companies." "NewSpace" (most prominently), "entrepreneurial space," and "commercial space" are now the most commonly used terms, though "alt.space" was still seen occasionally as late as 2011.
2000s: Silicon Valley-style entrepreneurial space initiatives
Things changed further in the early 2000s as Elon Musk formed SpaceX
with significantly more private capital while he articulated a strong
and consistent vision of the "colonization of space, beginning with
Mars."
However, one company in a worldwide milieu of government-driven spaceflight activities simply did not cement a movement. This began to change with the increasingly public revelations and pronouncements of Blue Origin after 2014. Even though the company was formed about the same time as SpaceX,
it had maintained a very low profile in its first decade-and-a-half of
existence. By 2016, both of these private companies, with
billion-US-dollar-plus backing by committed investors, were successfully
vertically landing and reusing space launch vehicles. Both companies are building large reusable orbital launch systems
that will utilize currently-under-development rocket engines that are
each at least four years along in development, and are already in use or
under development test on ground test stands, all with a focus on
radically lowering the price of carrying people and cargo to space.
Beginning on November 23, 2015, Blue Origin successfully demonstrated the repeated reuse of a rocket for the first time ever, by completing five suborbital, vertical takeoff and landing (VTOL) flights of the same New Shepard rocket; a feat for which Blue Origin was awarded the prestigious 2016 Robert J. Collier Trophy.
On March 30, 2017, SpaceX successfully relaunched a previously flown orbital-class rocket (Falcon 9) for the first time in history, an achievement many compare in significance to that of the Wright brothers' first flight. Celebrated astrophysicist Neil deGrasse Tyson described the underlying economic importance of SpaceX's otherwise technical milestone:
Any demonstration of rocket reusability is a good thing. [...] When we fly on a Boeing 747 across great distances, we don't throw it away and roll out a new one. Reusability is arguably the most fundamental feature of affordable expensive things.
Echoing deGrasse Tyson's post-flight sentiments, former NASA official (and current engineering dean at the University of Colorado Boulder) Bobby Braun "compared the [Falcon 9] rocket to the first successful commercial airliner, the Boeing 707, which ushered in the jet age".
Industry verticals
While NewSpace is currently a primarily horizontal market phenomenon or force which cuts across or "converges" many traditional, existing space-industry "verticals" (i.e., vertical markets)—including spacecraft, launch vehicles and services, scientific research, etc.—the ultimate promise of NewSpace is that it can become a true general purpose technology (or meta-technology), uniquely enabling the creation of new, emerging, and even once-unimaginable verticals, including:
- Heavy-lift launchers with Falcon Heavy (SpaceX), BFR (SpaceX) or New Glenn (Blue Origin), New Armstrong (Blue Origin)
- Smallsat launchers with Rocket Lab, Vector Launch, Relativity Space, Firefly Aerospace, PLD Space, Virgin Orbit, and LandSpace
- Imagery for Earth and Space, e.g. Planet Labs, Spire Global
- Tourism with space tourism. See the list of private spaceflight companies. Including Space Adventures, Virgin Galactic and Blue Origin
- Telecommunications with various satellite constellations, e.g. SpaceX Starlink, OneWeb and Mynaric
- Real estate with Bigelow Aerospace (B330), Axiom Space (Axiom Space Station)
- In space manufacturing and construction with Made in Space (Archinaut) and Tethers Unlimited (Spiderfab)
- Mining of asteroids and planets with companies like: Planetary Resources (although future unsure) and Shackleton Energy Company
- Energy harnessing
- Funeral services with space burial. Both Elysium Space and Celestis offer mass-market services.
- Scientific research brokerage with NanoRacks
- Education with Enterprise In Space developing an online education program with NewSpace companies
- Arts and culture with JP Aerospace's Exobiotanica project/exhibit
Governmental environment
Regulatory schemes
In the United States, NewSpace firms and activities are primarily regulated by the FAA's Office of Commercial Space Transportation
(generally referred to as FAA/AST). However, given the intersection of
potentially many and varied agency-interests at stake in any NewSpace
venture (e.g., FAA, FCC, NOAA, DOD, NASA, FDA, DOE, DOC, etc.), and the sheer infancy of NewSpace as an industry, it appears a comprehensive and userfriendly U.S. regulatory scheme has yet to be developed and put into place to the general satisfaction of NewSpace players:
Right now there are significant gaps in the U.S. government's regulatory authority and licensing process for newly emerging commercial space ventures [i.e., NewSpace firms and projects]. Processes exist for some ventures, but not for others. [...] In many cases, it's not clear what agency, if any, a commercial firm should go through to get approval. [...] The lack of clear rules, authorities, and process is needlessly driving up risk for these firms. Worse yet, it may lead some of them to move to countries where there is greater regulatory clarity or less oversight.
Laws and regulations
- Space law
- Space Law 101: An Introduction to Space Law (American Bar Association)
- European Centre for Space Law (ECSL)
- NASA Transition Authorization Act of 2017 (S.442)
- TREAT Astronauts Act (H.R.6076)
- Commercial Space Launch Act of 1984
- Commercial Space Launch Amendments Act of 2004
- SPACE Act of 2015
- 35 U.S.C. § 105 (Inventions in outer space)
- Executive Order 12465
- 42 U.S.C. 2465d
International treaties
- United Nations Treaties and Principles on Outer Space
- U.S.-U.S.S.R. Space Agreements (1992 and Subsequent)
Business ecosystem
Active companies
- Alba Orbital
- Altius Space Machines
- ARCA Space Corporation
- Astrobotic Technology
- Axiom Space
- Bigelow Aerospace
- Blue Origin
- Celestial Circuits
- Celestis
- Copenhagen Suborbitals
- Digital Solid State Propulsion
- Earth2Orbit
- ELIGOS
- Elysium Space
- Exos Aerospace
- ExPace
- Final Frontier Design
- Firefly Aerospace
- Galactic Suite Design
- Generation Orbit
- Independence-X Aerospace
- Innovative Space Propulsion Systems
- Interorbital Systems
- JP Aerospace
- Kepler Communications
- LandSpace
- Lasermotive
- LinkSpace
- Made in Space (company)
- Masten Space Systems
- Moon Express
- Mu Space
- Mynaric
- NanoRacks
- NovaWurks
- OneSpace
- Orbex
- Orbital Technologies
- Orbit Communication Systems
- Orion Span
- Planet Labs
- Planetary Resources
- PLD Space
- PTScientists
- Raptor Space Services
- Relativity Space
- Reaction Engines
- Rocket Lab
- Satellogic
- Scaled Composites
- Shackleton Energy Company
- Sierra Nevada
- Sky and Space Global
- Space Adventures
- Spaceflight Industries
- SpaceX
- Spire Global
- Stratolaunch Systems
- The Spaceship Company
- Tethers Unlimited, Inc.
- UP Aerospace
- Vector Launch
- Ventions
- Virgin Galactic
- Virgin Orbit
- Zero 2 Infinity
- Zero Gravity Corporation
- Zero Point Frontiers Corporation
Dormant or defunct companies (e.g., industry pioneers)
- Andrews Space
- Armadillo Aerospace
- Deep Space Industries
- Escape Dynamics
- Firefly Space Systems – ceased operations in 2016; assets purchased by new investors which formed as Firefly Aerospace in 2017.
- Garvey Spacecraft
- Golden Spike Company
- Mars One went bankrupt January 2019
- MirCorp
- OTRAG
- Pioneer Rocketplane
- Rocket Racing League
- Rocketplane Kistler
- Rotary Rocket
- Sea Launch (Boeing JV)
- Skybox Imaging
- SpaceDev
- Space Island Project
- Swiss Space Systems
- XCOR Aerospace
Other organizations
- American Astronautical Society
- American Institute of Aeronautics and Astronautics (AIAA)
- B612 Foundation
- Center for the Advancement of Science in Space
- Commercial Spaceflight Federation
- Inspiration Mars Foundation
- (The) Mars Society
- National Space Society
- The Planetary Society
- ShareSpace Foundation (Buzz Aldrin)
- Space Access Society
- Space Angels Network
- Space Foundation
- Space Frontier Foundation
- Space Studies Institute
- Space Settlement Institute
- Space Tourism Society
- SpaceIL
- TMRO
- U.S. Space & Rocket Center (USSRC)
Governing bodies
- FAA Office of Commercial Space Transportation (FAA/AST)
- National Aeronautics and Space Administration (NASA)
- National Space Council
- Indian Space Research Organization (successor to the Indian National Committee for Space Research)
- European Space Agency
- China National Space Administration
- Russian Federal Space Agency (Roscosmos)
- Japan Aerospace Exploration Agency (JAXA)
- United Nations Office for Outer Space Affairs (UNOOSA)
- Office of Space Commerce (U.S. Dept. of Commerce)
- Center of Excellence for Commercial Space Transportation (COE CST) (FAA)
Academic institutions
- Space Studies Institute (founded by Dr. Gerard K. O'Neill of Princeton University)
- Space Policy Institute (George Washington University; founded by Dr. John M. Logsdon)
- International Space University
- Massachusetts Institute of Technology (MIT Media Lab's Space Exploration Initiative)
- Embry–Riddle Aeronautical University (B.S. in Commercial Space Operations)
- Purdue University (The Neil Armstrong Hall of Engineering Project Buzz Aldrin-Purdue)
- University of Maryland, College Park (Space Systems Lab incl. The Neutral Buoyancy Research Facility)
- University of North Dakota (Dept. of Space Studies)
- American Military University (Online B.S. in Space Studies)
- University of Colorado Colorado Springs (Master of Engineering in Space Operations)
- Webster University (M.S. in Space Systems Operations Management)
- Arizona State University (NewSpace Initiative)
- National Institute of Aerospace
- Students for the Exploration and Development of Space
- Space Camp
- Indian Institute of Space Science and Technology ([2])
- University of Michigan (MEng: Space Engineering Program)
Media and events
- Ansari X Prize
- Beyond the Cradle: Envisioning a New Space Age conference (MIT Media Lab)
- Collier Trophy
- Canadian SmallSat Symposium (Toronto)
- Google Lunar X Prize
- International Space Development Conference (National Space Society)
- Katharine Wright Trophy
- (The) New Space Age Conference (MIT Sloan)
- NewSpace (Official Journal of the COE CST)
- NewSpace Conference (Space Frontier Foundation)
- NewSpace Global
- SmallSat Conference (Logan, UT)
- SmallSat Symposium (Menlo Park, CA)
- Space 2.0
- World Space Week
- Yuri's Night