Stake logo


The Final Frontier For Profit

Before the last decade, the commercialisation of space seemed like science fiction. But plummeting costs have created new opportunities. Let’s launch into what has some investors thinking, ‘Houston, we have a profit’.

NASASince humankind first moved into orbit, economic gains have followed. Cameras small enough to fit in a mobile phone. Scratch resistant lenses. Wireless headphones. These are just a few pieces of technology developed by NASA and later commercialised by the private sector.

But over the last decade we’ve entered a new Space Age: a shift from government-driven innovation to private. Consequently, the avenues of economic growth have expanded from indirect gains through innovation to direct revenue generation. No wonder the global space economy has been valued at US$469b (2021), and Citigroup ($C) forecasts total annual revenue to reach US$1t by 2040.

Small steps to giant leaps

As private space expansion advances, the stepping stone has been data and services from private satellites. Two listed examples exploring that: Kleos Space (ASX: KSS) and BlackSky Technology ($BKSY).

Kleos Space is a Luxembourg-based, ASX-listed nanosatellite developer, manager and data provider (see Under the Spotlight AUS: Kleos Space SA (KSS) for more). Kleos started generating revenue in 2H22 by selling access to the data produced by the three clusters of four nanosatellites it has in orbit.

Meanwhile, BlackSky Technology combines satellite imagery with an AI-enabled analytics platform. Customers can monitor and analyse a number of ‘strategic sites’ via the company’s archive and real-time feeds. This service generated BlackSky US$34m in revenue during 2021 – up 61% year-on-year.

The next stage of space commercialisation is probably what you first thought of: tourism. Big money, big egos and lots of media attention there. One of the key players, Virgin Galactic ($SPCE), is expected to launch this service in Q2 2023.

Without even getting into the US$100t potential behind asteroid mining or, one day, actual interplanetary colonisation, it’s fair to say that space really is the final frontier for profit.

Want more?

You know what to do

Insights, trends and company deep dives delivered straight to your inbox.

Stake logo
Over 7,000 5-star reviews
App Store logoGoogle Play logo

Subscribe to our free newsletters

By subscribing, you agree to our Privacy Policy.

Stakeshop Pty Ltd, trading as Stake, ACN 610105505, is an authorised representative (Authorised Representative No. 1241398) of Sanlam Private Wealth Pty Ltd (Australian Financial Services Licence No. 337927) ('Sanlam') and an authorised representative (Authorised Representative No. 1241398) of Airwallex Pty Ltd (Australian Financial Services Licence No. 487221) ('Airwallex'). Stake is not authorised by Airwallex under Airwallex’s AFSL to arrange for clients to be issued with securities as Airwallex is not authorised under its AFSL for this purpose. Stake is not authorised by Sanlam under Sanlam’s AFSL to arrange for clients to be issued with a non-cash payment facility as Sanlam is not authorised under its AFSL for this purpose. Stake SMSF Pty Ltd (‘Stake Super’) is not licensed to provide financial product advice under the Corporations Act. This specifically applies to any financial products which are established if you instruct Stake Super to set up a self managed super fund (‘SMSF’). When you sign up to Stake Super, you are contracting with Stake SMSF Pty Ltd who will assist in the establishment of a SMSF under a ‘no advice model’. You will also be referred to Stakeshop Pty Ltd to enable your trading account and bank account to be set up in order to use the Stake Website and/or App. Stakeshop Pty Ltd will also run marketing and promotions to you under. For more information about SMSFs, see our SMSF Risks page.The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake and Stake Super, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice given by Stake is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Financial Services GuideTerms & ConditionsPrivacy Policy and Disclaimers  before deciding to invest on or use Stake or Stake Super. By using our website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake and Stake Super are registered trademarks in Australia.

Copyright © 2024 Stake. All rights reserved.