Table Of ContentLouis Brennan and Alessandra Vecchi
The next
frontier of
international
competition
The business of space
The business of
space
The next frontier of international
competition
Louis Brennan
Associate Professor and Research Associate, Institute for International
Integration Studies, Trinity College, Dublin, Ireland
&
Alessandra Vecchi
Postdoctoral Researcher, Institute for International Integration Studies,
Trinity College, Dublin, Ireland
Palgrave
macmillan
© Louis Brennan & Alessandra Vecchi 2011
Softcover reprint of the hardcover 1st edition 2011978–0–230–23173–3
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First published 2011 by
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ISBN 978-1-349-31217-7 ISBN 978-0-230-30592-2 (eBook)
DOI 10.1057/9780230305922
A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Brennan, Louis.
The business of space : the next frontier of international competition / Louis Brennan
and Alessandra Vecchi.
p. cm.
Includes index.
Summary: “This book looks at the space industry from a business perspective, with a focus
on international competition. The space industry traces its origins to the middle of last
century as a government/military domain and the author now looks at the ongoing
evolution of space exploration and travel, and projects the future of the industry” —
Provided by publisher.
1. A erospace industries. 2. Competition, International. I. Vecchi, Alessandra. II. Title.
HD9711.5.A2.B74 2011
338.4'76294—dc22 2011007009
10 9 8 7 6 5 4 3 2 1
20 19 18 17 16 15 14 13 12 11
C
ONTENTS
List of Figures and Tables vii
Preface ix
Acknowledgments x
Chapter 1 Introduction and background: the global 1
space industry
The conceptualization of the business of space: 1
a globalization perspective
De-territorialization and re-territorialization 5
Origins of space 8
Globalization and the pivotal role of the space 22
industry
Chapter 2 Industry analysis 34
Introduction 34
Industry defi nition 35
Current state of the space sector 38
Chapter 3 The main country players 74
Introduction 74
USA 82
Russia 88
Europe 91
China 94
Korea 98
Brazil 101
India 104
Iran 108
Saudi Arabia 111
v
vi Contents
Israel 112
Pakistan 116
Japan 117
Chapter 4 The future 125
Scenarios for the future of the space sector 125
Forecasts for space applications 133
Comparison with other industry sectors: 139
from aviation to space tourism
Forces affecting the industry 148
Key strategic issues facing the industry: 152
PESTEL analysis
Further potential: SWOT analysis 156
International business perspective 157
Bibliography 162
Index 168
L F T
IST OF IGURES AND ABLES
Figures
1.1 D e-territorialization and re-territorialization 8
in space
1.2 The evolution of the space industry 12
1.3 T erritorialization, de-territorialization and 17
re-territorialization
2.1 Overview of the space economy 36
2.2 The space industry and its core components 37
2.3 R &D expenditure in the space industry for 38
OECD countries, 2002
2.4 C ountries with operational satellites in orbit, 40
as of December 2006 (estimates)
2.5 T otal commercial and non-commercial launch 42
events, 1998–2006
2.6 Total launch events by country, 2000–6 44
2.7 Commercial launch events, by country, 1996–2000 45
2.8 Commercial launch events, by country, 2001–6 45
2.9 World satellite manufacturing revenues, 2000–6 46
2.10 W orld satellite manufacturing revenues, 46
by sector, 2000–6
2.11 W orld satellite manufacturing revenues, 47
by sector, 2000–6, percentages
2.12 Worldwide launch revenues, 2000–6 48
2.13 US government total space budget, 1990–2007 54
2.14 M ilitary expenditure as a percentage of the 55
US space budget, 1990–2007
2.15 W orld satellite industry revenues for 59
services and others
2.16 World satellite service revenues 60
2.17 T he three value chains in commercial 62
satellite applications, 2005
2.18 W orld government and military commercial 63
satellite market total, 2003–12
vii
viii List of fi gures and tables
2.19 E stimated global expenditure for remote 64
sensing products, by application, 2006–12
3.1 C ontribution of the space industry to the 83
US economy, 1997–2004
3.2 U S space manufacturing industry employment 84
and value added, 1997–2004
3.3 Commercial space in presidential space policy 85
3.4 A nnual number of successful space 88
launches worldwide
3.5 R ocket test ranges and major rocket production 89
facilities, Russia, Ukraine and Kazakhstan
3.6 C lassifi cation of space systems by missions 91
performed
Tables
1.1 Friedman’s argument 5
1.2 C haracterizing globalization and the business 33
of space
2.1 S elected active and upcoming robotic 56
exploratory probes, as of December 2006
2.2 S elected human space-fl ight statistics, 58
as of December 2006
3.1 Cross-country SWOT analysis 77
4.1 S ummary of expected demand for 134
telecommunications
4.2 G rowth of potential demand for space-based 134
information services
4.3 S ummary of expected demand for Earth 135
observation
4.4 P otential demand for space-based Earth 136
observation services
4.5 Summary of expected demand for space tourism 137
4.6 Ranking of feasibility of promising applications 138
P
REFACE
This book considers the business of space from the perspective of
globalization. The space industry traces its origins to the middle
of the twentieth century as an exclusively government/military
domain involving the United States and the former Soviet
Union. It has evolved to one that is increasingly commerciali zed
and internationalized, encompassing a host of activities and
countries. This book describes this ongoing evolution, assesses
the major segments of the industry and evaluates the industry
from a business perspective.
As the space industry is increasingly evolving from one dominated
by governments and their military establishments to one that is
undergoing rapid commercialization across a wide number of
areas, there is a need for a business perspective on the industry.
This book offers insights on this changing landscape that have
relevance for the industry players, as well as policy-makers and
decision-makers. Awareness of the industry is critical if public
policy is to support it.
As the impact of climate change makes terrestrial survival for
the human species increasingly problematic, the imperative to
develop the means to evacuate planet Earth and sustain extra-
terrestrial human existence becomes critical. Since the space
industry is crucial in this respect, this book will provide a timely
exposition around the emerging state of the industry.
The book comprises four chapters. Chapter 1 presents a con-
ceptualization of the business of space from a globalization
perspective. Chapter 2 considers the current state of the sector,
while Chapter 3 deals with the main country players. The fouth
and fi nal chapter addresses the future by assessing the future
potential of space applications, as well as the forces and key
strategic issues faced by the industry.
ix
A
CKNOWLEDGMENTS
We express our appreciation to our International Business
students for their invaluable assistance in sourcing pertinent
data. We would also like to acknowledge the assistance of
Ruslan Rakhmatullin in the production of the illustrative mate-
rials. Finally, we are greatly indebted to Palgrave Macmillan,
in particular Eleanor Davey Corrigan and Keith Povey (with
Elaine Towns) for their sustained and sustaining support and
expert guidance in the writing of this book.
LOUIS BRENNAN
ALESSANDRA VECCHI
The authors and publishers are grateful to the following for
permission to reproduce copyright material: The Organisation
for Economic Co-operation and Development for tables from
OECD publications Space 2020: Exploring the Future of Space
Applications (http:/dx.doi.org/10.1787/9789264020344-en) and
The Space Economy at a Glance 2007 (http:/dx.doi.org/10.178
7/9789264040847-en); Taylor & Francis Publishers for fi gures
from two articles by Maxim V. Tarasenko. Every effort has been
made to contact all copyright-holders, but if any have been
inadvertently overlooked the publishers will be pleased to make
the necessary arrangement at the earliest opportunity.
x
