We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Coming up as a new frontier, space economy is witnessing frequent groundbreaking advancements worldwide. Ambitious projects in the developing space industry attract a varied range of businesses, from semiconductor corporations manufacturing chips in extraterrestrial factories to pharmaceutical firms establishing labs aboard space stations for cell-development investigations.
A new space race has been ignited by this spike, with state actors significantly stepping up their investments in the field. According to a report by McKinsey, the global space economy is estimated to reach a valuation of $1.8 trillion by 2035.
Growing Impact of Space on Global Economy
Maintaining an impressive annual growth rate of 9% and outpacing global GDP expansion, space economy is projected to surge to $1.8 trillion by 2035 from $630 billion in 2023, according to the report. Space-centric technologies such as communication, navigation and Earth observation are anticipated to fuel the sector’s growth.
Although the report predicts the global space economy to hit $1.8 trillion by 2035, an optimistic estimate of $2.3 trillion emerges with enhanced data accessibility and decreased entry costs to space.
Influence Spreading Across Industries
Estimated to witness a rapid expansion by 2035, the impact of space technology has the potential to completely transform the world economy. Enhanced logistics efficiency will benefit the supply chain and transportation, while last-mile delivery in food and beverage should see marked improvements.
Supply chain and transportation, food and beverage, state-sponsored military, retail, consumer and lifestyle and digital communications are the five major industries that are expected to generate 60% of the global space economy by 2035, benefiting as space economy grows.
Additionally, adjacent industries such as agriculture, information technology, insurance and construction are set to profit from the revenue inflow, cost efficiencies and environmental advantages offered by space-enabled technologies.
Helping in Climate Control
As global investments increasingly prioritize climate control, the advancements within space technologies and the broader space economy promise significant benefits.
Already integral to disaster warning and management, space technology's role is expected to expand significantly with improved climate disaster monitoring, resilient communication network access and optimized tracking through satellite positioning data.
The Rise of Space Tourism
The global space tourism market is estimated to witness a CAGR of 44.8% from 2024 to 2030, after being valued at $851.4 million in 2023, according to Grand View Research.
A rising interest among adventure seekers, the enthusiasm of High Net Worth Individuals (HNWIs) for space travel and heightened investment in research and development by both governmental and private entities are the driving forces behind space tourism.
ETFs to Consider
With increasing interest in interstellar exploration and growing capital infusion in the space sector, increasing exposure to funds providing exposure to space economy can be beneficial.
The growing interest in space economy is highlighted by a surge in the number of satellites launched per year. Over the past two decades, satellite launches have surged by 50% annually, accompanied by a remarkable 10-fold reduction in launch costs.
ARK Space Exploration & Innovation ETF employs an active strategy and seeks long-term growth of capital by investing in domestic and foreign equity securities of companies that are engaged in space exploration and innovation. The fund has gathered an asset base of $243.9 million and charges an annual fee of 0.75%.
ARK Space Exploration & Innovation ETF has gained 2.94% over the past three months and 9.60% over the past year.
Spear Alpha ETF employs an active strategy and seeks long-term capital growth by investing in companies that are poised to benefit from breakthrough trends in industrial technology. The fund has gathered an asset base of $71.7 million and charges an annual fee of 0.75%.
Spear Alpha ETF has lost 3.46% over the past three months but has gained 59.42% over the past year.
Procure Space ETF seeks to track the performance of the S-Network Space Index with a basket of 34 securities. The fund has gathered an asset base of $31 million and charges an annual fee of 0.75%.
Procure Space ETF has lost 7.89% over the past three months and 16.47% over the past year.
SPDR S&P Kensho Final Frontiers ETF seeks to track the performance of the S&P Kensho Final Frontiers Index, with a basket of 32 securities. The fund has gathered an asset base of $16.2 million and charges an annual fee of 0.45%.
SPDR S&P Kensho Final Frontiers ETF has gained 3.13% over the past three months and 8.64% over the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
$1.8T Space Boom Expected by 2035: ETFs to Play
Coming up as a new frontier, space economy is witnessing frequent groundbreaking advancements worldwide. Ambitious projects in the developing space industry attract a varied range of businesses, from semiconductor corporations manufacturing chips in extraterrestrial factories to pharmaceutical firms establishing labs aboard space stations for cell-development investigations.
A new space race has been ignited by this spike, with state actors significantly stepping up their investments in the field. According to a report by McKinsey, the global space economy is estimated to reach a valuation of $1.8 trillion by 2035.
Growing Impact of Space on Global Economy
Maintaining an impressive annual growth rate of 9% and outpacing global GDP expansion, space economy is projected to surge to $1.8 trillion by 2035 from $630 billion in 2023, according to the report. Space-centric technologies such as communication, navigation and Earth observation are anticipated to fuel the sector’s growth.
Although the report predicts the global space economy to hit $1.8 trillion by 2035, an optimistic estimate of $2.3 trillion emerges with enhanced data accessibility and decreased entry costs to space.
Influence Spreading Across Industries
Estimated to witness a rapid expansion by 2035, the impact of space technology has the potential to completely transform the world economy. Enhanced logistics efficiency will benefit the supply chain and transportation, while last-mile delivery in food and beverage should see marked improvements.
Supply chain and transportation, food and beverage, state-sponsored military, retail, consumer and lifestyle and digital communications are the five major industries that are expected to generate 60% of the global space economy by 2035, benefiting as space economy grows.
Additionally, adjacent industries such as agriculture, information technology, insurance and construction are set to profit from the revenue inflow, cost efficiencies and environmental advantages offered by space-enabled technologies.
Helping in Climate Control
As global investments increasingly prioritize climate control, the advancements within space technologies and the broader space economy promise significant benefits.
Already integral to disaster warning and management, space technology's role is expected to expand significantly with improved climate disaster monitoring, resilient communication network access and optimized tracking through satellite positioning data.
The Rise of Space Tourism
The global space tourism market is estimated to witness a CAGR of 44.8% from 2024 to 2030, after being valued at $851.4 million in 2023, according to Grand View Research.
A rising interest among adventure seekers, the enthusiasm of High Net Worth Individuals (HNWIs) for space travel and heightened investment in research and development by both governmental and private entities are the driving forces behind space tourism.
ETFs to Consider
With increasing interest in interstellar exploration and growing capital infusion in the space sector, increasing exposure to funds providing exposure to space economy can be beneficial.
The growing interest in space economy is highlighted by a surge in the number of satellites launched per year. Over the past two decades, satellite launches have surged by 50% annually, accompanied by a remarkable 10-fold reduction in launch costs.
ARK Space Exploration & Innovation ETF (ARKX - Free Report)
ARK Space Exploration & Innovation ETF employs an active strategy and seeks long-term growth of capital by investing in domestic and foreign equity securities of companies that are engaged in space exploration and innovation. The fund has gathered an asset base of $243.9 million and charges an annual fee of 0.75%.
ARK Space Exploration & Innovation ETF has gained 2.94% over the past three months and 9.60% over the past year.
Spear Alpha ETF (SPRX - Free Report)
Spear Alpha ETF employs an active strategy and seeks long-term capital growth by investing in companies that are poised to benefit from breakthrough trends in industrial technology. The fund has gathered an asset base of $71.7 million and charges an annual fee of 0.75%.
Spear Alpha ETF has lost 3.46% over the past three months but has gained 59.42% over the past year.
Procure Space ETF (UFO - Free Report)
Procure Space ETF seeks to track the performance of the S-Network Space Index with a basket of 34 securities. The fund has gathered an asset base of $31 million and charges an annual fee of 0.75%.
Procure Space ETF has lost 7.89% over the past three months and 16.47% over the past year.
SPDR S&P Kensho Final Frontiers ETF (ROKT - Free Report)
SPDR S&P Kensho Final Frontiers ETF seeks to track the performance of the S&P Kensho Final Frontiers Index, with a basket of 32 securities. The fund has gathered an asset base of $16.2 million and charges an annual fee of 0.45%.
SPDR S&P Kensho Final Frontiers ETF has gained 3.13% over the past three months and 8.64% over the past year.