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A revolution in space?
By Manfred Hader and Eric Kirstetter
How the low Earth orbit economy can create radical solutions and innovative opportunities for traditional industries
The low Earth orbital zone, positioned between 160 km and 2,000 km above the Earth's surface, represents a strategic gateway for broader space exploration. It is the testing ground for technologies that could soon be deployed on the Moon and beyond. And thanks to recent technological advances – including the development of reusable rockets that slash the cost per kilogram delivered into orbit by 90% – it also unlocks innovation potential in many industries. We examine the real-world possibilities of using the low Earth orbital zone to revolutionize industries on Earth and, in so doing, achieve radical change in our modern economies.

"Traditional industries are increasingly recognizing the potential of the low Earth orbit economy."
Harnessing the potential
Traditional industries are increasingly keen to harness the potential of the low Earth orbit economy for their businesses on Earth. The low Earth orbital zone offers a number of crucial advantages for industries: It offers minimal latency for data transmission, making it perfect for applications requiring fast data exchange and the development of "IoT from space"; industries such as construction and mining can draw on the knowledge gained from in-space assembly for space missions; the weaker gravitational pull of the low Earth orbital zone opens the door to innovations in manufacturing, particularly in semiconductors, materials science and processing technologies; and microgravity can also be used for advancing medical research and the production of pharmaceuticals, for example.
The revolutionary power of the low Earth orbit economy lies in its ability to address major global challenges. As the world struggles with population growth and migration, the low Earth orbit economy can inspire humanity to build a better future. People living in remote areas cannot easily access medical care? Satellite connectivity can enable telemedicine even in the furthest-flung areas. Industries are polluting the Earth? Pollution and climate data can be carefully monitored in real time from the low Earth orbital zone. Conventional energy production is bad for the environment? Clean, space-based solar power can be produced using existing technological principles.
"The low Earth orbit economy is spawning new opportunities across a diverse range of industries."
Use cases – four key domains
We identify four main domains where applications arise exploiting the potential of the low Earth orbit economy. The first is in-space infrastructure, from building spacecraft and space habitats to the construction of in-orbit logistical hubs to support space manufacturing – enabling research and exploration in space while ensuring sustainable space operations. Second, we have in-space services such as experimentation and processing for microgravity materials with unique properties for industrial applications. The third domain is in-space manufacturing, where use cases range from the production of high-purity fiber optics to the development of superior pharmaceuticals that cannot be produced on Earth. Finally, we have technology spin-offs such as advanced life-support systems, medical robots and space-grade materials for use in Earth industries.
To unlock the full potential of the low Earth orbit economy, however, a number of challenges need to be mastered. Public decision-makers need a bold vision, forming the basis for strong governmental support. Public funding is required for the initial development of cutting-edge technologies, such as heavy-lift reusable launch vehicles and in-orbit manufacturing capabilities. International regulations are needed for space traffic management and debris mitigation, preventing congestion in the low Earth orbital zone. Public-private partnerships and innovative financial instruments are essential for funding the large-scale space projects that will form the foundation of a sustainable low Earth orbit economy. Underpinning all these requirements, it will be necessary to raise awareness among stakeholders, especially those from outside the space industry.
"The next industrial revolution will not be on Earth; it will be in orbit."
A roadmap for success
What should stakeholders be doing now to ensure they are at the forefront of innovation, ready for the opportunities and challenges that lie ahead? The tasks are many and varied; here is just a selection. Public-sector actors such as space agencies and regulators should develop policies supporting the expansion of commercial space activities. Companies in the space industry need to start investing in R&D, at the same time as developing new markets for space-based products and services. The non-space industry – in other words, terrestrial-focused businesses – would be well advised to begin exploring the potential of expanding into the space sector, potentially in partnership with firms already active here. Funding institutions might consider setting up dedicated funds providing capital for early-stage space ventures, alongside fostering partnerships between public and private-sector players and educating investors about the potential of the low Earth orbit economy. Finally, we encourage academic institutions to work closely with industry to develop new technology, while continuing in their task of training the next generation of skilled workers in space-related fields.
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