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In-space manufacturing: An out-of-this-world opportunity
With steady investment and the possibility of making a real difference in sustainable manufacturing, space tech startups are right to aim for the stars; because they might just get there.
In-space technologies – the design, development, manufacture and operation of devices and systems in space – present a unique opportunity for investors and founders alike to explore new horizons. With steady investment and the possibility of making a real difference in sustainable manufacturing, space tech startups are right to aim for the stars; because they might just get there.
Key takeaways
- The space economy could reach $1.8T by 20351
- Innovators believe in-space manufacturing can drastically reduce carbon emissions
- Alongside regulators, investors will play a crucial role in forging the future of the industry
Space has always been the final frontier, but it’s fast-becoming the site of the next industrial revolution.
This shift is the result of Space Technology, or “Space Tech”: the design, development, manufacture, and operation of devices and systems in space, or for use in space. It’s literally out-of-this world innovation. But why go boldly to build things in outer space?
The answer? Sustainability, and scale.
Recent research suggests that manufacturing materials for high-value infrastructure (like EV charging stations or cloud computing data centres) in space could reduce CO2 emissions by 75%2.
That’s an important mission, and, despite longer development timelines and the technical challenges that come with exploring new fields, it’s attracting investors both globally and locally. The first half of 2024 saw over $3B of VC investment in Europe – a figure that’s set to surpass the record figures of 20213.
VC investment into space tech, 2010 – 2024YTD
These are promising indicators that could see the global space economy reach a staggering $1.8T by 2035, and up to £3T by 20504. But what’s driving this astronomical growth?
The key influence here is the falling cost to launch, which continues to unlock new models and opportunities. These range from advances in spaceflight and transportation tech, as well as satellites, navigation, earth observation and in-space research – fundamental platforms for everything from satellite connectivity and mobile navigation services to AI and machine learning5
I spoke to Joshua Western, CEO and Co-founder of UK-based in-space manufacturer Space Forge, to find out more about this fascinating opportunity.
Tell us about your journey and what inspired you to launch Space Forge?
We founded Space Forge in 2018 to save our home planet.
We recognised the huge climate potential of in-space manufacturing – but also the need for reliable return from space to make this work. That’s why we’re developing the world’s first fully returnable, relaunchable satellite platform - the ForgeStar™ - to unlock the benefits of manufacturing and experimentation at scale in space.
What has been the Space Forge most significant milestone?
Probably the build and launch of ForgeStar-0. We designed, built, and shipped a satellite to the launchpad in a record time of only 5 months.
Although that launch wasn’t successful, the whole team rallied to now have ForgeStar-1 – which is 10 times bigger than ForgeStar-0 - ready in the same year. I think that’s testament to the type of team we’ve built.
How do you drive positive change?
Space Forge exists to make space work for humanity by producing next generation materials off planet and returning them to Earth.
Research suggests that manufacturing materials for high-value infrastructure – everything from EV charging stations to cloud computing data centres – could reduce CO2 emissions by 75%. That’s why we focus on producing materials and products which offer game-changing levels of performance and efficiency in power-hungry infrastructure and systems.
Our goal for Space Forge is for every kilogram of CO2 we create, to prevent another 20,000 from ever being made – driving a step change in humanity through a clean industrial revolution and reducing the environmental impact of production on earth as we unlock new value and innovation.
By developing a fully returnable and reusable satellite platform, we aim to make it possible to not only take manufacturing off world, but also to re-enter the atmosphere to return payloads, a key part of the manufacturing model of space as a service.
What are the main barriers faced by the space tech industry, and how can these be overcome?
To support the deep tech and space tech industries, the investment community must embrace risk and exhibit patience, understanding the longer development timelines and potential for transformative breakthroughs.
Strategic partnerships should be formed to leverage expertise and resources, while advocating for clear and progressive regulations to foster innovation. Lastly, investors should educate themselves about the unique challenges and opportunities within these sectors, enabling informed decisions and effective support for startups.
At the same time, sustained government support is essential. The regulation and policy for what we do simply does not exist. There is an opportunity to shape the regulation and build an incredible capability at the same time.
How do you see in-space manufacturing evolving in the next 5-10 years?
There is huge market potential for in-space manufacturing. Space Forge has identified multibillion markets for several material classes - but demand is not currently being met as there is no dedicated platform, no soft return, and a heavy reliance on the International Space Station.
That’s why we came up with a dedicated solution, the ForgeStar. We will have our second mission this year with the ForgeStar-1. Then we’ll expand our fleet of satellites to meet customer demand at the much more capable scale of ForgeStar-2.
As launch capability continues to increase globally and the small satellite market continues to grow, we believe that we will be able to offer a unique service to customers who want to harness the space environment.
Key to this industry succeeding is ensuring that the products made in space are useful on Earth. Our focus on compound semiconductors is where our experienced team found a material that could be massively improved within space, for which there was growing demand for on Earth.
My hope is that in the next 10 years, using something that was made in space will be considered the norm.
Final takeaway: A sector set to skyrocket
The global space economy is booming, and the UK has a pivotal part to play as we voyage into the future.
Having attracted more private investment in space than any country outside the US since 20155, the UK will be a significant contributor in the future success of this rapidly growing sector, and start-ups such as Space Forge are paving the way to new frontiers!
Beyond in-space manufacturing, advancements in space-based solar power, commercial space stations, space logistics, space exploration and tourism, microgravity engineering, and moon and asteroid mining present unique opportunities to create previously unimagined businesses.
However, creating anything first-of-its-kind means navigating new challenges; forging a path and literally building the future. For space tech to flourish and unlock the possible economical, environmental and societal impact on offer, regulators, investors and financiers need to find an equally novel way of working together, supporting founders to push the boundaries in order to exploit the full potential of new frontiers!
If they can, the sky may no longer be the limit.
