Where the Australian Space Sector is heading in the next decade ?

I’ve enjoyed reading recent reports from the McKinsey Global Institute and the Space Foundation in the U.S., and the data they present, which suggests a very bright future for the global space sector. According to the Space Foundation, the global space economy in 2023 was valued at US$570 billion, reflecting a 7.4% increase from 2022. Of particular interest:

• Commercial space revenues made up 78% of this economy in 2023, growing by 5.4% compared to the previous year.
• Government spending on space programs worldwide grew by 11% from 2022 to reach US$125 billion in 2023. Nine of the top-spending countries increased their budgets by double digits.
• Since 2020, the number of space agencies has risen from 40 to over 74 today.

The McKinsey Global Institute projects that the space economy will continue to grow significantly over the next decade. By 2040, the industry’s revenue is estimated to reach between US$960 billion and US$1.6 trillion, with a compound annual growth rate of 7-10%. This expansion will primarily rely on space-based and space-enabled technologies, including communications, positioning, navigation, timing, and Earth observation. Key growth factors include:

• Increasing demand for commercial services and end-user equipment
• Lower costs of satellite production
  Introduction of reusable heavy-lift launch vehicles
• Increased government investment.

McKinsey also highlights that government-supported civil space initiatives are expected to grow from US$59 billion in 2023 to between US$180 billion and US$270 billion by 2040 (7-9% annual growth). Governments worldwide are shaping the space sector by boosting investments and strengthening partnerships with private companies.

This leads me to wonder where Australia stands in this landscape of opportunity and how it plans to tackle the challenges that come with it.