While space missions were once the domain of government agencies, the private sector has taken over the aerospace industry. Its rise has signaled the beginning of a commercial space age where privately owned corporations take on more risks and stimulate technological and scientific advancements.
From space excursions to building multi-modular orbiting stations, the private sector backs projects that were inconceivable a few decades ago.
But who are the major players participating in this new space race? What have they got to offer, and how have they contributed to commercializing space?
Keep reading to find out.
The X Prize
Encouraging innovation and technological breakthroughs sometimes requires setting challenges and rewarding milestones with a significant financial incentive.
The Ansari X Prize offered a $10 million prize to the first private company to launch a reusable spacecraft twice in two weeks. Other conditions of the competition stated the spacecraft had to be reusable and crewed.
The award was established in May 1996, but the competition lasted until 2004 when the experimental SpaceShipOne completed the two required flights. The $10 million went to the victorious Team One project from Scaled Composites, an organization that would help Virgin Galactic build its SpaceShipTwo spaceplane.
Although the reward sum sounds impressive, the competition had 27 participants, and their efforts to beat the deadline garnered investor interest. As a result, roughly $100 million went into developing new technologies to make space travel more secure and accessible.
Since the X Prize, similar awards have sprung up, promising to reward those whose solutions bring humankind closer to space. Moon exploration has been the primary goal of both the government and the private sector.
Google’s Lunar X prize promised $30 million to a research team that could achieve a soft landing and place a rover on the Moon. Although Google pushed back the deadline twice, hoping a winner would soon emerge, the task appears to have been too challenging. Although the grand prize went unclaimed, teams that achieved major research milestones received approximately $6 million.
As the space industry continues to evolve, the incentives grow. For example, NASA has established the Centennial Challenges to endorse US-based teams whose technological achievements could accelerate space exploration.
In addition, it has recently announced the second phase of its high-stakes Moon lander competition. This is a second chance for corporations that previously lost out to SpaceX to secure a collaboration with the space agency. SpaceX will build a spacecraft that will carry NASA astronauts to the Moon as early as 2025.
The Ultrawealthy
Although rocket companies are developing hardware and technology to cut flight costs, these luxurious joyrides are currently only available to the ultrawealthy. It’s a niche market, but flight providers are capitalizing on the increased demand.
Until January 2012, seven private citizens traveled to space aboard commercial flights. In 2022, public interest in space cruises has increased, and many would-be astronauts with deep pockets are eager to get off the ground.
Popular space flight providers include Space Perspective, Blue Origin, Virgin Galactic, Roscosmos, and SpaceX.
While Virgin Galactic’s first ticket sold at around $250,000, the company has upped the price following the success of founder Richard Branson’s flight in 2021. As a result, customers now have to shell out a whopping $450,000, and approximately 700 space tourists are on the waiting list. The suborbital trip will last for around 90 minutes and take passengers to an altitude of 50 kilometers.
Jeff Bezos’s Blue Origin is also in the suborbital tourism arena, but the company’s offerings have a steep price tag. The 12-minute flight will carry passengers to the Karman line, where the Earth’s atmosphere ends and outer space begins.
Blue Origin hasn’t disclosed how many clients have signed up to head into space but has reportedly collected $100 million from paying customers. Likely, boarding the company’s New Shepard rocket costs millions of dollars. According to actor Tom Hanks, Bezos offered him a seat on the spacecraft for $28 million.
Orbital trips have an even heftier price. For example, a multi-day stay aboard SpaceX’s Dragon spacecraft costs $55 million, while Roscosmos’s personalized trip to the International Space Station is a $50 to $60 million getaway.
Although space tourism caters to multimillionaires and billionaires, it has remained a thriving business over the last several years. The private sector will continue to flourish as long as the ultrawealthy are willing to shell out large sums to view a glimpse of space. In the future, flight providers may roll out more affordable offerings and broaden their customer pool.
Space Agencies and Governments
Although the space race of the 21st century has seen the rise of private companies, governments have found ways to adapt to the changing industry landscape.
Most countries lack the financial resources to reach technological milestones quickly, slowing their space missions. As a result, they have resorted to contracting private corporations that meet their requirements.
For instance, Elon Musk’s Tesla and SpaceX have accumulated over $7 billion in loans, tax breaks, contracts, and subsidies.
Additionally, NASA has deep connections to the commercial space business, granting nearly $300 million to private satellite providers in 2022. The grant is part of NASA’s Communications Services Project. It should encourage private companies to refine their services so the agency can use them for future missions. As NASA focuses on space exploration, it relies on commercial partnerships to support its other services.
The companies NASA has stimulated with the grant are SpaceX, Telesat U.S. Services, SES Government Solutions, Inmarsat Government Inc., Viasat Incorporated, and Kuiper Government Solutions.
This is a familiar modus operandi for NASA. It has previously organized a similar program to incentivize commercial corporations to develop crew and cargo transportation solutions for the International Space Station. Ultimately, the agency contracted Orbital ATK and SpaceX for cargo transportation services and chose Boeing for crew transportation.
While space is no longer the exclusive domain of the government, space agencies worldwide are funding the private sector. They hope new developments will decrease space exploration costs and lead to more frequent missions. In addition, as more corporations improve their track records, we might see more lucrative government endorsements in the coming years.
Axiom Space
Another name making waves in the commercial space travel market is Axiom Space.
In 2020, the company signed a $140 million deal with NASA to manufacture a habitable space module. The space agency plans to secure the module to the International Space Station. Axiom’s solution was the only accepted proposal, replacing the agency’s previous contractor, Bigelow Aerospace, which halted operations in 2020.
NASA plans to retire the International Space Station by 2031, and Axiom will focus on creating its own Axiom Station. The company will disconnect the modules from the retired station, and the spacecraft will continue to orbit as the Axiom Space Station.
The contractor intends to attach the first module by 2024 and offers ten-day commercial trips to the space station. In 2022, a SpaceX rocket took four Axiom customers into orbit, and the all-civilian crew spent more than a week aboard the station.
Axiom is considering attaching two more modules to the initial spacecraft and opening them to the public.
Before embarking on a mission with Axiom, commercial astronauts will spend up to 15 weeks training. The ticket price is rumored to be around $55 million. The hefty price covers training, launch costs, hardware production, mission preparations, medical support, safety precautions, and more. Depending on the mission’s goal, it could last longer than the proposed 10 days.
Additionally, Axiom is working on another innovative project. Space Entertainment Enterprise (SEE) has commissioned the company to construct an inflatable module to house a production studio and sports arena. SEE will use the module to produce an unnamed Tom Cruise space project. If successful in designing this unique space studio, Axiom could bring humanity closer to living and working in space.
Blue Origin
Jeff Bezos’s Blue Origin is another corporation making spaceflight dreams a reality.
The company has operated in silence for years, and industry insiders wondered when it would complete its first mission. Finally, the day came, and in July 2022, the New Shepard rocket launched a capsule into space.
Aboard the capsule were Bezos, his brother, and two space tourists. The spacecraft reached a top altitude of 65 miles, crossing the Karman line, with the passengers experiencing approximately three minutes of weightless time. It then slowly returned to Earth using parachutes. Finally, the rocket fell to Earth and landed vertically so the company could reuse it for future missions.
The opportunity to fly with Blue Origin boasts a hefty price tag, although the exact cost remains a mystery. However, the company claims it has a list of customers ready to see what lies beyond the Karman line.
While Blue Origin and its founder are quiet about upcoming ventures, it seems that orbital travel is the next step. The company is working on a lunar lander and the New Glenn rocket that could take passengers into orbit.
But Bezos’s end goals are much more ambitious. He’s expressed his desire for Blue Origin to help preserve humankind by allowing millions of people to live and work on orbiting worlds.
Although it took nearly two decades for Blue Origin’s first crewed flight, the company seems to follow NASA’s approach from the beginning of the space age. First comes suborbital travel. Next, head into orbit and devise more complex endeavors, like constructing modules or space stations.
Blue Origin has postponed launching the New Glenn rocket four times, and the latest launch date is sometime in 2023. However, if the flight goes to plan, the company will secure its place as one of the leaders in the commercial space market.
Boeing, Lockheed Martin, and United Launch Alliance
Few postwar corporations have been as successful as Lockheed Martin. It boasts a rich legacy, and its Titan rockets served NASA for all major missions in the 20th century. In addition, Lockheed Martin’s boosters were involved in 368 launches, propelling the Viking Mars landers and the Voyager probes deep into space. But its prolific history isn’t what’s helped Lockheed Martin stay relevant for decades. Instead, it has thrived due to its adaptability. For example, as the private sector took the lead in the space race, the corporation joined forces with Boeing, another old guard member.
In 2006, the two formed the United Launch Alliance (ULA), a joint venture whose clients include NASA and the Department of Defense. It works closely with government agencies and has delivered over 100 satellites into space, gathering valuable data for military, weather forecasting, and navigation purposes. The ULA has a stellar success record, and NASA has entrusted it with building the Orion spacecraft.
Although initially designed for the now-canceled Constellation program, the Orion has been upgraded and transferred to the Artemis project. The first test flight should take place in the second half of 2022, and the Orion should spend at least six days orbiting the Moon. If the Orion rises to the occasion, NASA could soon green-light crewed Moon missions. Tentative estimates suggest that the Orion could take U.S. astronauts into lunar orbit as early as 2025.
The ULA exemplifies the value of cooperation in aerospace. Boeing and Lockheed Martin have stood the test of time, proving they can hold their own against the NewSpace companies like Blue Origin and SpaceX. Nevertheless, their accomplishments now come from the NASA partnership. The question is whether the ULA will eventually branch out and plan independent space missions.
Sierra Nevada Space Systems
Sierra Nevada Corporation has been in the aerospace industry for nearly 60 years, establishing itself as a reliable and respected contractor. Its space projects generate roughly $400 million annually, potentially increasing to $4 billion by 2030.
Sierra Nevada’s entry into the space race dates back to 2008. Its acquisition of SpaceDev and MicroSat System allowed it to design the Dream Chaser. NASA intends to use the spacecraft to resupply the International Space Station, with the maiden flight scheduled for 2023. The commercial spaceplane lands smoothly and can accommodate over 12,000 pounds of equipment and supplies.
Described as a reusable and low-cost vehicle, it will travel to the space station at least seven times. Moreover, it’s compatible with multiple runway types and launch vehicles, making it a flexible transportation spacecraft.
Realizing the growing demand for space access, Sierra Nevada rebranded its aerospace division into its Sierra Space subsidiary. Along with designing the Dream Chaser family of spacecraft, the subsidiary is working on developing space real estate. It has partnered with Bezos’s Blue Origin to build the Orbital Reef space station. It should become operational by 2030 and serve commercial purposes, including tourism.
NASA supports the Orbital Reef project, as it will allow the agency to conduct space research after retiring the International Space Station. Furthermore, this collaboration could commercialize the low Earth orbit and broaden the space tourism market.
Many countries, like the United Arab Emirates, could be interested in sending crews to the station to bolster their space presence. Orbital Reef also helps the U.S. keep up with China, whose multi-modular Tiangong space station has already welcomed two rotating crews.
Space Exploration Technologies Corp. (SpaceX)
SpaceX rose to prominence in 2008, becoming the first private corporation to launch a rocket into orbit. Later that year, it signed a $1 billion contract with NASA to service the International Space Station.
Since then, SpaceX has been on a winning streak. Its Falcon 9 rockets have a 98.8% mission success rate, and the company has completed five flights with NASA astronauts. As of 2022, NASA plans on purchasing five more crewed flights.
But what makes SpaceX intriguing is its determination to make space exploration more accessible. Unlike suborbital trips, SpaceX’s three-day orbital package allows passengers to orbit around the Earth, reenter the atmosphere, and land in the Atlantic Ocean.
A Falcon 9 rocket carried the first all-civilian crew into orbit, going down in history as the only mission without professional astronauts onboard. It highlighted how many doors the private sector has opened, announcing an age when private citizens can access the cosmos. Mission commander and entrepreneur Jared Isaacman funded the trip, and other space tourists can secure an orbital joyride for a hefty $55 million per seat.
But for SpaceX founder Elon Musk, commercial space travel is only one step toward achieving his ultimate goal, the colonization of Mars. The company has developed the Starship launch vehicle capable of taking cargo and passengers beyond Earth.
The Starship spacecraft should be ready for its first orbital mission by July 2022. Moreover, it could be the key to transporting the first human settlers to the red planet. The permanent city would begin as several small bases, gradually evolving into a self-sustaining city.
Bold stakes have paid for SpaceX, and many eagerly await the Starship rocket’s maiden flight. If successful, it could prove SpaceX’s loftier projects are feasible, generating more interest and funding for creating a spacefaring civilization.
Virgin Galactic
Founded by entrepreneur Richard Branson, Virgin Galactic completed its first commercial trip in 2021, after years of anticipation. Branson was a passenger, displaying the founder’s confidence in his crew and technology.
Virgin Galactic stands out among its competitors because of its unique crewed spaceplane. Unlike traditional rockets, the company launches the SpaceShipTwo spaceplane from midair.
It’s attached to a mothership named WhiteKnightTwo, which ascends to approximately 40,000 feet before dropping the rocket plane. SpaceShipTwo then activates its rocket engine and heads for the edge of the Earth’s atmosphere. It flies at a steep incline, backflips, and lands safely on a traditional runway.
Burt Rutan, the engineer behind the X Prize-winning SpaceShipOne, also helped design Virgin Galactic’s spacecraft.
However, developing SpaceShipTwo has been challenging, with numerous pushbacks due to accidents.
An explosion took the lives of three employees ahead of a motor test in 2007, while a spaceplane prototype broke down during its ascent in 2014. The pilot managed to release himself from the seat and was safely brought to the ground by parachutes. Unfortunately, Virgin Galactic found the copilot strapped to the seat when examining the crash site.
Although these roadblocks might have discouraged other providers, the company stayed its course, implementing safety upgrades for years. As a result, the test flights in 2018 and 2019 surpassed the 50-mile mark. In 2021, Virgin Galactic received a full commercial license from the Federal Aviation Administration after the third successful test flight.
The company’s 90-minute flight opens new doors for suborbital research. Scientists could take their experiments into microgravity and make groundbreaking discoveries more quickly.
Virgin Galactic plans to organize three suborbital rides per year. While its travels have only extended to the edge of space, time will tell whether it will build spacecraft for orbital tourism.
Voyager Space Holdings
Voyager Space Holdings takes pride in being the first aerospace holding company. This financial organization currently has several subsidiaries. It controls their policies and makes management decisions, allowing the divisions to focus on developing cutting-edge aerospace solutions. Voyager Space’s acquisitions include X.O. Markets, Pioneer Astronautics, Altius Space Machines, Space Micro, and The Launch Company.
Although the company was established in 2019, its aggressive strategy could catapult it to the top of the private sector.
It’s an exciting business model that could accelerate space exploration progress. Each subsidiary specializes in a different area of space solutions or services. Pioneers Astronautics aims to find ways to support life in space, while Altius Space Machines is a robotics startup focusing on interface development and satellite servicing.
Space Micro builds technological components that bolster satellite subsystems and makes them more reliable. It’s known for building single-board satellite computers but offers other radiation-hardened products, like flash memory, radio transponders, and more.
Voyager Space Holding has secured a majority stake in these ventures and wants to use their breakthroughs to unlock new space capabilities.
Perhaps the company’s most promising acquisition is X.O. Markets, the parent company of Nanoracks, which has participated in over 1,000 International Space Station projects. Most notably, it has installed a commercial airlock on the station.
The Nanoracks Outpost program could be vital for future deep space exploration missions. The program will collect the discarded upper stages of rockets and other space debris, using them to construct commercial space stations. Additionally, Nanoracks has partnered with Lockheed Martin to launch the free-flying StarLab station by 2027. StarLab will be able to house up to four visitors, serving both research and tourism purposes.
Voyager funds thriving ventures it believes could transform the commercial space sector. As Nanoracks is developing a sustainable method for repurposing space waste, many are wondering which corporation Voyager will acquire next.
The Future Is Commercial
Private sector leaders have created new opportunities for space exploration, backing commercial projects government agencies couldn’t pursue. Companies like Blue Origin, SpaceX, and Virgin Galactic have popularized the idea of joyrides into the cosmos and have a steady customer pipeline.
Moreover, NASA works closely with many privately held corporations to ensure the success of its missions, signing billion-dollar deals with reliable contractors.
Although space exploration remains off-limits for most people, future milestones could help drive down costs further. Many companies have streamlined their development practices, resulting in frequent missions with much success. Some have even built reusable rockets to maintain low prices.
What does this mean for the decades ahead? Likely, private companies will launch several commercial space stations and carry all-civilian crews into orbit. The possibilities are endless in the private space sector, and what was once a sci-fi dream just might come true.