Max Polyakov forecasts that the commercial space investments will cross the numbers of Q1 and Q2 in the final quarter despite the Pandemic.

The NewSpace Industry Unaffected By The Falling Economy During The Pandemic

A global recession, financial crisis, bankruptcy, and unemployment have been a few of the most important topics of concern during the Pandemic. However, the NewSpace industry, despite the falling economy, could remain intact on its way to growth. While other technology-focused industries and companies resorted to laying off for saving their face, commercial space proved to be a safer ground for the employees and jobs comparatively. Companies like Northrop Lockheed Martin, Grumman Innovation Systems, Rocket Lab, Firefly Aerospace, and SpaceX have continued to grow in 2020, overcoming all the economic challenges during the Pandemic.

Investment Growths For Space

2020 started on a good note for the NewSpace industry with 22 new launches and 1.2 billion dollars of investment. However, just like other sectors, the Pandemic changed the economic scenario for the commercial space as well. Max Polyakov estimated the investments for the second quarter to have gone down to 312 million dollars. But, despite the depletion in the investments, companies operating in the commercial space did not stop making new launches. 20 new launches were made by the end of the second quarter.

While it was the time of the early lockdowns that led to uncertainty and failures in several sectors, the NewSpace industry used the time to thrive and make historical achievements. The industry witnessed an extraordinary partnership between the US government, NASA, and a private company SpaceX, for a successful project. SpaceX, with its launch, took astronauts to the International space stations for the first time since the Space Shuttle Program of NASA retired in July 2011. The success of the launch changed the dynamics for the NewSpace industry for good, with SpaceX and OneWeb making deals worth more than 3 billion dollars.

Even though the exact numbers can only be calculated after the end of the third quarter, Max Polyakov has forecasted that the numbers will cross Q1 and Q2. The company also pointed out the change in investment trends. During pre-COVID-19, investors took an interest in startups with a potential future, pandemic changed their behavior. The second and the third quarter showed their changing interests towards mature companies that can give immediate revenues.

New Missions For The Red Planet And Moon

The impressive number of missions and launches this year were either focused on the Red planet and the Moon. Particularly Mars missions became the highlight because of a specific planetary alignment that happens after 26 months only. The China National Space Administration launched a robotic spacecraft in space with an orbiter, rover, and a lander. The United Arab Emirates Space Agency (UAESA), taking advantage of the alignment, launched mission ‘Hope’ as its first attempt to go interplanetary. And NASA sent its Perseverance Rover to Mars that is expected to land by February next year.

But besides the launches, NASA announced its Artemis Program that plans to return humans to the Lunar land by 2024. While the research is all set to kick-start next year, the project has already received investments of 628.2 million dollars.

Opportunities & Expansion Of Commercial Space

Despite the delays due to the lockdown and massive adjustment requirements, the NewSpace sector not only survived but thrived during the Pandemic when other sectors were fighting the challenges. However, while Firefly Aerospace, a Texas-based company, is all set to launch its two-stage Firefly Alpha rocket, a few companies like OneWeb and Vector Launches faced bankruptcy initially. But OneWeb found new investors who are expected to invest 1 billion dollars in the company.

Even though with no COVID-19 vaccine in the vicinity, and several sectors succumbing to the new lifestyle, companies in the commercial space industry are projecting a fantastic future. Dr. Max Polyakov of Noosphere Ventures finds the secret to success in the NewSpace industry the vertical expansion of the business.