The global space economy is expected to be worth $1.8 trillion by 2035, according to a World Economic Forum report

According to a report by the World Economic Forum in collaboration with McKinsey & Company, the space economy is expected to grow exponentially to a staggering $1.8 trillion by 2035.

The report, titled “The $1.8 Trillion Global Economic Growth Opportunity,” said this economic explosion is expected to impact nearly every industry across the globe while providing solutions to the world's greatest challenges.

According to the report, the value of the space economy will rise from $630 billion in 2023 to an astronomical $1.8 trillion in 2035, registering an average growth of 9 percent, significantly outpacing the growth rate of global GDP. Additionally, non-traditional players such as ride-hailing apps will benefit exponentially from the space economy.

Specific industries expected to contribute over 60 percent of space economy growth include supply chain and transportation, food and beverage, government-sponsored defense, retail and digital communications.

These industries would generate billions in space-related revenue. The report also highlights the broader implications of this economic revolution. It highlights how space will play a critical role in mitigating global challenges such as disaster warning, climate monitoring, improved humanitarian assistance and greater prosperity.

The future looks promising with countries such as Japan, Peru, Saudi Arabia and Thailand, including India, investing heavily in space initiatives, the report added. It also highlighted the role of the private sector in continuing to drive innovation and access, particularly in on-orbit inspections, maintenance services and commercially funded space stations.

The impact on space goes beyond rocket science and is inextricably linked to our daily activities such as weather forecasting, dinner delivery, and even the use of smartwatches.

The report outlined that industries such as supply chain and transportation will rely heavily on satellite and other space technologies to provide cutting-edge services.

This report was created based on insights from over 60 thought leaders across industries and geographies. It provides a deep understanding of the space economy, highlighting factors ranging from commercial services to defense applications.

Crucially, every industry can help advance the space economy by advocating for standardization and harmonization, improving accessibility and raising public awareness.

How quickly the space economy expands will depend on the development of technological innovation and financial competitiveness, but if all goes well, it could reach an estimated value of $2.3 trillion by 2035, the report said.