Chandrayaan-3 – mission and launch managed by ISRO (Indian Space Research Organisation) – launched to the moon yesterday amidst much applause and cheer.
Prime Minister Narendra Modi said, “Chandrayaan-3 scripts a new chapter in India’s space odyssey. It soars high, elevating the dreams and ambitions of every Indian. This momentous achievement is a testament to our scientists’ relentless dedication. I salute their spirit and ingenuity!”
This historic milestone got us thinking: Could space tourism become the next big thing in tour and travel industry?
Here, we deconstruct what it is all about…
The global space tourism market revenue is expected to reach US$ 678.3 million at the end of 2023. Overall space tourism demand is likely to rise at an impressive 38.6% CAGR through 2033. The space tourism industry is projected to reach around US$ 13,239.5 million in 2033.
Types of Space Tourism
Orbital space tourism, lunar space tourism, and suborbital space tourism are a few types of space tourism. Increasing inclination towards opting for space tours to get new experiences of space will boost the market.
Currently, space tourism is very expensive and only a small segment of consumers are able and willing to get this space experience. However, advancements in space technologies are gradually changing this.
It is expected that the development of new space technologies that will reduce space tour and trip prices will boost the global space tourism industry during the projection period. Over the next 10 years, more and more people belonging to the middle class will opt for space tours. This will generate lucrative revenues for space tourism companies.
Another key factor that will propel space tourism demand is the development of new commercial destinations in space. Several governments and space agencies are putting efforts to build commercial space stations or destinations. These destinations or stations will be available to both private sector and government customers. This will bode well for the market.
Companies such as SpaceX, Blue Origin, and Virgin Galactic are blazing their paths into space tourism. They are spending huge amounts on research and development activities, experiments, and space technology testing.
Space Tourism Market Outlook
As per FMI, the space tourism market expanded at 18.6% CAGR from 2018 to 2022. For the projection period (2023 to 2033), the market is set to progress at 38.6% CAGR.
The growing popularity of space tourism among the middle-class population is expected to boost sales through 2033.
Strategic collaborations between direct suppliers and indirect suppliers in the industry have paved the way for innovation. Large investments are being made to develop the space tourism industry worldwide.
Space tourism encourages travelers across the Earth to take experienced leisure, recreational activities, and business purposes as well. There have been technological innovations, which are contributing to the growth of the market.
There has been a significant contribution by high net-worth income individuals towards growth in adventure travel and rise in spaceflight which is enhancing the growth of the space tourism market.
Key players in the market are revitalizing the sector with research and development programs for building orbital and suborbital vehicles for traveling into space.
A sharp decline in the cost of space exploration operations will create lucrative opportunities for companies. This is due to the development of the next-generation space plane.
However, with the launches of rockets, the environment is impacted in a big way. For instance, the discharge of hazardous gasses is facilitating ozone layer depletion. This could act as an impediment to market expansion.
Space tourism is now expanding to be a part of adventure tourism and this is expected to develop further. Making space tourism economically affordable for the masses will help the market thrive.
The initiatives taken by the local and central governments will also boost space tourism sales between 2023 and 2033. Also, infrastructural development will positively impact the space tourism industry.
Key Trends Shaping the Space Tourism Industry
• Space Transportation Shaping the Growth of the Space Tourism Industry
• Space transportation has been an integral part of the space industry for a long time now. There has been technological development to enable space transportation, from the standpoint of suborbital transportation, orbital transportation as well as parabolic flights.
• With the sheer involvement of space agencies, and supporting private players in the space market, the industry is expected to have significant growth. For instance, there are companies such as Blue Origin and SpaceX that have launched their vehicle systems. These systems are reusable and can be used for various missions.
• Advancements in the technology for space transportation will boost the space tourism market. The involvement of sustainability as a growth aspect in space tourism will also impact the industry.
• Rise of Hypersonic Space Travel to Positively Influence Industry
• Low-cost travel space is definitely on the rise and its scope is endless. One of its key aspects is the growing popularity of hypersonic space travel, which is traveling from a certain destination to another destination with the help of aircraft.
• In a reduced timeframe, these rockets can travel from one destination to another. Once the flight becomes commercially in use, there would be regular commutation between the continents. With the high adoption of technology, the prices incurred in space travel are going to come down.
• There is a viable possibility of space travel by its 10th generation which is going to make the future of commutation rather easy. Further, with technological advancement, this approach is actually on the verge of complete implementation.
What are the Restraints in the Growth of the Space Tourism Market?
Significant Risk to Climate Incurred by Space Tourism to Restraint Market Development
There is this huge possibility that the space tourism industry might lead to the depletion of the ozone layer which is the base for sustaining human life on Earth. The key reason behind such occurrences is the burning of fossil fuels which absorbs light and heat from the sun, turning it into a powerful influence on climate warming.
When rockets are launched into space, they release black carbon into the stratosphere and it stays there. The Black Carbon Emissions currently stand relatively low, but when all the projections and growth will be aligned, it will bring all these threats into a real occurrence.
How is ISRO Promoting Space Tourism across India?
ISRO Developing Human Flight Capability Towards Space Tourism to Boost Market
• The Indian Space Research Organization (ISRO) is striving to develop its capabilities towards space tourism by executing the demonstration of Human Flight toward Low Earth Orbit. The Indian Space Promotion and Authorization Centre (IN-SPACe) is promptly looking for active participation from the private sector to carry on with space activities which include space tourism as well.
• There also has been implementation to promote, authorize, and handhold these activities from the private sector to incorporate into the space domain. Not only is that but the Department of Space undertaking the process of a space policy that is comprehensive and integrated. This will offer direction to the activities of the Private Indian Space Industry.
• IN-SPACe plans on sharing the technical facilities across ISRO centers along with private entities. This will not only create dimensions of space advancement but will also bring economic benefits as space tourism evolves.
Which Age Group Prefers to Travel More to Space Tourism Locations ?
The popularity of Space Tourism Remains High Among the Age Group of 16 to 25
While space tourism is still in its developing stage, students are held more responsible for the expansion and initiation of space tourism travel. The age group 16 to 25 is more likely to prefer space tourism than any other group in general.
Space tourism holds significant advantages and future scope where it can provide educational benefits to students of this age group. Young people have curious minds and their ability and willingness to explore more tempt them to opt for space tours.
Competitive Landscape
Keyspace tour companies are employing a wide variety of strategies to dominate this market and gain profits. New space tour offers, investments in advanced technology, partnerships, acquisitions, and collaborations are a few of the key strategies adopted by space tourism providers.
For instance:
• Virgin Galactic is now providing modified offers on space plane flights where a visitor is separated from the plane. This gives the experience of weightlessness although it is highly expensive.
• In 2022, by sending 6 tourists on a joyride trip outside Earth, Blue Origin conducted its first space tourism launch.
Credits – These insights are based on a report on the Space Tourism Market by Future Market Insights.
