The New Space Race and the Future of Private Space Industry

On 1 August 2025, a SpaceX rocket landed safely at Cape Canaveral Space Force Station after launching four NASA astronauts to the International Space Station (ISS). By 2031, astronauts might no longer dock at the ISS at all. Instead, they will choose from a handful of private, state-of-the-art space stations run by commercial operators.

After more than 25 years in orbit, NASA plans to decommission the ISS, guiding it into the ocean. For decades, space exploration has been synonymous with NASA and its global partners. But falling launch costs and rising private investment have shifted the landscape. Analysts call this era “Space 4.0” – a market driven by private enterprise, connectivity, and innovation. Deloitte projects the global space economy will reach $1.8 trillion by 2035.

Commercialisation

The commercialisation of space began in earnest in 2004, when NASA announced it would outsource cargo transport to private companies. Today, commercial firms launch crews, satellites, and soon entire orbital laboratories. With roughly $1.5 billion in NASA seed funding, at least two private space stations are expected to be operating by 2031.

One contender is Starlab, being built by Voyager Space and Airbus. Set to launch by 2028, it will host up to eight astronauts and dozens of research payloads. Microgravity allows experiments impossible on Earth: cells grow in three dimensions, crystals form evenly, and proteins can be assembled without distortion. LambdaVision, for example, builds protein-based artificial retinas in space to produce higher-quality implants for patients with severe vision loss.

Over the next decade, orbital labs like Starlab’s will advance biology, materials science, physics, and agriculture, turning microgravity into a frontier for industrial research.

Data Revolution

While rockets and space tourism capture headlines, the quiet revolution is data. Launch costs have fallen about 95%, enabling a surge in satellite deployment. Around 11700 active satellites now orbit Earth, delivering real-time insights on weather, water, and land.

Hydrosat, co-founded by the late Namibian scientist Japie van Zyl, uses thermal infrared sensors to measure crop water use and stress. Its technology has boosted yields by up to 50%, cut water use by 30%, and reduced energy consumption similarly. In Egypt, farmers cut water waste by 40% after adopting Hydrosat’s tools.

Satellite intelligence is becoming as critical to industry as telecommunications once were. Every serious company should consider a space strategy to improve efficiency, reduce costs, and strengthen resilience against climate shocks.

Beyond Orbit

Space tourism is in its infancy, but it signals the pace at which private enterprise is normalising once-unthinkable ambitions. NASA has shifted focus to the moon and Mars. The Artemis programme aims to establish a sustainable lunar base, with Artemis III expected to return astronauts to the moon around 2027. Fashion house Prada is even designing spacesuits for the mission.

Power remains a constraint. Solar panels suffice in orbit, but for deep shadows or long Mars missions, companies like Zeno Power are developing “nuclear batteries” to provide reliable baseload energy where sunlight cannot reach.

Competition and Geopolitics

The end of the ISS partnership marks a new phase of geopolitical competition. China operates the Tiangong station, and Russia plans its own by 2030. Space diplomacy, security, and the threat of anti-satellite weapons are now as urgent as scientific research.

Africa is rarely part of this conversation, but the continent is being drawn into the orbital race. Djibouti, for example, has partnered with China to build a spaceport and small-satellite infrastructure, extending Beijing’s influence into communications and surveillance.

The commercialisation of space marks a turning point in human progress. In the West, the baton has passed from governments to entrepreneurs. But this transition raises urgent questions of sovereignty, regulation, and access. Space is no longer a scientific abstraction, it is a functioning economy, a sphere of competition, and a tool for national development.