Space Connect: Unlocking value across the economy

Today, space technologies deliver value across agriculture, insurance, emergency response, and telecommunications.

In the process, ever-larger satellite constellations and high-resolution sensors produce terabytes – soon to be petabytes – of raw data. As space technologies reshape terrestrial industries, all that data needs curation, packaging and delivery to users.

“The biggest economic drivers in space aren’t always the flashy rockets or satellites that we see in the headlines,” said Rafael Kargren, Professor of Space and former Head of Future Programmes at the European Space Agency (ESA). “Whoever builds the trusted data spine for space will really unlock massive downstream innovation.”

In the latest Space Connect webinar hosted by the International Telecommunication Union (ITU), experts shared insights on how space assets can drive sustainable growth on Earth.

“Satellite communication is the backbone of the global space economy,” Kargren added, noting now constellation-scale deployments unlock downstream services and enable other sectors.

“It has immediate economic spillover – powering global Internet, logistics and defence. With constellations such as Starlink and others scaling up, satellite communication clearly demonstrates direct, tangible economic value.”

From networks to new frontiers

Communications systems are the main purpose for space investments and the foundation for all the benefits provided by space and satellite services. But beyond telecom networks as a commercial entry point, long-term value lies in enabling data-driven services and operational efficiencies for non-space sectors.

Mohamed-Slim Alouini, Professor of Electrical Engineering at Saudi Arabia’s King Abdullah University of Science and Technology (KAUST), emphasized the broader connectivity ecosystem, including growing reliance on the Internet of Things (IoT) for productive activities and innovative devices, from crop-monitoring drones to soil sensors for efficient irrigation.

“When we talk about connectivity, we are not only talking about connecting people, but we are connecting all kinds of IoT devices scattered in hard-to-reach rural environments for a variety of applications in the context of smart agriculture.”

In-orbit processing

Still, without shared international hubs and globally harmonized standards, the value of millions of satellite observations will remain fragmented and underused.

Massive data could soon be processed in orbit, before it even leaves the satellite. A current ESA prototype mission is exploring this concept.

“We launched a prototype CubeSat at ESA, and that has a demonstration of onboard processing,” Kargren said.

Extensive filtering eliminates over 95 per cent of images collected, reducing the burden on downstream processors and making satellite data immediately actionable for agriculture, insurance, disaster response and other sectors.

Luxembourg’s experience

Small nations seeking economic diversification through space investment need a highly targeted approach, said Mathias Link, Deputy CEO of the Luxembourg Space Agency.

Specialization, clear selection criteria, and strategic investment to attract talent and capital are key.

“We can only support companies that have sound business plans and at least a chance to make money at a certain stage in commercial markets,” Link said.

Each country, he added, must translate its own comparative advantages into solutions that end-users understand and are willing to pay for, rather than assuming the market will follow every satellite launch.

Innovative finance and asset models

High upfront costs, long revenue-readiness times, and uncertainties about insurance coverage all deter traditional investors and constrain financing.

Professor Dewey Yee, who teaches space commerce at Hong Kong Polytechnic University and has extensive experience in aviation finance, argued for an asset-centric approach.

“The best way to make money is to invent something,” Yee suggested. “But the second way is to finance it.”

Certain spacecraft components, such as fairings (external structures to reduce drag on air- or spacecraft) and reusable engines, could be leased, insured and redeployed, Yee suggested. Leasing or rent-back arrangements for “identifiable parts of spacecraft that retain value” could unlock dormant capital.

Turning hardware into financeable assets will require new valuation frameworks, a developed secondary market, and specialized insurance products, he acknowledged. But it could markedly broaden the investor base for space missions.

Investing in the orbital future

In space development terms, the next decade could well shape the next century, suggested Sitara Mehdiyeva, Head of Spectrum Management Division at Azercosmos, the space agency of Azerbaijan,

“The single most important action nations and institutions should take, right now, is to invest in building their own human capital and regulatory frameworks for space.”

Growing numbers of space missions, meanwhile, compete for shares of the world’s limited radio spectrum and orbital slots. Coordinating and balancing the interests of all nations is the job of ITU as custodian of the airwaves.

Mehdiyeva compares satellite spectrum allocations to traffic rules on Earth. Every country needs them.

“Spectrum is not just a technical matter. It’s part of our everyday life,” she said.

Spectrum policy brings visible economic value when it translates into jobs, competitiveness and national resilience, she added.

Open data for all

Artificial intelligence (AI), edge computing, and 6G telecom networks will shape the next phase. International cooperation will be more important than ever before to keep the crowded space environment viable.

“No country has an interest to do it all alone,” Link said. “Because space, in the end, is there for everyone.”

Proprietary data management models concentrate value and secure concentrated revenue – often a consideration in high-margin sectors like mining, defence and logistics.

Open-source platforms, in contrast, can lower barriers for space start-ups and researchers, particularly in developing countries. Shared access to baseline data can spur wider innovation through, broader adoption and valuable cross-sector spillovers.

The European Union’s Earth-observation programme, Copernicus, exemplifies a commons-based open data model that shares free satellite images and measurements.

ITU’s panel moderator Bryce Kennedy advocated open-source platforms and a “grassroots approach” to spread the benefits of space development globally. He closed with a call for participation and openness: “Finding as many voices as possible to help shape space is really key.”

Future episodes

Replay Space Connect Episode 8: Space as an Economic Driver

ITU’s webinar series will keep exploring critical topics like space sustainability, advances in launch technologies, and new economic opportunities emerging from space-enabled services.

Don’t miss Space Connect Episode 9 – Highlights on Space Sustainability: ITU SSF-2025 and SWF 7th Summit for Space Sustainability – live on 3 December 2025 at 15:00 CET.

Other upcoming topics include Earth observation, climate monitoring, and emergency response, as well as direct-to-device (D2D), machine-to-machine (M2M) and cislunar (Earth-Moon) communications.

Tell us your top three areas of interest for future Space Connect sessions

The sessions, hosted at ITU headquarters in Geneva, Switzerland, for participants worldwide, offer insights on how evolving satellite tech will shape future global connectivity and communications.

Learn more about the ITU Radiocommunication Sector (ITU-R) and its Space Services Department

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