Morgan Stanley estimates the space industry, worth about $350 billion today, will grow into an economy worth more than $1.1 trillion by 2040, a team of analysts wrote in a note Thursday.
Private companies from the likes of Elon Musk and Jeff Bezos are driving much of the recent innovation in the industry, and Morgan Stanley admits investment opportunities are limited. Look to companies providing and benefiting from internet bandwidth, the firm says, where most of the upcoming value in the space industry will come.
Michael Sheetz
Sounds impressive… until you realize that over the course of 20+ years, this amounts to an annual growth rate of just 5%! That’s lower than the GDP growth of some emerging economies – China may be an extreme example, but it has sustained an average growth rate of about 9.5% over the last 30 years. So if the space industry only grows by 5% per year for the next 20 years, it will not be a particularly worthwhile investment.
Post a Comment