Space tourism is here to stay and the latest report from Allied Market Research (AMR) estimates the global space tourism industry, which generated $598.4 million in 2021, to generate $12.6 billion by 2031, witnessing an annual growth of 36.4% from 2022 to 2031.
1. Tech advancements
The rise in technological advancements, consistent transformations in technology, and the rising trend of space tourism are the main drivers of the global space tourism market. However, AMR is cautious about the not unusual technical risks with these types of activities, which may end up restricting the market growth. Nonetheless, the sentiment seems to remain positive with the focus on research and development initiatives by market players creating many opportunities for the market growth in the coming years.
2. Sub-orbital segment leads
As more people become interested in space activity, there is a growing demand for orbital space tourism. The sub orbital segment held the highest market share in 2021, accounting for nearly three-fifths of the global space tourism market. Sub-orbital flights have been popular over the past two years and this modality is estimated to maintain its leadership status until 2031, as it allows individuals to experience weightlessness and observe space without actually exiting the Earth’s orbit. However, the orbital segment is projected to manifest the highest annual growth of 37.2% from 2022 to 2031.
20 years ago today Dennis Tito became the 1st space tourist, and up until last year orbital space tourism had only been done by @roscosmos. But, the US private sector has come so far so fast that private astronauts are scheduled to orbit the Earth on a US spacecraft this year! pic.twitter.com/e9vY2mErcF— Garrett Reisman (@astro_g_dogg) April 28, 2021
3. Commercial space tourism
The commercial segment is also among the top choices of the latest space travellers. In 2021, commercial space tourism held the highest market share accounting for nearly three-fifths of the global space tourism market. Seven out of the thirteen commercial spaceflight flights, which were carried out by various private and governmental entities, were completed successfully, thus boosting the segment. The International Space Station (ISS) is now open to non-astronauts thanks to NASA and other space agencies and international governmental entities. To promote space tourism in Low Earth Orbit, NASA has joined forces with Axiom and SpaceX in a triangular alliance.
4. US leads market dominance
There are no doubts as to the dominant market leading the space race of the XXI century. North America held the highest market share in terms of revenue in 2021, accounting for more than two-fifths of the global space tourism market. The continent is likely to dominate the market for a long time to come. This dominance is due to a highly developed infrastructure and a sizable research and development base, which, according to the market research, will enable it to dominate the global market in terms of revenue throughout the anticipated time.
However, it is worth noting that the market expansion has also been fueled by the sizeable presence of small and medium-sized businesses in North America that supply goods and services to industry titans like SpaceX, Blue Origin, and Virgin Galactic. Due to high-net-worth individuals’ preference for space tourism and the expansion of technology investments in the area, the US is anticipated to maintain its supremacy over the projection period.
While North America is dominating most of the space market, other world regions are laying the ground to launch their potential and join the race to the stars. The LAMEA (Latin America, Middle East and Africa) region is expected to witness the fastest annual growth of 68.1% from 2022 to 2031, according to the research. Factors such as growth in space activities, government initiatives and investments are driving growth in LAMEA space industries.