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The Global Space Tourism Market size is estimated to grow by USD 6.96 billion accelerating at a CAGR of 14.1% between 2023 and 2027. The market is being driven by rising investment in travel and tourism, particularly benefiting due to increased expenditure. While unconventional, space tourism shares the adventurous allure of adventure tourism, the fastest-growing segment. Companies are pouring investments into this sector, anticipating a surge in interest and demand. Notable developments such as OneWeb, the Starlink mission, Virgin Galactic, and Blue Origin, spearheaded by influential figures like Richard Branson and Jeff Bezos, are fueling this market expansion. Although technical risks are acknowledged, they are not hindering the market's growth trajectory.
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The market share growth by the suborbital tourism segment will be significant during the forecast period. Suborbital tours are a more cost-effective solution for people who want to experience a space visit compared with orbital tours. Passengers are expected to experience the acceleration of rocket launch, weightlessness, and the sight of Earth from space.
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The suborbital tourism segment showed a gradual increase in the market share of USD 2.70 billion in 2017 and continued to grow until 2021. Space travel is inherently a risky proposition. Though the flights meet the government-mandated safety regulation, the regulations are only theoretical and cannot completely assume safety. The training required for suborbital space tourism prior to the launch varies from 1-4 weeks. The cost of a spaceflight ticket ranges from USD 100,000 to USD 500,000, which is only a fraction of the cost that NASA has to incur to send astronauts into space. This is expected to decline further in the future as the second generation of space crafts is expected to streamline the process and provide better experiences at a lower cost. Thus, the aforementioned factors will drive the market during the forecast period.
North America is estimated to contribute 52% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The evolution of the concepts is expected to drive the development of the technology in North America since most major stakeholders, such as SpaceX, are based in this region. In February 2021, SpaceX announced an initiative to take a four-person crew for a space mission by the end of 2021. The company is aggressively advancing its space-related technologies in collaboration with various other regional and intercontinental space industry stakeholders. Therefore, it can be concluded that enduring investments in orbital technologies will also nurture the development of technologies in North America, which, in turn, will drive the growth of the regional market during the forecast period. Since the beginning of 2021, there has been a rise in space research activities, which has propelled the demand in the region. Thus, the regional market is expected to grow during the forecast period.
The Space Tourism Market is gaining momentum with increasing interest from adventure travelers and High Net Worth Individuals (HNWI), who seek leisure and recreational activities beyond Earth for business and personal purposes. Technological innovations in spaceship architecture and space launches are overcoming obstacles such as soot and ozone layer concerns. Development activities are driven by joint ventures, buyouts, and strategic resource utilization, while legal frameworks and public interest shape the market landscape. End-user concentration influences market dynamics, prompting exploration of alternative space travel solutions. MIT and other institutions contribute to space tourism advancements, fostering user inclination through space tourism initiatives. As the industry evolves, stakeholders navigate technological challenges to enhance the feasibility and safety of space travel experiences.
The market is propelled by growing spending in travel and tourism, where space tourism stands to benefit from increased expenditure. Although not traditional, space tourism aligns with the adventurous appeal of adventure tourism, which is the fastest-growing segment. Companies are investing in this sector, anticipating a surge in interest and demand. This market expansion is fueled by developments like OneWeb, Starlink mission, Virgin Galactic, and Blue Origin, led by prominent figures like Richard Branson and Jeff Bezos. Technical risks are acknowledged, but they don't deter the market's growth trajectory. Satellites and suborbital spacecraft play pivotal roles, backed by research groups like Suborbital Applications Research Group (SARG). Collaborations and partnerships between private companies and CXOs drive innovation and market dynamics. As the sector evolves, mergers, acquisitions, and product launches define its trajectory, promising an exciting future.
A prominent trend in the market is the decreasing costs associated, expected to continue during the forecast period. Traditional satellite launches incur high expenses, around USD 10 million plus insurance costs. However, Virgin Galactic aims to offer space tours at USD 0.25 million per person, attracting both individual passengers and institutions for suborbital flights. The anticipated use of next-generation space planes reaching orbit is expected to significantly reduce space travel costs, making it economically viable for a broader customer base. This cost reduction opens opportunities for launching multiple nanosatellites, further driving market growth in the forecast period.
The primary challenge restraining the growth of the market is the significant risk. The high-risk factor is a major hindrance to the global market's expansion. Given the expensive nature, the target audience consists of high-net-worth individuals who can afford activities like mountain climbing or skydiving. The preference for such activities depends on factors like availability, physical fitness, and associated risks. While affordability is not an issue for the target market, the correlation between participation and risk coefficient is high at 88%, with a negative correlation indicating that higher risks lead to lower participation. Consequently, the substantial risk involved in space tourism is expected to impede market growth in the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
The burgeoning Space Tourism sector caters to a diverse clientele, from adventure travelers and High Net Worth Individuals (HNWI) to leisure seekers and those pursuing business interests beyond Earth. Technological innovations in spaceship architecture and propulsion systems drive developments aimed at ensuring safety procedures and mitigating pollutants that could affect the ozone layer and stratosphere. Spacecraft advancements, including those orbiting Earth (LEO) and beyond, reflect ongoing research and development efforts by space agencies and private organizations. Scientific initiatives and promotional operations engage consumers, while regulations and legal frameworks shape market segmentation and ensure sustainable practices. Infrastructure investments and manufacturing costs remain pivotal as billionaires and commercial space ventures contribute to the sector's revenue growth, with future missions aimed at exploring the Moon, Mars, and beyond.
Commercial space tourism is rapidly advancing, driven by a blend of recreation and business purposes that appeal to adventure travelers and High Net Worth Individuals (HNWI). Leisure activities in space are increasingly attractive, with technological innovations focusing on overcoming atmospheric challenges and ensuring the safety of space adventures. Launch vehicles and facilities are pivotal in achieving Earth's orbit at significant speeds, while developments in space tourism technology aim to lower costs and expand revenue streams. Research and development efforts prioritize alternatives that minimize pollutants and mitigate ozone layer depletion, considering the impact on the stratosphere. MIT and other entities contribute to technical advancements, shaping consumer engagement and the future landscape of commercial space tourism.
Space Tourism Market Scope |
|
Report Coverage |
Details |
Page number |
149 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.1% |
Market growth 2023-2027 |
USD 6.96 billion |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
13.38 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 52% |
Key countries |
US, Russia, UK, China, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airbus Group SE, Axiom Space Inc., Bigelow Aerospace LLC, Blue Origin Enterprises LP, Excalibur Almaz Ltd., PD AeroSpace Ltd., Sierra Space Corp., Space Adventures Inc., Space Exploration Technologies Corp., Space Perspective, The Boeing Co., Virgin Galactic Holdings Inc., World View Enterprises Inc., Zero 2 Infinity SL, and Zero Gravity Corp. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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