Space Industry To Be Worth $3 Trillion In Coming Years, Bank Of America Says

Right now, the only companies that are making headlines in the private space industry are SpaceX, Virgin Galactic, and Blue Origin. Of these, only SpaceX is consistently making progress in reusable rockets and advancing the multi-planet species model. According to Bank of America, however, growth in this sector could make it worth more than $2.7 trillion in a period of 30 years.

This prediction came via Bank of America Merrill Lynch, who wrote a report on Monday noting how the private space industry could be worth a significant amount of money in a few decades, CNBC reports. A lot of it has to do with the lower costs of space flight, advancing technology, and increased reliability of every launch.

"We are entering an exciting era in space where we expect more advances in the next few decades than throughout human history," the report reads.

Bank of America isn’t the only institution bullish about the private industry’s prospects either as Morgan Stanley also has high expectations. According to both companies, the industry right now is worth $350 billion. Unlike Bank of America, however, Morgan Stanley only believes that the industry’s value will reach $1 trillion in the same time period.

Now, these predictions are not so cut and dry, either with the factors that come into play or the companies involved. For example, Morgan Stanley is encouraging investors to look to public entities with stakes in the growing internet networks via satellites, Futurism reports.

For Space 2.0, the companies that are most likely to have a huge role to play include Facebook, Alphabet, Boeing, Lockheed Martin, and Amazon. It’s worth pointing out that turning a profit has always been a problem in the private space industry. On the other hand, with disruptive technologies becoming more common, this might set to change in the coming years.