MUSCAT, JAN 8
The Middle East's space ecosystem is on the brink of an unprecedented transformation, with a comprehensive analysis predicting phenomenal growth and a reshaping of the global space narrative. Euroconsult's latest white paper, titled "Beyond the Stars: The Middle East's Space Ecosystem on the Move," unveils a remarkable surge in the region's space sector, projecting a staggering market value of $75 billion by 2032.
The Middle East has embarked on a remarkable journey, driven by economic diversification, strategic vision, and technological innovation. Speaking at the first Middle East Space Summit in Muscat, Steve Bochinger, Affiliate Executive Advisor at Euroconsult, said the region's ascent within the global space sector is unparalleled. This growth is spurred by a convergence of factors, including a dynamic market, disruptive innovations, and evolving business models.
The global space economy is experiencing profound shifts, fueled by new supply and demand drivers. The white paper reveals that the value of the global space economy soared from $328 billion in 2017 to a projected $509 billion in 2023. By 2032, it is estimated to reach a remarkable $822 billion. This exponential growth underscores the changing dynamics and increasing importance of the space industry worldwide.
In this evolving space arena, a new balance of power is emerging. The white paper sheds light on government space expenditure in various countries. In 2023, the United States tops the list with $73,200 million, followed by China with $14,152 million, and Russia with $3,408 million, among others. In the Middle East, countries such as the UAE and Saudi Arabia are making significant strides, with investments in space reaching $342 million and $330 million, respectively, in 2023.
Middle East countries are actively redefining their approach to international space relations, aiming to secure a certain form of non-dependence through diverse alliances. Government space expenditure in the region is anticipated to grow from $1 billion in 2013 to $1.4 billion in 2023 and reach $2.7 billion by 2032, reflecting a remarkable 92 per cent growth.
The Middle East's space economy is experiencing a significant surge, as evidenced by the rapid growth it has witnessed in the past ten years. Its value has tripled during this period, reaching an estimated worth of $25 billion in 2023. This upward trend is expected to persist over the next decade, with projections indicating that it will expand further to reach a value of $75 billion by 2032.
Driving this growth are priority domains of space investments in the Middle East. While satellite applications dominated investments in 2018, accounting for 78 per cent, science, exploration, and access to space garnered 22 per cent. By 2032, satellite applications are projected to constitute 67 per cent of investments, with the remaining 33 per cent dedicated to science, exploration, and access to space.
The region's space market is also rapidly expanding, with tremendous potential for the coming years. Valued at $9 billion in 2015, it reached $13 billion by 2020, forecasted to reach $ 29 billion by 2025 and an impressive $57 billion by 2030, representing a substantial share of the global market. By 2030, the Middle East is expected to hold 7.5 per cent of the global market share, up from 3.5 per cent in 2015.
However, the Middle East faces certain challenges on its path to becoming a space powerhouse. Stakeholders highlight issues such as the availability of skilled labour, entrepreneurship, regulation, governance, infrastructure, government commitment, regional cooperation, and private capital as key hurdles that need to be overcome.
Efforts are already underway to address these challenges. Countries in the region are focusing on attracting and retaining skilled talent, striving to comply with international standards for regulation and governance, and fostering an environment that encourages entrepreneurship and innovation.
Oman Observer is now on the WhatsApp channel. Click here
