Declining costs mean more rising rockets; launch costs key for space industrialization

Unlocking new markets, from broadband to the moon

The SpaceX IPO has renewed investor interest in the rapidly evolving space economy. But to understand the opportunity that space may present requires an understanding of launch costs and to what extent they can continue to decline. US Aerospace and Defense analyst Ron Epstein explains the economics underpinning the next phase of space development. Ron discusses how advances in rockets have already reduced launch costs from roughly $20,000 per kilogram to as little as $1,000-$2,000, with the potential to fall toward $100 per kilogram. The conversation explores the hurdles to and promise of further declines in costs, the importance of reusability and how dramatically lower launch costs, if achieved, could unlock new markets-from global broadband and orbital data centers to next-generation defense, space manufacturing, and lunar resource development. We also discuss some of the unique challenges space-based data centers-launch costs matter but so do cooling solutions.

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