The Value Structure of the Cosmic Commerce Sector: Insight into Its Operational Steps

The Value Structure of the Cosmic Commerce Sector: Insight into Its Operational Steps

Ever wondered what makes up the space economy? Let's dive into its key segments, as defined by the Organisation for Economic Co-operation and Development (OECD)'s Handbook on Measuring the Space Economy.

The Space Economy Value Chain

This value chain represents the various processes and activities that create and deliver space-related products and services. The chain splits into three crucial parts:

1. Upstream: The scientific and technological foundation of space programs, including activities like R&D, manufacturing, and launch operations.
2. Downstream: Space infrastructure operations and earthly products and services that directly rely on satellite data and signals, such as satellite communications and Earth observation.
3. Derived/Induced: Activities that stem from space activities but are not dependent on them to function, such as technology transfers to the automotive or medical sectors.

Notably, some organizations are now using the term "midstream" to categorize space and ground system operations, connecting satellites to terrestrial infrastructures.

Upstream Space Activities

These activities form the foundation, with categories like:

1. Research: Conducted in higher education institutions, public research organizations, and private research centers.
2. Ancillary Services: Includes finance, insurance, legal services, and consultancies that support the space industry.
3. Scientific and Engineering Support: Provides research, development, engineering services, design, and testing among other activities.
4. Supply of Materials and Components: Involves passive parts (like cables and connectors) and active parts (diodes, transistors, semiconductors) for space and ground systems.
5. Design and Manufacture of Space Equipment: Creating electronic, mechanical equipment, and software for space and ground systems, as well as systems for spacecraft guidance, propulsion, power, communication, etc.
6. Integration and Supply of Full Systems: Encompasses the complete production of satellites, orbital systems, and launch vehicles (including launch services).

Downstream Space Activities

Downstream activities offer products and services relying on satellite signals or data to consumers and businesses. They include:

1. Space and Ground Systems Operations: Companies offering satellite capacity, primarily for communications but increasingly for Earth observation. They manage networks of ground stations at critical locations (often polar or mid-latitude).
2. Data Distribution Services: Simplifying the access, use, and distribution of geospatial products.
3. Supply of Devices and Equipment: Includes the manufacturing of chipsets, terminals, and Global Navigation Satellite System (GNSS) equipment, as well as the development of software.
4. Supply of Services: Offers direct-to-home (DTH) provision (television, radio, broadband), positioning, navigation, and timing services, cartography and mapping, logistics and distribution, sales and marketing, surveillance and security, timing and precision work, and communications.
5. Supply of Data Added-Value Services: Transforms raw data from various sources into easily consumable information, aiding businesses in various sectors.

Remember, different organizations might have slightly different takes on the space economy value chain. This aspect is crucial to keep in mind when comparing published space economy size estimates between organizations.

As you now have a broader understanding of the space economy value chain, you're one step closer to understanding the exciting frontier that is space commerce! 🚀🚀🚀

1. The upstream segment of the space economy, as defined by the OECD's Handbook on Measuring the Space Economy, involves research and development, manufacturing, and launch operations, collectively known as commercial space.
2. The downstream segment of the space economy relies on satellite data and signals to provide products and services, such as earth observation, satellite communications, and technology transfers to various sectors like the automotive and medical industries.
3. The space economy also contains a midstream segment, which refers to space and ground system operations that connect satellites to terrestrial infrastructures.
4. The space economy value chain encompasses sectors like science, technology, and various ancillary services, such as finance, insurance, legal services, and consultancies that support the space industry.

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