WASHINGTON — The Defense Department should step up support of commercial space companies to take advantage of capabilities that might otherwise be lost, a new report concludes.
That recommendation is among several in a study called Space Agenda 2025 released Oct. 24 by The Aerospace Corporation and its Center for Space Policy and Strategy (CSPS). The report is intended to provide advice to the next administration on key topics in civil, commercial and national security space.
In a briefing held in advance of the report’s release, Sam Wilson, systems director at CSPS, said the Defense Department is benefitting from growing commercial capabilities in areas like commercial remote sensing, much of which was fueled by a boom in private investment in space companies several years ago. Private investment has dropped significantly since a peak in 2021, though, and investors say access to capital remains difficult for space companies today, especially those trying to raise larger, later rounds.
“For the Department of Defense, this unique investment environment over the last several years presents an opportunity and a dilemma,” Wilson said. The opportunity comes from the emerging commercial capabilities it can use, such as in imaging.
“The dilemma is that these companies need revenue,” he said. “The commercial markets for many space capability areas cannot sustain these companies.” He said Aerospace looked at about 150 commercial space-based remote sensing companies and estimated that “very few, if any” could be profitable without government revenue.
The report recommended the Defense Department consider “anchor tenancy” for such companies, becoming the largest customer. “Without consistent government demand, many U.S. commercial space firms that offer valuable defense applications may not survive,” Wilson said. “With the right funding and approach, DOD can ensure it can use these assets for defense purposes in the longer term.”…
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