This was the decade the commercial spaceflight industry leapt forward


Two years into the decade, on May 25th, 2012, a small teardrop-shaped capsule arrived at the International Space Station, packed with cargo and supplies for the crew living on board. Its resupply mission at the ISS wasn’t remarkable, but the vehicle itself was unique: it was a Dragon cargo capsule, owned and operated by a private company called SpaceX.

Before 2012, only vehicles operated by governments had ever visited the ISS. The Dragon was the first commercial vehicle to dock with the station. The milestone was a crowning achievement for the commercial industry, which has permanently altered the spaceflight sector over the last 10 years.

This decade, the space industry has seen a shift in the way it does business, with newer players looking to capitalize on different markets and more ambitious projects. The result has been an explosion of growth within the commercial sector. It’s allowing for easier access to space than ever before, with both positive and negative results. Such growth is providing the commercial space industry with lots of momentum coming into the 2020s, but it’s unclear if this pace is something that can be kept up.

A new paradigm

Commercial companies have been involved in spaceflight since the dawn of space travel. Private companies built the Saturn V rocket for NASA, which took the first humans to the surface of the Moon. But for much of the 20th century, the companies that built those rockets and spacecraft weren’t purely focused on space travel. Instead, behemoth contractors specialized in space technologies, while also focusing on other areas of tech such as aviation and defense. They pursued purely government contracts — either from NASA or the Department of Defense — and most often the government told them exactly what to do.

“Under the old model, the government would hire a Lockheed or a Boeing or somebody to build one of these rockets,” Brian Weeden, director of program planning for the Secure World Foundation, tells The Verge. “Almost all the money would come from the government, and the government would have almost complete control over what was built.” It’s the way the Space Shuttle was built; the way the International Space Station was built; the way the future James Webb Space Telescope is being built. All of these things are owned and operated by NASA, though they’ve all been built by contractors.


NASA’s Space Shuttle, built by contractors, flew its final flight in 2011
Image: NASA

For years, companies with the most spaceflight experience pursued these juicy government gigs, forsaking the private market. The US’s biggest launch provider since 2006, the United Launch Alliance, was mostly established to loft national security satellites for the DoD. “Because our companies became only interested in and focusing on the government customer, by 2010, at the beginning of the decade, we had no market share at all in the commercial space launch industry,” Greg Autry, an assistant professor at the University of Southern California specializing in new space, tells The Verge. “If a private company from Thailand wanted to launch a TV satellite or an Israeli company wanted to launch a communications satellite, an American launch vehicle was not even a consideration.”

But in the 2000s, a new player emerged in the commercial space arena. Space Exploration Technologies Corp., helmed by billionaire Elon Musk, took a different route than the contractors. The company was purely focused on space travel, with a very ambitious long-term goal: start a settlement on Mars someday. First, it had to build actual rockets, and the company had to be profitable doing so. Armed with private investment from Musk and early adopters, SpaceX started developing rockets on its own. And rather than focus entirely on government contracts, SpaceX pursued any customer it could, from NASA and the DoD, to commercial and international satellite operators. If you had something that needed to get to space, SpaceX wanted to fly it for you.

As SpaceX strived to make a name for itself, NASA started to experiment with a new way of doing business. Known as fixed-price contracting, the idea worked liked this: The space agency would put out a call for a service (for instance, a way to transport cargo to the ISS). Companies would then pitch their own ideas and vehicles to make that happen. If NASA liked the pitch, it would hand over a lump sum of money as investment, and the company would go into development. Once the vehicle was complete, NASA would pay for the use of it. It was meant to be a win-win. NASA would pay less money up front for a service, and private companies would own and operate their final creations.

This model was perfect for a company like SpaceX. It could use the investment from the government to supplement the development of its rockets, and then ultimately use the rockets to make money once development was complete. “That caused them to think creatively,” Lori Garver, the former deputy administrator of NASA under the Obama administration, tells The Verge. “There was a guaranteed market if you could get there.” That’s exactly what happened after SpaceX was tasked by NASA to start servicing the International Space Station. Once the company had developed its Falcon 9 rocket, SpaceX tried to put as many satellites on top of the vehicle as possible.


SpaceX’s Dragon, captured by the robotic arm on the International Space Station, in May 2012
Image: NASA

To capture more customers, SpaceX strove to bring down launch costs through new methods of manufacturing and a vertically integrated business. Famously, SpaceX relentlessly pursued making its rockets reusable, by landing them after each flight — a feat that’s meant to save the company on manufacturing costs. SpaceX has reaped the benefits of its affordable launches, too. Despite a few notable rocket failures, the company is still the most prolific launch provider in the US at the moment, and holds contracts with numerous customers from around the world. “They want to pursue private markets,” Jim Muncy, founder of PoliSpace, a space policy consulting agency, tells The Verge. “And they want to stimulate private markets.”

For better or for worse

Capitalism finally infiltrated spaceflight in the 2010s, and that meant competition was in full swing. Other launch providers looked at ways to also bring down costs over the last decade, with some pursuing reusability as well. New players are coming onto the scene: Blue Origin, Virgin Orbit, Rocket Lab, and more. As launch costs have come down, space has become more accessible than ever.

Over the last decade, Moore’s law has also finally taken hold of spaceflight, with satellites and vehicles being built smaller. These cereal box-sized satellites are easier and cheaper to make than their bus-sized predecessors, and they’re much cheaper to launch, requiring less overall room on a rocket. As a result, companies focused solely on building small satellites have seen enormous success. Research organizations and universities looking to put something into orbit have an easier time of making that happen. This trend, combined with more launch vehicles, has resulted in an explosion of new vehicles and satellite constellations from commercial companies.

With all this progress does come unintended consequences. The rise of SpaceX has also seen the rise of the SpaceX fans. Unlike other CEOs, Musk’s fans revere him as an almost godlike figure, a savior for humanity who will lead us to a utopia on Mars. Criticizing him and SpaceX for any reason comes with major risk, as you will likely be perceived as tearing down progress. That’s unfortunate, because healthy skepticism is warranted these days, as SpaceX’s claims and ambitions have grown loftier than ever. The latest claim is that the company will be landing a giant new vehicle on the Moon by 2022 — but that vehicle hasn’t yet been built, and it certainly hasn’t flown. “Every pronouncement that they make, no matter how wacky it is, is reported without critique, largely,” Linda Billings, a current consultant to NASA’s astrobiology and planetary defense programs, tells The Verge.

Some of the more formidable projects these companies want to undertake could also be detrimental down the road. Notably, SpaceX, OneWeb, and other companies have all been eyeing a new spaceflight market: filling low Earth orbit with tens of thousands of satellites, in order to beam internet coverage to the surface below. In an effort to bolster the progress of the commercial space industry, the government has taken a light touch approach to regulating these more entrepreneurial companies. The Federal Communications Commission, which provides licenses for launches, has been very lax in its approvals, giving SpaceX and OneWeb the go-ahead for their massive satellite initiatives. Now, there’s not much stopping them from increasing the amount of satellites in orbit by several orders of magnitude.


SpaceX’s first batch of Starlink satellites, just before being deployed
Image: SpaceX

It’s unclear what that will do to the space around Earth. Already, there’s concern that so many satellites will transform the night sky, making it difficult for astronomers to make detailed observations of the Universe when so many vehicles are whizzing overhead. But even more concerning is how all these satellites will add to an already congested region of space. Injecting thousands of satellites into orbit over the next few years may drastically increase the chances of things colliding. The end result could be that low Earth orbit becomes too crowded, and essentially unusable.

While this decade saw ambitions grow along with enormous progress within the commercial space sector, many things that had been promised didn’t pan out. Most notably, human spaceflight on commercial vehicles has yet to fully mature. Space tourism ventures Blue Origin and Virgin Galactic argued that customers could be flying this decade. That dream will have to wait until the 2020s. “Branson was saying we were going to start flying tourists in 2008,” says Billings. “And where are we now?” Meanwhile, SpaceX and Boeing have been developing new vehicles to carry humans to the International Space Station, under the new contracting model that NASA used to resupply the ISS. While the process may be less expensive than other contracting methods, the development has still been fraught with delays and setbacks — whether that be from stringent oversight, low budgets, or just plain engineering problems. The first crews were supposed to fly in 2017. Now they will likely fly for the first time in 2020. Creating new passenger spacecraft that keep people alive and safe still takes a lot of time, no matter what contracting method you use.

What’s next?

As the 2020s get underway, the commercial space industry will have a lot to prove, especially since many have their sights set much higher than low Earth orbit. Numerous private companies are aiming to send robotic landers to the Moon in the next few years, while SpaceX, Blue Origin, and more all vow to send people to the Moon someday. It’s unclear how long it will take them to get there, if they can make it at all. The first private company, an Israeli nonprofit, attempted to land on the Moon this year and didn’t stick the landing.

Ultimately, it’s uncertain if there is a solid market for more ambitious forms of space travel. Even the satellite market has softened in recent years, which may explain why SpaceX has tried to turn itself into a consumer-facing business through its satellite constellation. It needs money to stay afloat. The scary thought is: what if there’s not much more money to squeeze out of space? Experts have long been forecasting days where private space stations will dominate low Earth orbit, frequented by tourists on vacation or their honeymoons. Eventually, private companies hope to scour the Moon’s surface for water ice, which they could turn into drinking water or rocket fuel for lunar bases. It all sounds like a great future. “Commercializing the lunar stuff, honestly, is not going to happen as fast, because there isn’t a market for it anytime soon,” says Garver. “But anyone could have told you there was a market for launch outside of NASA.”

The next decade will show us if the commercial spaceflight industry can match the progress it’s seen these last 10 years. Maybe these companies will finally take us beyond Earth orbit, with people along for the ride. Or it may reveal that the market for space is staying close to home for the foreseeable future.

Source: This was the decade the commercial spaceflight industry leapt forward

By Loren Grush

Techylawyer and its authors do not claim to have written this article, we acknowledge the works of the original author

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