From rocket launches to space supply chains: The new industrial chokepoints

The commercialisation of space is creating a new industrial value chain in which launch capacity, satellite manufacturing, orbital infrastructure and space-derived data could become critical bottlenecks. As the global space economy expands, companies controlling these chokepoints may be positioned to capture a disproportionate share of the value.

Launch remains the first bottleneck

The economics of the space industry have changed dramatically as reusable rockets and smaller satellites have reduced the cost of reaching orbit. According to the Goldman Sachs Global Institute, the cost of putting a kilogram into low Earth orbit has fallen from $65,400 in 1981 to about $1,500 today.

But cheaper launches do not eliminate the importance of launch providers. The report describes launch as an upstream chokepoint because almost every part of the space economy depends on getting assets into orbit. With only a limited number of launch-service providers globally, access to launch capacity can influence the cost structure of the wider industry.

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Satellite manufacturing moves towards scale

The second major shift is taking place in satellite manufacturing. Smaller and cheaper satellites have lowered barriers to entry and enabled constellations in low Earth orbit, supporting communications, Earth observation, IoT and geolocation.

This is replacing an earlier model dominated by large, expensive satellites that could cost hundreds of millions of dollars to build and launch. As the number of satellites increases, manufacturing capacity, components and the infrastructure required to operate these systems could become increasingly important sources of competitive advantage.

“The firms and countries that control launch capacity, manufacturing capability, orbital infrastructure, and space-derived data will shape how value is created in the emerging space sector,” the report noted.

Orbital infrastructure creates new value pools

The Goldman Sachs report argues that space is developing supply chains and infrastructure nodes similar to other industrial sectors. Ground stations, satellite communications networks, positioning and timing systems and space-domain awareness capabilities form an increasingly interconnected infrastructure layer.

As space-derived connectivity and data become more widely used, companies outside the traditional space industry could also become customers. The report suggests that space infrastructure could eventually become as essential to businesses as internet infrastructure is today.

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Data could become the next strategic asset

Space-derived data is another potential chokepoint. Earth-observation satellites can generate information for industries ranging from agriculture and logistics to defence and infrastructure. Improvements in persistent Earth observation could deliver higher-resolution imagery with more frequent revisits, expanding the commercial value of satellite data.

The report also sees opportunities emerging in in-space servicing, assembly and manufacturing, potentially creating entirely new supply chains around orbital construction, microgravity manufacturing and lunar activity.

“Space is becoming a new pillar of the industrial economy, with supply chains, infrastructure nodes, and value pools that resemble other sectors,” it noted.

Control of chokepoints could drive returns

As the sector scales, the companies best positioned may therefore not simply be those developing the most advanced rockets or satellites, but those controlling infrastructure that competitors cannot easily replicate.

The Goldman Sachs report expects falling launch costs and greater commercialisation to drive further investment and potentially more M&A activity. Firms controlling critical points in the emerging space supply chain could capture disproportionate value as orbital industrialisation gathers pace.

The result could be a space economy where access, infrastructure and data—not exploration alone—determine who holds the pricing power.

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