The Consolidation of the Satellite & NewSpace Industry

On The Satellite & NewSpace Matters Podcast we were delighted to be joined by Stuart Gill, a product manager for Leanspace; a service provider that allows space organisations to develop bespoke software systems that are fully integrated, ready to scale and fast. Leanspace’s solution is a first of its kind, enabling space organisations to be more competitive by increasing their agility and lowering their costs. Stewart is one of the new wave of space professionals who are helping to deliver fantastic innovations in the NewSpace industry. Having started his career as a research and development engineer, he very soon became a satellite platform specialist with Thales before moving to Leanspace, where he leads the creation and delivery of new and innovative products. 

We’re talking about NewSpace, and the clue is in the name – it is relatively new – but it’s been massively growing over the last couple of years. A lot of people seem to think that we’re perhaps due some consolidation, or merging of the NewSpace industry with incumbent space and other industries. What do you think the state of the market is looking like right now? 

That’s a good question. I think everyone out there would pay to have a crystal ball which could predict that. I would agree that there’s probably going to be some mergers and some consolidation. There are a lot of actors who have arrived on the market in recent years so it will be interesting to see if there’s space for everyone. Smallsat was a very interesting example. I’ve read already about a lot of mature micro launcher companies who are turning to a verticalized business model and supplying not just the launcher but also the satellite. It will be very interesting to see where the market goes, I think there’s still going to be tremendous growth. I think everyone agrees with the projection that it’s going to be a growing industry for some years to come, but I think in the next couple of years in particular it will be interesting to see how specifically traditional space companies pivot and adapt. I think that they’re already starting to feel some pressure. And I think the NewSpace companies will start to see, especially with the economic conditions we have today, maybe a bit more trouble raising funds. It’s always dynamic in space.

When we look at consolidation in the industry, is there one particular area of the market that you think is potentially oversubscribed, that we’ll see consolidation happening in soon?

I would say the launcher market, if I was being entirely honest. I think that there’s been a lot of investment in the launcher market, but I would like to see more projects which the launch market can depend on coming through the pipeline. Even if all these launcher companies make it, they still need companies to invest in creating constellations, or any kind of satellite project. There seems to be an unequal investment in launchers versus the projects which are coming through in which those companies will rely on as well. For those companies to be commercial, they can’t rely on one or two projects per year, they have to have a sustainable, vibrant ecosystem. I think that they need to have more investment in satellite projects, or any other kind of space project. 

Are there any technologies or innovations currently in development that you think are going to have the most impact on expanding the industry in the near future?

I think the infrastructure and the digitalization space is going to have a huge impact, because it basically drives growth. All the other systems, which we have in the space industry are always siloed, they’re very slow to adapt. The changing ecosystem will be a big driver for growth, whether it’s digital factories, smarter software for operating your missions, cloud technologies… All this will have a big impact on how the industry grows. 

To hear the rest of Stuart Gill’s insights and experience in the NewSpace industry, listen to the full episode of The Satelite and NewSpace Matters Podcast here. 

We sit down regularly with some of the biggest names in our industry, we dedicate our podcast to the stories of leaders in the technologies industries that bring us closer together. Follow the link here to see some of our latest episodes and don’t forget to subscribe.     

The biggest impact on the space and satellite industry 

In episode #75 of The Tech That Connects Us, we sat down with Tina Ghataore, CCO of Mynaric

She has had an impressive career so far, holding C-Suite and executive roles globally, as well as contributing significantly to the aerospace industry. 

We unpacked a lot in this episode, from technology and innovation through to Tina’s own experiences and predictions for the industry. 

We hope you enjoy this episode as much as we did recording it. 

What technology or innovation do you think has had the biggest impact on the space and satellite industry within the last sort of 10 years? 

I think the ability to do one-word processing, that’s been really key. And, that’s going to become even more important.  

I used to remember debates on how much power is generated from solar arrays, you know, whether satellites are fuelled one way versus electric propulsion, but just shrinking their size because different technologies, and footprints have got smaller or highly capable. And those are some of the things that I think, you know, we have to watch closely.  

And laser comm has been around for a couple of decades. I mean, I was on the periphery of all things laser comm in the early years of constellation, remember when 900 was a big number? And now clearly it’s not!  

I think just being able to do more, with less from a side standpoint on satellites, etc, has been critical.  

How do you see the current state of the new space market? 

I’m super excited about it. I think, you know, we’re getting beyond paper pitches. I don’t know if you guys have done the whole Silicon Valley VC route or you know, the UK fundraising or in mainland Europe.  

There’s a lot of it picking up the whole new space scene. But, I’ve witnessed paper projects that were able to raise eight to 10 million on a pitch deck of 10 slides! I’ve also seen some real nuggets of technologies and companies that have come through all of that because the fundamentals were correct.  

Whether it’s new launches, new satellite builders, or a San Fran startup – it’s exciting. And then, looking forward into the future, Earth observation is also interesting. 

Are there any particular technology nuggets that are having a really significant impact that you see across sac comms and connectivity? 

Funnily enough, I think laser comm! But no, honestly, I think when you look at the capex involved in really standing up some of these constellations, you need all these ground stations, or you need so many satellites. You’re collecting all this amazing imagery, what better way to interconnect these satellites by moving data between them.  

And then you know, moving it down through an optical channel in a very secure way, and in large bandwidth. So, I think the promise of laser comm is now I like to say and, you know, we’ve tinkered around with it, we’ve proven out the use cases, it works. And now it’s about –  how can you build the products, scale them and make them affordable? That’s what we’re doing. 

To listen to the full episode, click here

Every Wednesday we sit down with some of the biggest names in our industry, we dedicate our podcast to the stories of leaders in the technologies industries that bring us closer together. Follow the link here to see some of our latest episodes and don’t forget to subscribe.     

World Satellite Business Week – Day 4

Walking around the Westin this morning there were a lot of bleary eyes after the incredible Gala Dinner to celebrate the 25th anniversary of the World Satellite Business Week event. There was delicious food, fantastic entertainment, awards and surprises aplenty, as well as some interesting shapes being thrown on the dance floor, John Clifton I’m looking at you.

Even though I am sure there were a fair few sore heads and aching feet this morning, you wouldn’t know it given the enthusiasm you could feel for the first day of the Earth Observation focused portion of the event.

After a market presentation from Euroconsult’s COO, Steve Bochinger, followed up with an interview with the Undersecretary for Communications and Information Technology for Oman, Ali Amur Al-Shidhani, the day kicked off with a great session with some of the leading operators in the sector discussing their growth strategies for the future.

There were further sessions focusing on how the earth observation will be instrumental in guiding international action on climate change, how ground system as a service solution will create value for the EO sector and how cloud platforms will revolutionise the way we apply analytics and big data solutions to EO data but, unfortunately, after this it was time for the neuco team to get ready to return home.

Thanks so much to the team at Euroconsult, and especially to Emeline Bardoux, for inviting us along and for putting on what seems to be universally agreed to be the best show in the 25 years history of WSBW. Here’s to the next 25!

World Satellite Business Week – Day 3

As we reach the middle point of WSBW, smallsats and space exploration have become the topics of the day.

Smallsat manufacturers GomSpace, SSTL, Aerospacelab, Millenium Space Systems, Terran Orbital and Hemeria took to the stage to discuss everything from how current and future supply chain issues will impact their business, whether vertical integration is the path to follow, and whether having a key prime partner, such as SSTL’s relationship with Airbus or Terran’s with Lockheed, could be a key to success and longevity. 

As space exploration once again is brought to the forefront of the public’s attention with the upcoming Artemis programme and the push towards Mars, 4 key space agencies (NASA, ESA, Australia and Luxembourg) graced the stage to discuss the importance of private company participation in the future of space exploration, spoiler, not only is public-private cooperation important but fundamental to its success. It was also exciting to have confirmation from Jim Free, NASA’s Associate Administrator for Exploration, that there will be a further Artemis 1 launch attempt on the 27th of September.

It was also great to have a rebuttal to the doom and gloom we have been hearing about investment drying up in the industry from the VC community today with Seraphim Capital, Voyager and Karista discussing the space business from their perspective. The entire panel agreed that, far from drying out, investment into the industry is still at extremely high levels, with many funding rounds still oversubscribed, albeit slower than in previous years.

Given the current geopolitical situation and recent specific attacks on European Satcom infrastructure, another hugely important conversation surrounding secure connectivity in Europe took place today with involvement from the European Commission, ESA, EUSPA and the EDA. Catherine Kavvada from the EC reminded us that, although the concept of the need for secure connectivity pre-dates the invasion of Ukraine, the war has helped shape a consensus on the way forward.

Now, we look forward to the remaining days of the event where Earth Observation gets its chance in the hot seat.

World Satellite Business Week – Day 2

While NewSpace has, of course, been a topic on the tips of most tongues this year, it’s been the traditional Satellite world that brought out the biggest crowds on day 2 of World Satellite Business Week. 

What was, quite rightly, tipped as the most anticipated talk of the event certainly didn’t disappoint! CEOs from Eutelsat, Telesat, Intelsat, SES and ViaSat took to the stage to discuss the future for global satellite operators. 

I’m not sure I can even do a summary justice given how much information was shared, however, there were certainly a number of highlights to mention. 

Eutelsat CEO, Eva Berneke, talked about the capabilities of the newly launched Konnect VHTS satellite describing it as “an asset that will address the digital divide across 60 countries of Europe and Africa”. 

SES Satellites CEO, Steve Collar, addressed the future of direct to handset solutions saying “clearly satellite access to mobile is a potential huge part of satellite going mainstream” which he sees as hugely important for the future of operators, and the industry as a whole. 

Intelsat’s new CEO, David Wajsgras, gave some positive updates on Intelsat post chapter 11 and confirmed that this is “the first time in over a decade that Intelsat has seen a growth profile” and is expected to see “growth this year compared to 2021”. 

Viasat Inc. CEO, Mark Dankberg, confirmed that Viasat 3 is still progressing well towards launch with the satellite close to being fully integrated and that the proposed Inmarsat acquisition is just waiting for regulatory approval, and they should know soon “whether it will close this calendar year or next”. 

And last, but certainly not least, Telesat CEO, Dan Goldberg, confirmed that their LEO offering, Lightspeed, will happen despite delays as “supply chain issues have impacted the delivery” of the platform and that confidence in the success of the platform is incredibly high within the business. 

It’s great to see so many developments coming from the traditional industry showing that, far from being left behind by the NewSpace industry, they’ve shown they are more than up to the challenge the future brings. Bring on day 3!

World Satellite Business Week – Paris

What a treat to be back in Paris for the World Satellite Business Week at the fabulous Westin Hotel! And even better to be invited as a media partner of EuroConsult.

This year has been a sellout event with over 1200 attendees from 50 countries, 95 sponsors and 230 speakers, making it the best attended show in it’s 25 year history.

We have already been treated to some fascinating talks on day one with a diverse range of topics from connecting the unconnected, the future of optical communications, what Comsat manufactures need to do to stay relevant and the important part that service providers still have to play in breaking down the digital divide.

One of the standout sessions of the day, especially given the recent announcement surrounding their conjoined future, was a discussion around the future of satellite connectivity by the CEOs from Eutelsat, Eva Berneke, and OneWeb, Neil Masterson. Eva described the proposed merger as “a natural step” and that “GEO and LEO will be a much stronger proposition” and Neil adding that the “market opportunity is significant” and that their technologies are “highly complimentary”. 

From a selfish perspective, it has also been great to see the issue of where the next generation of industry talent will come from, with hiring problems and a lack of talent being topics of interest across a few different panels. Chirag Parikh from the National Space Council asked the question of “How do we get more skilled people into the sector?”, a question that, given the fact it has been brought up in multiple discussions, has no easy answer it seems.

How did you get into the NewSpace industry – Scott Herman’s path into the NewSpace industry

In our most recent episode of The Tech That Connects Us, we had the delight of speaking to the CEO of Cognitive Space, Scott Herman. After starting his career in the National Security community, he made the decision to move into the commercial world.  

We found out how he got into the New Space industry, delved into his past careers and why he believes that the geospatial analytics area is overlooked. 

We’d like to go back to the beginning, how and why did you get into the NewSpace industry? 

I actually spent probably the first half of my career working in the remote sensing and geospatial analytics world, but primarily, kind of hidden in the national security community, what you might call the black world.  

So, I’ve been doing this for a long time. Since getting out of school I’ve been in this constantly repeating loop of build systems for either running satellites or exploiting the data coming from satellites, applying that to global monitoring and national security problems. Build a little, field a little, go out and support those systems, and then come back and do it all over again and build the next generation. So that’s been a pretty consistent pattern.  

After spending probably the first 15 years or so working in the national security community, I made the leap into the commercial world. But again, kind of looking back at the national security mission.  

So that’s when I joined GOI in the days of GOI and Digital Globe before they were merged together into what eventually became Maxar. I worked there for several years and then several of us kind of jumped and started a new company that was eventually acquired by spaceflight and became Sky. I was part of the Spaceflight industries umbrella, with the launch business, satellite remote sensing business with Black Sky and the assembly business with Leo Stella. So that was a lot of fun.  

I worked there for probably about eight years. Until right around the time of the SPAC the IPO with black sky. But I continued to really be interested in this problem of how to apply artificial intelligence to satellite operations. I had been through TechStars, advising a small company that was starting to really make some inroads into this particular problem and became part of their advisory board. They eventually invited me in to help lead the company to success, go through fundraising and help get the product built and everything else. So, I came on as the CEO of cognitive space a little over a year ago. 

You can catch the full episode here.

Every Wednesday we sit down with some of the biggest names in our industry, we dedicate our podcast to the stories of leaders in the technologies industries that bring us closer together. Follow the link here to see some of our latest episodes and don’t forget to subscribe.     

neuco’s Hot Companies to Watch in In-Space Economy

One of the most fascinating, fast-growing, and highest growth potential areas of the satellite & space sector is the in-space/on-orbit economy. We’ve broken this segment down into verticals with overlaps, that we see as already established but with so much more still to come. This is by no means an exhaustive list but here are some exciting players to watch.

Space Stations

Space infrastructure on this scale was once a thing of science fiction. Russia launched Salyut 1 in the early 70’s but the most widely known space station is the International Space Station, a modern marvel of engineering and international collaboration. With the next generation of space stations imminent, led by private companies, we are about to enter a new chapter and, before the end of the decade, space will look very different indeed!

Servicing

In-space/on-orbit servicing will drastically redefine how we operate in space. The servicing of satellites, including the refuelling and repairing of them, will vastly improve how well they can be maintained and how long they can be in service, and it doesn’t end there. Debris removal, transportation, and manufacturing & assembly (with its own section below) will all act as a platform and foundation that will allow incredible growth in space infrastructure, in turn benefitting Earth below and the progression of humanity.

Manufacturing & Assembly

On-orbit manufacturing and assembly capabilities will play a significant role in the future of space. Producing satellites and other assets directly in orbit will revolutionise what we will be capable of doing. The extraction of materials in space, the recycling of debris, 3D printing (which has been done on the ISS since 2014) and more, could all be game changers. In microgravity, the absence of gravity enables the production of a wide range of new materials, and even wine ages quicker!

Spaceflight

This will be the vertical that will truly highlight to society how far we have come and how far we can go, because there may be a chance to experience it yourself. As we continue to develop these technologies and drive down costs, perhaps one day you may find yourself among the stars, looking down on Earth and experiencing something the vast majority of humanity never in their wildest dreams thought they would experience.

Keep an eye out for more content and information surrounding some of the hottest space sectors coming soon!

Every Wednesday we sit down with some of the biggest names in our industry, we dedicate our podcast to the stories of leaders in the technologies industries that bring us closer together. Follow the link here to see some of our latest episodes and don’t forget to subscribe.     

Next Level Space Technology

In episode #68 of The Tech That Connects Us, we were excited to be joined by Steve Good, CCO of Ramon Space. He started his career at Hughes Network Systems before two stints at both Intelsat and contact EF data. He’s held a variety of executive roles in his career. 

He then moved to lead the strategic business development for TELUS Alenia Space before then, of course, joining him on space as their Chief Commercial Officer.

Steve’s had an illustrious career within the satellite industry spending over 25 years. So, we can quite rightly say that Steve is a true industry expert. 

We hope you enjoy this episode as much as we did recording it.

So, where are you headed next? Where’s the next mission?

The next mission is, certainly we go further than then folks have gone before.

We’ve already got closer to the sun than folks have gone. But, at the end of the day, we need to bring that home to Earth, and what are we learning in space that we could use to better the human condition. So, what we’re really focused on is, you know, the future of space.

And, you know, another thing is we’re launching spacecraft for lifecycles of five years, seven years, 10 years, 15 or 20 years. Therefore, if you look in your crystal ball of 15 years back, which would take us to 2007, I don’t think anybody could imagine what we’re doing in 2022. And that’s, that’s the exciting part about it. 

So, there’s a lot of fear, or there should be fear, with putting up a static constellation, a static satellite that’s unable to adapt to new applications, we can remove that fear as an industry. 

What is left for you to learn in the future education on the horizon?

We learn something every day. So, life is a learning mechanism. But personally, I enjoy the classroom, I enjoy what a university setting provides and represents, and I enjoy being in the classroom. 

And I know that puts me in a minority, but I do like learning new things and increasing my knowledge. So, a PhD, perhaps a JD, perhaps, or both? Who knows? But expanding the mind is really something that I focus on.

So, how have you approached diversity in the company?

We believe that great ideas can come from everywhere, and anywhere, and different viewpoints are essential. We actively are recruiting we’ve grown, we’ve doubled in size over the past six months. 

So, I think we’re at about 60 people we read about 30, this time last year. We’re actively recruiting for a number of roles. And we believe that great ideas come from everywhere, and we need to offer additional opportunities for all. 

I think that we are looking at the universities, we’re looking at different backgrounds to bring to the table. It’s an interesting dynamic here where we’re all able to voice our opinions, and we’re a startup, so we wear many hats. So bringing in new opinions, and actively pursuing folks that come from different backgrounds are very key for us. 

To listen to the full episode, click here.

Every Wednesday we sit down with some of the biggest names in our industry, we dedicate our podcast to the stories of leaders in the technologies industries that bring us closer together. Follow the link here to see some of our latest episodes and don’t forget to subscribe.     

The Consolidation Of The Space Industry  

In episode #63 of The Tech That Connects Us, we were lucky to be joined by Sebastian Asprella and Vojtech Holub, the CEO and CTO of ThinkOrbital. We wanted to learn about their take on consolidation in the space industry (and a few other interesting topics).

We touched on the technology behind ThinkOrbital, tried to learn whether they were ambitious or just crazy, and wanted to know roughly where the industry was headed as they explore new and attractive opportunities.

When will we see new consolidation in space?

The first area appears to be launch. We’re not saying we’re experts in this field, but we did talk to people who are. We analysed the market in depth regarding where we come in to see where that sets us apart. So, I would imagine that launch would probably be the first one.

I’m not sure if the market is oversaturated. But it’s interesting to see that there are still new startups or new companies coming into launch. And I would imagine unless they’re extremely differentiated, I don’t see how that’s a concern.

The second area that comes to mind is the mega IoT constellations. So many of them could be sustained, and there’s been so much capital going into them. Consolidation doesn’t necessarily mean that companies go out of business, but there may be some mergers and acquisitions along the way.

Vojtech, do you agree or have different opinions on that?

Launch may end up even worse than consolidation, in the sense that consolidation assumes that the larger, more successful companies will buy the smaller non-successful ones. Unfortunately, most of them will just go bankrupt and disappear. There will be just a few survivors of different sizes for the few markets.

In space, there is a need for orbital tags, and a lot of companies have seen that. These tags would allow you to change orbits, grab a satellite, move it, refuel it, etc. And this is a crucial capability that is desperately needed everywhere. But there are also a lot of companies that are working towards that. And I don’t know how many companies can be sustained this way. Maybe the national security interest of individual countries will come in and make them all work. I’m not sure. But it’s another thing that pops into my mind.

You can listen to the full episode here.

Every Wednesday we sit down with some of the biggest names in our industry, we dedicate our podcast to the stories of leaders in the technologies industries that bring us closer together. Follow the link here to see some of our latest episodes and don’t forget to subscribe.