How to invest in space: UBS boards on how to take advantage of the space economy



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The list of companies that embark on the space race is as long as the text at the beginning of a Star Wars movie.

Amazon recently confirmed to Business Insider that it plans to launch 3,236 satellites into orbit, transmitting high-speed broadband signals to regions that do not have access to the Internet. SpaceX also has huge plans. These companies and others believe that satellites can help billions of people access the Internet.

An badyst at UBS believes that the transfer of high-speed broadband from space remains a major cost and technology hurdle, but will dissipate over time. This makes satellite Internet technology the bulk of Carl Berrisford's prediction that "the space economy" will triple to about $ 1 trillion in 20 years.

He writes that in ten years' time, the cost of launching a satellite will only account for 10% of what it is today, thanks in part to improving reusable rockets. Meanwhile, technological improvements will reduce the latency – or the time it takes a signal to go from Earth to a satellite, and vice versa.

This will make satellite technology attractive to Internet providers, he wrote, and it will also affect other areas, including data centers and the Internet of Things.

This, combined with companies like space business tourism, including Jeff Bezos' Blue Origin and Richard Branson's Virgin Galactic, as well as other applications such as asteroid mining and space manufacturing, explain why he believes that the space economy will rapidly grow in value. $ 340 billion today.

For the moment, Mr. Berrisford said the best way to get to grips with the space industry was to take advantage of these recent advancements and invest in companies in the aerospace, transportation and aerospace industries. satellites and publicly traded communications. He expects that many of them will be made public in the years to come. Below you will find a list of some companies working in the satellite sector.

Note that while OneWeb and Planet Labs are private companies, Maxar Technologies, the parent company of DigitalGlobe and MacDonald Dettwiler, is listed on Nasdaq.

  • DigitalGlobe (Satellite Operator) – Has orbiting satellites that capture high resolution images of the Earth.
  • MacDonald Dettwiler & Associates (Satellite manufacturer) – Technology company working in the fields of communication and intelligence
  • OneWeb (Satellite Operator) – Communications Company Prepares to Launch 900 Internet Satellites
  • PlanetLabs (Satellite operator) – Satellite design to map the entire planet
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