Space, a long-term dynamic

Inspired by major technological advances, the space theme continues to experience rapid development.

In a difficult stock market environment where the S&P 500 experienced its worst first half since 1970, hit by galloping inflation that forced the US Federal Reserve to raise its key rate at a historically high pace, the aerospace sector continued to demonstrate its quality and speed. . Developments Russia’s invasion of Ukraine highlights the strategic importance and utility of real-time spatial data. Driven by technological leaps, space, and space data in particular, is experiencing rapid growth.

Spatial data utility

Satellite images are crucial for obtaining reliable, accurate and objective information, monitoring climate change or detecting changes in activity on Earth. Support of space technology with real-time imagery, detection of Russian missiles, access to an Internet connection thanks to Starlink, monitoring of summer wildfires are all examples that illustrate the added value of space data and demonstrate its importance. Creating a new space ecosystem dedicated to improving life on Earth from space. A booming business segment. MAXAR Technologies is a satellite manufacturer1Which significantly provided the world with valuable picture on the situation in Ukraine, thus recording sustained revenue growth in Earth Intelligence segment and expansion of its EBITDA margin for Earth Intelligence and Space Infrastructure segment.

Aerospace companies benefit from significant visibility into their activities, thanks to well-filled order books and large-scale service contracts.

The number of projects is increasing. Space data provider SPIRE has won a space weather data pilot project from the National Oceanographic and Oceanic Administration (NOAA). The American company will provide real-time data for NOAA’s space weather forecasting models to measure ionospheric conditions, which affect activities such as aviation, satellite operations, navigation or communications.

For its part, NASA has selected SpaceX to launch the Nancy Grace Roman Space Telescope from its Falcon Heavy rocket in 2026. A deal worth $255 million. This telescope will allow research in cosmology, exoplanets and general astrophysics. Government contracts in space monitoring should continue to grow steadily and support the growth of the sector. According to a 2022 Euroconsult study, the Earth observation satellite market could grow by +16% by 2030.

Long term visibility

New contracts from US government agencies are injecting huge capital into the space economy Aerospace companies thus benefit from significant visibility of their activities, thanks to well-filled order books and large-scale service contracts.

Blacksky, which grew by +29%2 In the second quarter of 2022 in Euro, along with MAXAR Technologies and PLANET, one of the winners of three awards awarded by the US National Reconnaissance Office (NRO). Virginia Group won a contract to support the SMART program (Space-based Machine Automated Recognition Techniques) aimed at automating quantitative analysis of spatial images. The company, which oversees the development of machine learning algorithms to automatically recognize infrastructure – stadiums, campuses, dams, airports – could thus record a turnover of one billion dollars in 10 years. This forecast reinforces our view that next-generation companies will continue to gain market share in a growing industry.

Space continues to experience rapid development thanks to major technological advances in 3D printing, satellite manufacturing, new generation rockets and the use of artificial intelligence. Rocket Lab, whose subsidiary SolAero will provide solar power for Space Force satellites, launched a first satellite in 2025, completing its first lunar mission with the launch of the Capstone satellite (NASA) into the future orbit of the lunar space station. Station, Lunar Gateway. Rocket Lab, in our opinion, should be a major service provider for access to space, especially with the imminent arrival of its new reusable neutron rocket. Enough to fuel the growth and potential of themes whose horizons haven’t finished unfolding.

1 Quoted values ​​are given by way of example. Their presence in the portfolio is not guaranteed.
2 Past results or past performance of the Company’s share price are not indicative of future results or performance which may not be constant over time.

Leave a Comment