Space Revolution

Jesse Nacht

May 02, 2024

The constant demand for broadband internet access is increasingly being met by innovation, with the promise to deliver high-speed connectivity to the most remote corners of the planet. Satellite internet constellations, which operate in low Earth orbit (LEO), are at the forefront of this technological leap, offering reduced latency and more reliable service relative to traditional geostationary satellites. Whereas traditional geostationary satellites orbit 22,000 miles from Earth with a stream latency of 700ms, low Earth orbit satellites are positioned at around 300 miles with a latency of just 40ms. This technological advancement not only enhances connectivity but also has the capability to drive economic growth on both a local and global level by opening new markets and creating high-tech job opportunities.

Public companies like Iridium, Rocket Labs, Boeing, and Lockheed Martin stand out as key players in the industry, yet the most potentially valuable among them remains privately held. As of December 2023, during an ongoing secondary share sale, SpaceX’s valuation soared to USD 180 billion¹. This valuation places it above the market value of leading U.S. defense contractors and telecommunications firms. To date, SpaceX has launched over 5,000 satellites and has amassed a subscriber base of more than two million, underlining its expansive and revolutionary operations. As the company continues to drive revenue while reducing costs through the use of reusable rocket technology, we may see an IPO in the upcoming years. Both metaphorically and literally, the company’s ambitions are stratospheric, but only time will tell if the valuation is too.

The MVIS^® Global Space Industry ESG Total Return Net Index (MVSPCTR) tracks the performance of the largest and most liquid companies in the global space industry. The index is up 10.85% over the past 5 years and down 11.21% YTD as of April 26, 2024. In general, companies that generate a majority of their revenue from products and services related to space exploration, rockets, and propulsion systems, satellite equipment and communications solutions, or other satellite equipment-related services are included in the universe.