OUR SERVICE OFFERING FOR THE SPACE SECTOR - PWC FRANCE
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www.pwc.fr/space
Our service
offering for the
Space sector
Our expertise and service
offering dedicated to public
and private organisations
evolving in the Space sector
June 2018
Space as a holistic sector 2 Overview of the space sector 3 Segmentation of the value chain 4 A sector undergoing profound transformation 5 Our service offering 6 Our offer is based on five pillars tailored for each of the space domains 7 Our expertise in each space sector domain 8 Communications 10 Earth Observation 12 Navigation 14 Launchers 16 Space Situational Awareness 18 Space exploration 20 Cross-domain integrated applications 22 Contacts 24
Foreword
Growing demands for global connectivity and environmental
monitoring are challenges that can be met by appropriate exploitation
of space-based assets. Beyond the community of institutional and
private stakeholders directly involved in the sector, the wider space
economy includes a larger intermediate and end user base, with a
reach that extends to numerous industrial sectors.
Space is widely recognised as a highly Seizing these opportunities is
strategic sector for governments, indispensable to remaining competitive.
businesses and citizens because it is vital
The profound changes in the space sector
to a wide array of services and
also offer institutions and policy makers
applications across numerous economic
the chance to create the most appropriate
sectors.
conditions for market expansion, and to
Historically, existing and expected successfully develop technology-driven
benefits from investment in space have led national and regional economies.
to a steady demand for space assets.
With its dedicated Space Team, PwC offers
Several nations have responded by
tailored support to public and private
launching initiatives to pool resources and
entities in space policy, technology road-
develop capabilities in space system
Luigi Scatteia mapping, market assessment, strategy and
production, operation and exploitation,
PwC Space Practice economic impact assessment, to assist in
and in the last few decades, private
Leader their decision-making processes and
investors have also shown significant
approaches to developing space-related
interest in space sector domains that have
activities.
traditionally been driven by public
spending, such as space transportation The team leverages a cross-domain
and Earth observation. In order to sectorial expertise that is paramount
maximise the return on investment in when operating in a sector like Space,
space assets, the sector’s stakeholders characterised by a one-of-a-kind market
need to adapt to an environment that in and institutional dynamics and
recent years has experienced profound specificities.
change. At each level of the value chain,
This document describes how PwC’s
from space asset development to end-user
expertise and service offering addresses
exploitation, an understanding of the
the needs of the wider space community.
evolving landscape is pivotal to creating a
PwC is committed to providing effective
successful strategy.
support to organisations and companies
The sector’s transformation offers fresh across the entire space value chain, by
opportunities to well-established working closely with our clients to define
companies and new players, both from and implement appropriate and profitable
within and from outside the space sector. strategies that enable them to thrive in a
rapidly evolving sector.
The figures presented in this document are based on available data as of September 2016, and
are subject to change over time. The monetary values are shown in euros and, when
necessary, were converted based on the average annual exchange rate.
Space as a holistic
sector: From infrastructure
to services
2 | Our expertise and specialised service offering for the space sector
Overview of the space sector
Definition sectors such as natural resource
management, transport, health,
were of Earth observation
instruments, followed by technology
The space sector includes all public agriculture, education, meteorology, payloads (tests and demonstrations)
and private entities involved in the disaster management, insurance and and communication satellites.
development, manufacturing, banking. Beyond these economic Despite representing less than 5% of
operation and exploitation of space benefits, space is also an enabler of the launch events operated in 2016
systems and related infrastructure, social development and and 2017, cargo and crewed missions
from innovative research activities environmental protection. Space to the International Space Station
to the supply of products and applications have a strategic impact still accounted for around 30% of the
services to end users. It therefore on the sustainable development of total payload mass launched into
includes “pure” space players such as urban areas, preventing the spread space.
space agencies and space technology of pollution and soil erosion,
companies but also companies with optimising ground transportation,
measuring the effectiveness of
Space as an enabler
a different core expertise (IT,
electronics, media, etc.) that rely environmental policies, enabling The importance of the space sector is
directly on space infrastructure. communication in remote areas, not in the data or imagery
improving the safety of air transmitted through spacecraft, but
The space sector is traditionally
transportation and more. rather the industries and markets
divided into the following main
that they enable. Airlines, marine
domains:
• Communications Space activities transport companies, oil & gas or
mining operations, agriculture,
• Earth observation today environment, forestry and naturally
• Navigation
the military sector are all becoming
• Space transportation Space activity has experienced
increasingly reliant on space
• Space Situation Awareness and significant growth since 2012.
infrastructure. Data sets including
Tracking Orbital launches have increased by
satellite imagery and positioning
• Science and human spaceflight 22% during the period, reaching 95
signals provide valuable insights for
in 2017, operated mainly by Russia,
Depending on its purpose or applications as varied as agriculture,
the United States, China and Europe.
application, space infrastructure can transport, smart city planning and
The number of spacecraft launches
be operated by civil or military emergency response.
excluding nanosatellites (
Segmentation of the value chain
The transformation of the space landscape has pushed operators in the
sector to adopt a holistic approach, from space infrastructure down to end-
user products and services. The competitive environment has changed and
companies are adapting by expanding their footprint across the value chain
through a series of horizontal and vertical integrations.
2016 Figures of the space economy per stream – CAGR calculated between 2012 and 2016
€92 bn / $102 bn €28 bn / $31 bn €187 bn / $207 bn
Upstream (CAGR +1%) Midstream (CAGR +2%) Downstream (CAGR +2%)
Commercial satellite market Operators revenues Space services
€12 / $14 bn (CAGR -8 %) €19 / $21 bn (CAGR +2%) €95 / $105 bn (CAGR +3%)
Launch market Ground infra. and op. Consumer equipment
€5 / $5.5 bn (CAGR -7%) €9 / $10 bn (CAGR +1%) €92 / $102 bn (CAGR +2%)
Institutional budgets
€74 / $82 bn (CAGR +3%
The structure of the The role of NewSpace: a recent
space value chain institutional entities paradigm shift
The space value chain is traditionally Historically, the space sector has The last few years have been marked
composed of three activity streams: been almost exclusively driven by by the emergence of various private
institutional demand, mainly by initiatives with innovative business
“Upstream” includes activities that
space agency spending. In the 1990s, models that are targeting the entire
contribute to an operational space
the privatisation of satellite value chain from upstream to
system. It comprises the manufacture
telecommunication operators downstream. These NewSpace
of space infrastructure and related
initiated the raise of commercial players are characterised by their
subsystems and components, as well
space activities, and although in tendency to move away from the
as launch services, programme
2016 more than 80% of financial traditional approach of large, high
management and additional activities
investment still came from public performance spacecraft with strong
provided by space agencies.
institutions, since then the role of risk mitigation, manufactured,
“Midstream” includes activities private companies has expanded operated and exploited by different
related to satellite operation and the substantially. New private entities towards low-cost, easily
lease or sale of satellite capacity and investment sources are more and replaceable satellites, launched in
data. It also includes support more involved, and greater constellations. This vertically
activities, such as user equipment responsibility is transferred to the integrated approach enables these
manufacturing (i.e., dishes, industry (e.g., for launchers). players to focus on the downstream
satphones, etc.), network Nevertheless, institutional entities segment and data exploitation to
management, and associated services are expected to remain influential as create value.
that exploit space systems, such as they continue to represent a
These lower risk, shorter cycle
data storage, processing and substantial revenue source for
initiatives attract venture capital
dissemination. privately owned organisations.
funds and non-space companies,
“Downstream” includes activities which are investing heavily in the
related to space-infrastructure space sector and stimulating
exploitation and the provision of dynamic growth.
space-based products and services to
end users.
4 | Our expertise and specialised service offering for the space sector
A sector undergoing profound
transformation
The space sector is at the crossroads of significant governance, business
and technological change and is being challenged more than ever at every
level of the value chain and in every market. In this rapidly evolving
environment, the space sector is entering a period of profound transformation.
Governance
Transformation
of the space
sector
Technology Business
Governance Business Technology
International, European and Innovative NewSpace business The space sector is highly dependent
national space policies are set to models and projects are a source of on technological innovation but is also
undergo gradual but profound both enthusiasm and doubt in keen to preserve its technical heritage
change in the years to come, Europe, but most stakeholders and know-how. However, innovative
particularly in the delineation and believe that they represent an projects, such as mega‑constellations
distribution of public responsibilities opportunity that should not be or expendable Earth observation
and new areas of action, including underestimated. Historical players satellites, are pushing established
the expected adoption of are increasingly being challenged in industries to reconsider their high-
“application-driven” or “user- various markets by non‑traditional quality and low-risk engineering and
oriented” policies. Examples include competitors with innovative business production models and adopt new
standardisation, market regulation models and support from venture design-to‑cost and “good enough” risk
of space products and services, and capital funds and non‑space acceptance models. Such profound
cooperation frameworks. Public companies. Application-driven changes impact every level of an
institutions are already formulating markets are a growing segment for organisation, from programme
innovative programmes to achieve space industry players looking to management and quality systems to
new strategic objectives in the maximise the benefits of their production line modernisation and
sector. These programmes will shape investment by expanding their staff structure. Sectors that prioritise
future space markets. The growing customer base. Newly developed quality, such as the automotive and
involvement of regional and local terrestrial technologies, such as aeronautics industry, have already
players in space policies is in-flight connectivity, M2M started implementing new
increasingly accepted, particularly in networks, location-based services on manufacturing technologies (e.g.,
an effort to facilitate economic smartphones, or new Earth additive layer manufacturing) and
development. observation data applications, are moving towards Industry 4.0.
opening up promising new markets Stakeholders in the space sector are
for players in the space sector. closely monitoring this global trend
that will soon become a driver of
greater competitiveness in the
industry.
Our expertise and specialised service offering for the space sector | 5
Our service offering
We are part of a global team of We are able to leverage our
over 2,000 industry professionals Global Aerospace & Defence
focusing on the Aeronautics network in major space nations
Space & Defence sectors in Europe, the United States, the
Middle East and Asia
6 | Our expertise and specialised service offering for the space sector
Our offer is based on five pillars
tailored for each of the space domains
Strategy
With a 100-year legacy in strategy consulting, PwC Strategy& offers a unique “capabilities-driven strategy” approach to maximise its
clients’ chances of success. Whether we are supporting government agencies and public institutions, satellite operators, service providers
or industrial players, we provide our clients with confidence that their strategies, policies, investments, and organic capabilities will
coherently combine to achieve the desired results.
• Market characterisation (sizing, trends, competitive landscape, etc.) • Gap analyses and evaluation of market opportunities and barriers
• Evaluation of business cases and revenue projections • Assessment of policy options and institutional actions for market
• Definition and assessment of diversification strategies development
Socio-economic impact assessment
PwC has developed a comprehensive suite of methodologies to cover the whole spectrum of socio-economic impact
assessments. The approach, which has been used and validated on numerous occasions, can be applied to large-scale
public or private investments in infrastructure or space programmes. The assessments rely on commonly accepted
methodologies and taxonomies to produce results that can be used to support effective decision making and policy design.
• GDP impact assessments • Cost-Benefit Analyses (CBA)
• Catalytic and non-monetary impact assessments • Assessment of intangible societal and strategic impacts
Governance and Operations
We support institutional bodies, space agencies and private customers involved in major space programmes in the
analysis of governance, organisational structure and management of human capital. We look at different
organisational, operating, and outsourcing models to target governance and operational excellence.
• Analysis of national and regional space policies • Audit of space programmes and space agencies
• Identification of funding schemes to support the governance structures to maximise economic
development of space capabilities development
Regulatory
We have supported public bodies to analyse regulations impacting the space sector from upstream to downstream. Our
team includes legally trained consultants, supported for in-depth assessments by PwC Société d’Avocats, PwC France’s
legal services arm, which operates in the global network of PwC lawyers. This allows for timely relevant expertise that
is invaluable in cases requiring an understanding of legal challenges with a regional or global reach.
• Analysis of the impact of export regulations in satellites • Analysis of IPR, Personal Data Protection and Export
and launcher activities Control related to digital solutions and services derived
• Assessment of the warranty and liability safeguards of from space data
Earth Observation and Navigation data
Data analytics
Our team works closely with the PwC Advanced Solutions Development team and PwC Geo Analytics teams. Together, we
have supported companies in the technical evaluation and development of their digital services offering, capitalising on data
fusion from both space and non-space data. Our team of skilled data scientists can also capitalise on the global PwC network,
which counts more than 7,000 data & analytics experts.
• Analysis and identification of data-driven business models • Development of Proofs Of Concept with PwC software teams
derived from the exploitation of space data using scalable and open sources tools
• Design of new digital products and services based on space • Creation of products and econometric models based on
data via a customer-driven approach (use case-based) geospatial data
Our expertise and specialised service offering for the space sector | 7
8 | Our expertise and specialised service offering for the space sector
Our expertise in each
space sector domain
Our expertise and specialised service offering for the space sector | 9Satellites play a vital role
in global communications.
Although the market is
relatively established, the
sector is still subject to
changes in demand from
private and institutional
end users that require the
development and
application of new
business models and
technologies.
Communications
472 €119 bn 80%
Estimated number of ($126 bn) Share of revenues of the
satcom market
communication satellites
Estimated global market
in operation in 2017 generated downstream
for satcoms, from
in 2015
upstream to
downstream in 2016
Satcoms: the primary The importance Many promising
use for space assets of satellite markets still to be
Over the past 50 years, use of satellite communication for developed
communications (satcoms) has the global economy The development of human activity in
skyrocketed to become the most
both urban and rural areas is resulting
important space sector domain based Satcoms are critical to a wide range of
in a growing need for an Information
on various indicators, such as mass business, government and leisure
and Communication Technology (ICT)
launched into orbit or revenue activities. Compared to terrestrial
infrastructure. Satcoms are
generated by satcom players. In the infrastructure, satcoms provide an
increasingly identified as strategic
midstream, each of the top 3 fixed- unmatched level of availability,
infrastructure for the development of
satellite service (FSS) operators coverage, confidentiality and
communication networks, often
generated more than €1 billion (global resilience. The numerous applications
interfaced with terrestrial solutions. In
market of $107 billion) in revenue. derived from communication satellites
addition, new markets, such as M2M,
Services derived from provide public and private stakeholders
in‑flight connectivity or Ultra HD, are
telecommunication satellites, from with solutions for continuity, safety
expected to sustain the satcom market.
internet via satellite to television, are and accessibility.
among the most lucrative of all the
space sector domains.
10 | Our expertise and specialised service offering for the space sectorA market open to glo- Business and techno- However, big established players are
locked in intense competition to
bal competition logical challenges enhance their leadership at the expense
Historically, governments controlled the derived from a of their main competitors. Global
connectivity needs are the major driver
satellite telecommunication sector growing demand for for the growing demand for bandwidth,
through public intergovernmental
organisations. The sector was largely
bandwidth pushing operators to expand the
capacity of their satellites (e.g., by
privatised in North America and Europe The international business environment increasing the number of transponders)
and today, private operators control of the satellite telecommunication sector and to introduce technological
most of the satcom market. Although is relatively stable with a few leaders innovations (e.g., high throughput
local operators are still controlled by the holding the majority of market shares. satellites).
government in Asia, South America, the
Middle East and Africa, most of the
global market remains open, in contrast
to the captive domestic public markets
that normally exist in other segments of
the space sector.
Our specialised service offering
Strategy Socio-economic impact Governance & Operations satellite operators and
assessments capacity buyers
• Evaluation of business cases • Technical and economic
• Impact analyses of the use of
for innovative satellite • Assessments of the potential product portfolio
digital tools to support
operator go-to-market impact on the satcom performance evaluation and
mega-constellation series
strategies manufacturing industry of optimisation
production
• Evaluation of business cases new platforms, such as high • Deployment of design-to-
for satellite constellations altitude drones and balloons cost best practices
• Analyses of satcom operator • Impact assessments of • Implementation of “good-
aftermarket segment governmental satcom enough” engineering models
potential programmes • System engineering through
• Assessment of the external requirement and
growth potential of satellite configuration management
players resulting from • Definition of levers to foster
diversification strategies collaboration between
Selected credentials
Assessment of the satellite Business case and strategy India market entry
communication capacity evaluation for OEM vertical
PwC has supported both Tier-1 space
requirements of emergency integration to SATCOM services
systems suppliers andseeking to enter
services
PwC Strategy& conducted a detailed the Indian market. This involved the
PwC worked with the European market assessment to determine how a evaluation of numerous use cases,
Commission on its assessment of the globally leading satellite manufacturer competitive positioning, and playbooks
needs, design and implementation of the might enhance its position across the to inform entry strategies.
GOVSATCOM programme dedicated to value chain. We compared alternative
Middle East / North Africa new
satellite communications for emergency strategies and associated business cases
SATCOM operator
service organisations (maritime, police, to determine which would offer the
civil protection, humanitarian aid and greatest returns with lowest risk to the PwC Strategy& developed the green
external action services). Our existing manufacturing business. We field business case to start up a new
conclusions led to a strategy based on combined the firm’s strategy, operations, operator serving the Middle East/North
scenarios involving proprietary corporate finance and digital Africa region. We engaged with
satellites, satellite constellations, the capabilities to evaluate the full institutional and commercial
leasing of capacity or services, and implications of the opportunities, which stakeholders on market dynamics,
pooling between European countries. directly influenced the client’s corporate business strategy, operations, and
strategy decisions. technical details.
Our expertise and specialised service offering for the space sector | 11Earth observation (EO) is
a promising, fast-growing
field boosted by a wide
range of applications
across various economic
sectors, including preci-
sion farming, civil protec-
tion, insurance, natural
resource monitoring, oil
and gas exploration,
meteorology and urban
monitoring.
Earth observation
Growth potential of operated by Planet (formerly
PlanetLabs) or the ICEYE radar
Earth observation satellite constellation. Combined with
The EO data exploitation market (data
the growing and promising EO market,
these low infrastructure cost projects
237
sales and value-added services) Earth Observation
prompted private investment in space satellites in operation
benefits from the highest annual
ventures, especially in North America, in 2015
growth of all the space exploitation
from venture capital funds, private
markets, with an average rate above
equity firms or non-space angel
13%. The need for EO data in geo-
information products and the
investors. In addition, the tremendous
amount of data generated by EO
€7 bn
increasingly central role of Big Data
reinforce the development potential of
satellites stands as both a challenge for ($7.5 bn)
EO companies and an opportunity for Global Earth
commercial activities, making the
large ICT players, such as Google and Observation market
young EO market particularly
Amazon, which are fitted to tackle Big in 2015
promising for the years to come.
Data issues and willing to cross-
fertilise their IT capabilities. PwC
A market with
profound changes in
considers that stimulating private
initiatives on the European EO market, 15%
supporting more vertically integrated Average annual growth
business models and innovative models, developing user- rate of Earth
technology oriented data access platforms based Observation value
added services over
on new design-thinking approaches
The recent emergence of low-cost 2014-2019
and ensuring synergies between EO
small satellite technology enabled EO and ICT are crucial to maintaining a
companies to revolutionise their competitive and inspiring European
business models, based on near real- EO sector.
time low resolution images, such as
those provided by the Dove satellites
12 | Our expertise and specialised service offering for the space sectorGovernance trends Commercial off-the-shelf components
for satellite manufacturing and
Changes in demand
Institutional spending on EO miniaturisation are reducing satellite The demand for EO satellites is growing
programmes has increased over the costs. as markets for applications become
years and the deployment of Copernicus increasingly diversified. Furthermore,
assets that began in 2014 will intensify. Business trends demand from emerging economies is
However, national policy differences expanding rapidly. Satellite imagery
and a lack of standardisation between The emergence of private business services could however be challenged by
frameworks may prove to be an obstacle ventures and new sources of private drone‑based remote sensing offerings,
to the efficient use of EO services. financing, especially in the United which could be considered more suitable
States, should result in riskier projects in certain markets.
Technological trends being pursued. However, the significant
amount of EO data will prove
The use of microsatellite constellations challenging for Big Data and efficient
means that new business models can be data dissemination, as substantial
developed, while payload performances investment will be required to cover the
continue to improve. infrastructure costs.
Our specialised service offering
Strategy Socio-economic impact Governance & Operations Regulatory
assessments
• Analyses of EO downstream • Analyses of intermediate and • Analysis of warranty and
market technology, • GDP impact assessments of end-user requirements for liability safeguards
governance, business and institutional EO programmes platforms and data embedded in Earth
demand trends • Assessments of manipulation interfaces Observation programmes
• Benchmarking of existing socio‑economic benefits on • Diagnoses of data
platforms’ cloud computing the EO downstream and dissemination processes
capabilities and user end-user markets • Big Data capability
interfaces • Cost-Benefit Analyses (CBA) requirements and
• Gap analyses between of EO programmes opportunity analyses for EO
end‑user needs and EO downstream companies
market offerings
Selected credentials
PwC has a breadth of both private and 100 stakeholders, a large scale ex-ante The results should help the European
public sector experience in EO societal impact assessment of the Commission to develop its vision for the
technology across regions. In particular, programme, and a GDP impact of the Copernicus dissemination platform.
PwC has been regularly involved in spending in the Copernicus upstream.
supporting the European EO flagship Other governance and policy
programme, Copernicus, since the first Assessment of the Earth studies
satellite entered into service in 2014 observation market and
PwC was also entrusted with
with more than 10 dedicated characterisation of new business
performing the Copernicus programme
assignments. models
mid-term review, the assessments of the
Socio-economic impact PwC carried out a characterisation of governance schemes of the Copernicus
assessments of the Copernicus the EO market for a private investment entrusted entities, and an evaluation of
programme fund, with expected market evolution, open data policy impacts. Finally, our
industry dynamics, emerging business team carried out a feasibility assessment
PwC was mandated by the European
models and investment opportunities. on two potential new Copernicus
Commission to undertake several
products aimed at Ground Motion
targeted impact assessment on the EO
Review of the Big Data vision for Monitoring and Cultural Heritage
downstream and end-user markets,
Copernicus Monitoring.
including an ex-post downstream
assessment of the market impact of PwC defined an approach to facing Big
Copernicus along 8 selected value Data challenges and exploiting its
chains, in consultation with more than potential in the field of public EO data.
Our expertise and specialised service offering for the space sector | 134
GNSS constellations
providing global signals:
GPS, Glonass, Galileo and
Beidou-2 satellites are being
progressively deployed
82
Global and regional
navigation satellites in
operation in 2018
€ 94.8 bn
(~$110 bn)
Estimated global
navigation market
revenues in 2015
Navigation
Navigation satellites provide positioning and timing data to an
ever-expanding user base. Today, they represent one of the
most widely used space assets, through navigation and smart-
phone terminals or government applications.
A ubiquitous asset in manufacture of chipsets and devices,
as well as sales of services and
Glonass, the Chinese Beidou-2
(former Compass) and the European
our society, applications, which generated global Galileo, which is currently ramping
providing safety, market revenues estimated at €94.8 up to reach operational capability at
billion (~$110 billion) in 2015. the end of the decade.
performance and
Other satellite constellations like the
leisure capabilities Different navigation Japanese Quasi-Zenith Satellite
Today, navigation satellites are systems, improving System (QZSS) and the Indian
Regional Navigation Satellite System
omnipresent in our society. They
provide information about positions,
the existing (IRNSS) provide regional signals. In
routes, speed and timing, and are infrastructure addition, regional augmentation
used by an extremely wide range of systems, such as the WAAS in the
The first Global Navigation Satellite United States or EGNOS in Europe,
users in every economic sector, such
System (GNSS) available for civilian are improving the accuracy and
as precision farming, transport,
use was the US Global Positioning reliability of the signal: these are
banking systems, mobile
System (GPS), which is exploited by used for demanding applications
applications, emergency services,
most of the navigation signal (e.g., air transportation).
etc. Navigation signals are freely
applications commonly used today.
emitted by public entities, and their
exploitation drives significant Since then, other GNSS have been
economic activity including the deployed, such as the Russian
14 | Our expertise and specialised service offering for the space sectorThe GNSS market and Pushing for greater benefiting from the fast growing apps
market. GNSS-enabled businesses
the legal framework accuracy (device manufacturers and service
providers) are not expected to change
With the development of GNSS devices The development of multi‑constellation
greatly in the years to come.
and services, providers are exposed to receivers (compatible with multiple GNSS
liability risks in terms of privacy,
frequency management, or legal
signals) is expected to result in greater
uptake by end users and enhance
Changes in demand
responsibility for satellite guided performance in terms of accuracy and End-user demand is expected to grow in
vehicles. Regulations such as the eCall integrity. In addition, navigation signals the years to come, especially for high-
for European cars, combined with the will have to resist jamming and spoofing precision and indoor positioning.
availability of the Galileo Commercial threats. Augmented signals enable cross-market
Service (CS) high precision signal, should applications such as precision farming,
lead to greater adoption of navigation Capitalising on oil and gas exploration or fleet
services. existing markets management. Emerging economies
represent fast‑growing markets with
Location-Based Services (LBS) and resource management and weather
in-vehicle equipment are undergoing monitoring needs.
significant development, with LBS
Our specialised service offering
Strategy Socio-economic impact Governance & Operations Regulatory
assessments
• Market assessments of • Support for critical project • Assessments of regulatory
critical GNSS component • GDP impact assessments of and programme recovery impacts on GNSS markets
supply chains GNSS programmes • Organisational and • Impact of budget changes on
• Assessments of market • Impact assessments of risks operational efficiency a GNSS programme
opportunities for regional associated with signal evaluation and optimisation
augmentation system spamming and spoofing • System life-cycle
deployment • Socio-economic impact of assessments and
• Assessments of EU navigation activities management
high‑precision signal • System architecting
exploitation business models
Selected credentials
System prime for second generation recognised that its own GPS-enabled analyses including a technological analysis
Galileo satellites navigation systems may be at risk for and a market assessment to provide
disruption. PwC Strategy& evaluated the information for a risk analysis, a GPS case
With the implementation of the Galileo
gamut of current and projected changes to study with US experts, and a gap
Second Generation in 2021 in sight, PwC
future navigation technologies and their assessment for the creation of a fully
identified a set of possible prime
potential to disrupt our client’s technology, European supply chain.
management options for the development
allowing our client to begin positioning
and procurement phases. The
itself accordingly. Market entry for the Middle East/
recommendations were based on a
North Africa
strengths & weaknesses analysis,
Market assessment of strategic
development of implementation options, PwC assisted a satellite company in its
GNSS components
establishment of roadmaps, and goals to deploy a satcom and navigation
estimation of implementation and Given the critical role played by Atomic system covering the Middle East and North
transition costs. Frequency Standards (AFS) in GNSS, PwC Africa. We evaluated market conditions
was mandated by the European and technical and procurement
Evaluation of future GPS disruption
Commission to provide policy action requirements.
for US terminal/system
recommendations to reduce atomic clock
manufacturer
supply chain risks and implement double
As commercial and military navigation is sourcing for critical Galileo AFS
changing at such a fast pace, our client components. PwC conducted several
Our expertise and specialised service offering for the space sector | 15Spacefaring nations sup-
port their domestic launch
sector to guarantee inde-
pendent access to space. In
an increasingly competitive
global market, spacefaring
nations need to adapt the
economic model of their
launcher industry in order
to remain competitive.
Launchers
Strategic assets for Growing competition Number of launch events for
major spacefaring nations
spacefaring nations on the open launch between 2011 and 2017
Independent access to space not only market
depends on being autonomous in
Competition in the launch sector has
terms of technology and infrastructure
traditionally been between fully or
(i.e., the industrial base and
partially state-owned industries. As
spaceports). With new market entrants
the delivery of certain payloads is 187 Russia
increasing competition on launch
important to the national security of
costs, independent access to space is
launching countries, a significant part
now also dependent on the economic
of launch services is not open to
sustainability of the launch sector.
private companies. On the open
New industrial setups and practices, as market, newly created private
companies and non-historical
144 USA
well as modularity or innovative
technologies, such as micro-launchers spacefaring nations have been
and reusable rockets, will drive the disrupting the established norms. As a
competitiveness of the launch sector. result of the increasing competition,
spacefaring nations have promoted 118 China
their domestic launch systems through
dedicated policies and measures, and
also pushed their national companies
to improve or develop new launch 69 Europe
vehicles.
€8 bn
($8.6 bn)
Global launch services
market in 2017
16 | Our expertise and specialised service offering for the space sectorInnovation as a strate- innovations, such as sharing the risks of
satellite launches with operators, are
expected to face stable or declining
government financing for flagship space
gic advantage also being reviewed by launch programmes. As a consequence, launch
companies. companies will have to evolve and
Launcher integrators and launch service
examine new markets. Historical
providers are aiming at expanding their
scope of activities through innovation Launch companies launcher manufacturers and their
associated service providers are
and vertical and horizontal integration. need to increase their considering new kinds of services, such
Technological innovations, such as
partial or full launcher reusability, customer base as using micro-launchers for the flexible
delivery of small satellites deployed as
methane propulsion or additive layer
Despite being subsidised by part of large satellite constellation
manufacturing, are expected to bring a
governments due to its strategic programmes.
strategic advantage on the launch
importance, the launch sector is
market. In addition, business model
Our specialised service offering
Strategy Socio-economic impact Governance & Operations • Elaboration of an integrated
assessments supply chain interfacing with
• Revenue projections of • Analysis of the governance
external suppliers
global competitors • Impact assessments of new between public and private
• Deployment support for
• Customer surveys on LSP satellites players on the actors to maximize
«digital twin» approaches to
selection factors launch services market competitiveness of launcher
provide real-time monitoring
• Analysis of the market • Scenario analyses of the operations
of production assets and
potential of micro-launchers market impact of reusable • Definition of levers to foster
launch infrastructure
• Analysis of diversification launchers collaboration between
strategies for launch vehicle scientific and industrial
manufacturers communities
• Analyses of investor
satisfaction in scientific and
human spaceflight
programmes
Selected credentials
Benchmarking of the major space Socio-economic impact Global launch market forecast for
nations’ launch capabilities and assessment of Ariane5 and Vega European rocket propellant
policies programmes provider and space hardware
manufacturer
PwC was mandated by the European PwC assessed the GDP impact of
Commission to perform benchmarking European Space Agency investments in Our team assisted a large rocket
on the policies of major spacefaring Ariane5 and Vega launch activities. propellant provider in identifying
nations and their impact on their launch Social and non-quantifiable benefits emerging markets and opportunities for
capabilities, their industrial landscape, associated with the programmes were the development of their business
and national and global launch markets. extrapolated using in-depth analyses of worldwide including launch sand test
The analysis included an assessment of the launcher supply chains, and the sites. PwC also identified potential
the launch market and a high-level European launch operation capabilities. opportunities for the development of
forecast using identified trends and launch vehicle sub systems.
their impact on supply and demand. An Market adjacency strategy for
analysis of the governance and cost leading US launch system
structures of global launch systems was manufacturers and launch
also performed. Using our results, we providers
were able to provide the European
PwC Strategy& has supported the full
Commission with strategic
value chain of the launch industry, from
recommendations for the definition of
inorganic strategies in rocket
the European launcher space strategy.
components to strategic positioning for
Those recommendations were later
propulsion and cost takeout for launch
assessed through a socio-economic
services.
impact assessment.
Our expertise and specialised service offering for the space sector | 1718,300
Estimated number of debris
larger than 10cm orbiting in
Low Earth Orbit. These debris
can cause critical damage to
any kind of spacecraft.
5
Number of Member States
(FR, DE, ES, UK, IT)
composing the European
Union SST Consortium which
pools national surveillance
and tracking capabilities.
$1.6 bn
(€1.3 bn)
Estimated cost of the American
Space Fence surveillance
system operational in 2019
and capable of tracking objects
of 1cm in LEO regime.
Space Situational Awareness
Space Situational Awareness (SSA) refers to the capability of
detecting and tracking man-made and natural threats, predic-
ting and assessing the risks involved, and providing services
enabling the implementation of appropriate mitigation mea-
sures aiming at protecting space and ground assets.
A threefold activity ionosphere, and neutral atmosphere.
Near Earth Objects (NEO) activities
channelled into providing essential
services, such as conjunction
The use of space has helped enhance have the purpose of observing, assessment warnings, re‑entry
the global economy, provide social cataloguing and anticipating warnings and fragmentation
benefits, support environmental changes in natural objects in the analysis in the case of SST, which is
protection activities and ensure solar system that might cross paths utilised mainly by satellite operators
strategic sovereignty. Therefore, with Earth. and other civil protection and
many sectors and activities rely on industry users. Even though SSA
the protection of space assets against An international assets are owned and operated at
national level, international
threats such as man-made space
objects, space weather events and network of cooperation reinforces the delivery
near‑Earth objects. To mitigate these capabilities of reliable and timely SSA services.
threats, three solutions have been As such, the EU and its Member
instigated through sub-programmes. SSA architecture involves a set of States are developing a network of
Space Surveillance and Tracking nationally owned sensors, such as SST assets aiming to enhance
(SST) is the monitoring, cataloguing radars, telescopes and laser stations European SST capabilities and
and analysis of changes in space as well as space-based assets in the contribute at a global level to the
objects. Space Weather (SWE) case of the US. These are used to protection of space assets. The
activities encompass the study and detect and track space objects, solar network is completed by strong
analysis of the activities of the Sun events and NEOs, and provide key cooperation with the United States,
and its effects on solar wind, as well data to SSA data centres, where it is which provides a substantial volume
as Earth’s magnetosphere, analysed by specialists. The data is of SST data.
18 | Our expertise and specialised service offering for the space sectorIncreased need for Strategic importance Emergence of a
observation capabilities of SSA activities commercial market
Even though best practices aiming at The purpose of SST sensors is to observe It appears that several private entities
limiting the creation of additional space and track all types of space objects have developed their own network of
debris are encouraged among the global orbiting around Earth. As such, SST capabilities to provide SST services.
space community, the debris population capabilities play a dual role by tracking However, the security and defense
is expected to increase due to an passive threats such as debris and by nature of space surveillance is a
upsurge of space activities in the coming observing operated space objects that persistent concern and prevents private
years with the potential deployment of can act in an aggressive or unfriendly entities from entirely leading SST
mega-constellations primarily instigated manner. Furthermore, in order to limit activities without the support,
by commercial players who benefit from the spread of debris, the regulation partnership and cooperation of public
cheaper and simplified access to space measures must be reinforced and their players. A sound development of future
solutions. This trend testifies to the fact effective application must be controlled SST capabilities addressing space traffic
that traditional barriers to entry, which and verified. In that sense, SST sensors management issues must be based on a
are specific to the space sector, are being enable better knowledge of the nature relevant ecosystem and governance
diminished, opening the sector to new and origin of space debris and can be structure, ensuring service precision
entrants which are not necessarily used as a tool to support the and efficiency, international cooperation
aware and sensitive to debris release enforcement of mitigation measures. and a thorough data policy.
mitigation best practices.
Our specialised service offering
Strategy Socio-economic impact Governance & Operations Regulatory
assessments
• Assessments of market • Support to the design and • Support to the definition of
opportunities for the • Identification and characterisation of potential data policy linked to the use
deployment of Surveillance assessment of impacts programme governance space surveillance
and Tracking solutions resulting from the evolution structures information
• Forecast of changes in space of the European and global • Evaluation of organisational
traffic SSA landscape and operational efficiency
• Revenue projection for • Assessment of costs and • System architecting
commercial use surveillance benefits implied by the
and tracking radar systems implementation of a Space
Situational Awareness
programme
Selected credentials
Ex-ante cost benefit analysis of the identification and understanding of key designed to (i) evaluate the state of play in
ESA SSA programme strategic aspects to take into consideration SSA at a global level, (ii) identify the full
for the evolution of the SSA programme. scope of impacts and benefits resulting
The PwC space team has exhaustively
from the set of potential development
assessed the impacts and benefits linked to Study on the impacts of the EU space
options at EU-programme level taken into
the three areas of the European Space surveillance and tracking actions in
account in the definition of the 2021-2027
Agency (ESA) Space Situational the Space Strategy for Europe
Multi-Annual Financial Framework and
Awareness programme: Space Weather,
In line with the focus of the Space Strategy (iii) provide a robust and clear
Near Earth Objects and Space Surveillance
for Europe, PwC has provided the comparative analysis of these options.
tracking. Through a cost-benefit analysis
European Commission with a study
approach, the impacts and threats of a
supporting the preparation of the decision-
scenario in which no action is taken in the
making process on the future of SSA
field of SSA were quantified and analysed.
activities at EU level. The study was
The results of this analysis led to the
Our expertise and specialised service offering for the space sector | 19Human presence in space
was made possible by
extraordinary
technological and
scientific advances:
material and physical
science, propulsion, and
much more.
Space exploration
20 €100 bn €3 bn
Number of international ($107 bn) ($3.2 bn)
partners contributing to
Cost of the International Global science spacecraft
the James Webb
Space Station including market value in 2015 (includes
Telescope
development, assembly and satellites, interplanetary probes
running costs over 10 years and resupply vehicles)
Science in space and the James Webb Telescope, designed to
replace Hubble, involves 20 countries.
Privatisation of the ISS
international First launched into orbit in the late
collaboration Suborbital flights 2000s, five leading space agencies
NASA, ROSCOSMOS, JAXA, ESA and
Space exploration beyond Earth’s orbit, Suborbital flights are expected to travel CSA have invested more than €100bn in
including research into solar system at an altitude of around 100 km above the ISS. Serving as a microgravity
formation and the search for Earth-like sea level (Karman line). Though laboratory, the ISS has been the venue
planets and exoplanets, leads to a several private companies such as for experiments in biology, physics and
better understanding of how our Virgin Galactic (VSS) or Blue Origin astronomy. However, the private sector
universe was formed and of (New Shepard capsule) are currently is gradually taking over the ownership
fundamental scientific principles. testing suborbital flight vehicles, no and managing role of the station,
National or regional initiatives like the inhabited flights (apart from SpaceShip previously the domain of space agencies.
Curiosity Rover or the European 1, winner of the Ansari Prize in 2004) Certain activities have already been
Extremely Large Telescope have have yet been made. This technology outsourced and new commercial
already emerged. However, looks promising, both to enable activities are emerging: inflatable space
international collaboration is scientific experiments in microgravity habitats (Bigelow), deployment of
increasingly indispensable to sustain and for space tourism. Legislative cubesats (NanoRacks), hosting of
scientific programmes, for changes are currently being made in external payloads (Bartholomeo), space
technological and economic reasons: order to ensure the seamless manufacturing (Made in Space), etc. As
ESA partnered with NASA for Jason introduction of these new methods. the ISS is expected to retire by 2024-
and with ROSCOMOS for ExoMars; the 2028, the opportunities for private
US Orion spacecraft uses a service players to invest in this project are
module from the European ATV; and expanding.
20 | Our expertise and specialised service offering for the space sectorGradual involvement The Moon as a Use of Space resources
of commercial players gateway for Deep The development of exploration activities
and PPP Space exploration will require more and more equipment to
be transported, with strong constraints
Exploration missions and space outpost The global space exploration roadmap on mission feasibility in terms of both
maintenance are very expensive, and shared by worldwide space agencies engineering and cost. The use of in-situ
space agencies alone struggle to finance all envisions ambitious missions to the Moon resources (volatiles and solids) for
their scientific programmes. Commercial and Mars as the next steps. The Earth’s propellant and infrastructure
players can thus be valuable partners to gravity well raises strong space manufacturing will be key to the success
share investments and risks. Current mechanics barriers, making these of this endeavour, with the first step
potential opportunities for these types of missions extremely expensive and being the enhancement of our knowledge
synergies include the development of challenging. The Lunar Orbit Platform of the elements available on the Moon
commercial space habitats under NASA’s Gateway, often presented as the “next and near-Earth asteroids, followed by the
NextSTEP programme, the construction of ISS”, would allow the agencies to development of the necessary mining
infrastructure in microgravity, overcome this challenge. In addition to and processing technologies.
partnerships to be the first customers of being a science driver, it represents a new
commercial missions and, more generally, opportunity for global cooperation on an
the allocation of competitive grants for the endeavour that will benefit all
industry to develop equipment. humankind.
Our specialised service offering
Strategy Socio-economic impact Governance & Operations Regulatory
assessments
• Business case assessment • Analyses of investor • Analysis of the legal
and revenue projection for • Assessment of market satisfaction in human framework for space mining
commercial exploitation of spillovers and technology spaceflight programmes
space stations spin-offs from ISRU • Requirement and
• Gap analysis and development configuration management
identification of market • Impact assessment for Moon for multi-agency exploration
barriers for ISRU value exploration programme and programmes
chains Global Exploration Roadmap • Definition of roadmap for
• Definition of technology additive manufacturing in
roadmaps for future space micro and partial gravity
exploration missions environments
Selected credentials
Study on potential future markets Socio-economic review of ESA’s Ex-ante socio-economic assessment
and value chains of Space Resource participation in the ISS of ESA’s new partnership proposals
Utilisation (SRU) programme for space exploration
This study was undertaken to identify On behalf of ESA, PwC analysed the In the context of its position as a business
potential future markets and value impact of ESA’s investment in the ISS and partner to select private sector initiatives
chains associated with the exploitation of the possible impacts of disengagement. A in the field of space exploration, ESA
space resources. We examined the main large-scale economic impact assessment asked PwC to assess partnership
challenges and gaps relating to was performed using ESA’s data. Using proposals covering a wide range of topics
knowledge of resources, sizing of the data derived from this assessment, including use of the ISS, exploitation of
demand, mission architectures and costs, we then created an economic model to LEO and lunar exploration. We began by
as well as the relevant technologies. Our produce GDP multipliers. We also assessing the expected economic impact,
analysis covered each stage of the value conducted an assessment of the catalytic to provide a high level review of the
chain, from prospection to mining, impacts and wider benefits for Member proposed business plans, and continued
processing and manufacturing, with a States, with different categories by evaluating major components used in
timeframe extending up to 2040. It including space technology, fundamental negotiations (business model,
provided the Government of Luxembourg and applied research, international financials). PwC also provided an
with an exhaustive picture of the areas cooperation and inspiration. ex-ante socio-economic impact
that could benefit from public support assessment addressing wider impacts.
and a quantification of the associated
socio-economic benefits.
Our expertise and specialised service offering for the space sector | 21You can also read
