The New Space Race: Harnessing the Opportunities of Agile Space

Session Overview

The space industry is embarking on a new era of competition and innovation, marked by the emergence of pioneering companies like SpaceX and Virgin Galactic. These new entrants have shaken up the traditional space industry, launching new sectors like space tourism and igniting a global space race among companies and nations. Leaders on this panel reflected on a decade of progress within the space industry and the opportunities it presents for life on Earth.

Key Session Insights

Ms. Jerriann Garcia, Program Director at Sandia National Laboratories, opened the panel by helping define the concept of the modern space race, a multifaceted contest involving a wide array of stakeholders — industry, academia, the military, and international partnerships. This broadened engagement has transformed the space race into a more dynamic, collaborative, competitive, and forward-looking endeavor, where traditional distinctions and players are being upended by new models and entrants.

Over the past decade, the advent of low-cost, reusable launch technologies has dramatically reduced barriers to entry, making it feasible to send highly capable, lightweight payloads into orbit at a fraction of the cost once required. Dr. Brad Clevenger, Vice President of Space Systems for Rocket Lab, noted that this development has opened space access to a far wider range of actors. With more players involved, the potential for new, creative solutions to the challenges of space exploration is greater than ever before. This democratization of space presents an exciting opportunity to build on the cooperative frameworks that Ms. Garcia discussed, as more stakeholders contribute to the development of a shared, sustainable space future.

As the cost of entry continues to fall, this shift is also having profound effects on strategic priorities, particularly within defense. The military, once limited by the high costs of space technology, is now leveraging this accessibility to reshape its approach, especially in the realm of military satellites. Col. Jeremy A. Raley, Director of the Space Vehicles Directorate at the Air Force Research Laboratory, highlighted a major operational pivot toward mass deployment in space. The prevailing logic is that volume confers strategic advantage — “In the military, mass is the principle by which we operate. Whoever has the most stuff usually prevails.” However, as Col. Raley discussed, while quantity is critical, the effectiveness of these systems increasingly relies on balancing scale with technological sophistication.

As the military adapts to the new realities of space access, the same technological advancements and lowered costs are enabling the commercial sector to explore new possibilities. While defense focuses on strategic advantage, the commercial sector is rapidly evolving into a key player in space innovation, driving new applications and industries.

In 2010, the space market was predominantly government-led, but today, commercial enterprises have surpassed government spending, contributing to exponential growth. As financial barriers continue to lower and participation expands, the space sector is rapidly transitioning to a commercially powered, innovation-rich ecosystem, further accelerating the pace of development.

This commercialization of space, with new players entering the field and expanding space access, is not only transforming the space industry but also bringing tangible benefits to Earth-based industries. Q Station Executive Director Randy Trask illustrated how small companies, now able to reach orbit more affordably, are pursuing unconventional activities that were previously out of reach. By providing on-orbit services and platforms, Q Station aims to enable a wide range of commercial enterprises to operate in space, from advanced research to manufacturing processes that take advantage of space’s unique environment. For example, microgravity offers distinct benefits for producing certain materials and pharmaceuticals, potentially leading to breakthroughs that could not occur on Earth. Mr. Trask explained that Q Station’s focus is not only on enabling these new industries but also on creating a sustainable, operational infrastructure in space, which allows businesses to scale their activities beyond Earth’s surface.

Mr. Trask pointed out that many space-related startups are developing technologies applicable to both space and terrestrial markets. Often, these companies begin by creating solutions for Earth-based needs, and then companies like Q-Station can connect them to demands in the space market. He provided examples such as space-based remote sensing for infrastructure monitoring, agricultural analytics, and climate change diagnostics. These space-based assets are not only providing new tools for industries on Earth but are also creating entirely new value chains that extend the reach of space technology into everyday business.

Despite these innovations benefiting industries and consumers alike, a significant gap still exists between the pace of technological development and public understanding of space's broader impact. Although the space economy is rapidly expanding, many still view it through a narrow lens, focusing primarily on civil exploration and government-driven initiatives. To bridge this gap, Mr. Trask called for a reframing of space as a multidimensional operational domain, akin to air, sea, and land, with vast commercial and strategic potential. He envisions a future where space infrastructure supports a variety of industries—from telecommunications and energy to manufacturing and logistics—each contributing to a broader, interconnected off-Earth economy. This shift in perspective, he argued, is essential for unlocking the full economic and strategic potential of space.

The evolution Mr. Trask describes is already underway, as evidenced by the growing involvement of non-traditional actors in space. New Space Nexus CEO Casey DeRaad highlighted how universities and commercial providers like Starlink are deploying large constellations of small satellites to low Earth orbit. These constellations are advancing research and delivering tangible services, such as streaming platforms like Netflix and expanded mobile communications, directly impacting the lives of consumers. According to Ms. DeRaad, these services represent a pivotal moment in which space infrastructure has moved from being an abstract concept to becoming an integral part of modern digital life.

Despite this progress, Ms. DeRaad stressed the continued importance of government support in helping these companies get off the ground. She highlighted the role of the Space Force in offering early-stage funding and the necessity of public-private partnerships. Venture capitalists, according to Ms. DeRaad, typically want to see early government contracts to mitigate investment risk. This catalytic government involvement remains crucial for the development of a successful and sustainable space economy ecosystem.

With space technology advancing rapidly and the sector evolving into a commercial powerhouse, New Mexico’s strategic infrastructure, research assets, and commercial partnerships are setting the stage for its growing prominence in the space economy. Mr. Gabe Mounce, Director of the Technology Engagement Office at Air Force Research Laboratory, noted that partnerships with entities like the U.S. Space Force have placed New Mexico at the center of the new space economy.

Collaborations are essential, but to sustain and expand this momentum, there is a pressing need to improve understanding of both the technological capabilities and financial structures required to support space ventures.In this context, initiatives such as incubators, programs that align commercial missions with government objectives, and the Hyperspace Challenge — a program launched by the Air Force Research Laboratory that connects government innovators with startups and universities to develop space-related technologies — are key to fostering the ecosystem that will help New Mexico stay competitive and innovative in the growing space sector.

Building on the state’s progress, Ms. DeRaad also noted that New Mexico has one of the largest sovereign wealth funds in the nation, signaling that the state has the financial capability to support its growing space industry.  Companies are also beginning to view New Mexico not only as a place to do business but as a place to stay, attracted by its robust space infrastructure. This shift marks a significant change as the state grows into its role as a key player in the space sector.

As New Mexico’s space economy continues to expand, it faces challenges, however, particularly in talent acquisition. Col. Raley highlighted that the state’s ability to attract and retain skilled workers is essential for sustained growth. He proposed the creation of an "education corridor" to draw students from neighboring states, underscoring that regional recruitment is critical for building a sustainable workforce.  

Equally important to New Mexico's growth in the space economy are its research institutions, particularly the U.S. DOE National Laboratories, including the Los Alamos National Laboratory (LANL) and Sandia National Laboratories. These labs play a pivotal role in advancing space research, yet their contributions often go underrecognized. Mr. Trask pointed out that space could be one of the largest portfolios at LANL. He argued New Mexico must embrace and celebrate these capabilities more visibly, suggesting that the state take inspiration from Houston, which has firmly established itself as a space hub.

By fully leveraging the expertise and resources of the U.S. DOE National Laboratories alongside its growing commercial sector, New Mexico is well-positioned to become a recognized leader in the space economy, provided it capitalizes on this unique strategic advantage.