New Zealand’s ascent in the space industry

The concept of a New Zealand space industry was previously seen as a pipe dream, with the space and satellite industry dominated by the big players of the 20th century. This dream is slowly evolving with the New Zealand space industry, worth $1.69 billion in GDP in 2019, earmarked for future success. The Boston Consultancy Group recently released a report on what New Zealand will be known for in 2050 and the space and satellite sector was one of the five sectors listed for further exploration.

The establishment of the New Zealand Space Agency in 2016, as a response to increasing sector activity, marked a significant step by the government to support the burgeoning space and satellite sector. The Space Agency acts as a one-stop shop for space-related business, with the agency overseeing space policy, regulation, and sector development. One key advantage of this agency is that it is not burdened down with outdated policies and processes, as New Zealand has limited historical hangover from previous eras of space exploration. The sector got a further boost with the creation in 2023 of a Minister for Space who has responsibility for outer space and advanced aviation in New Zealand.

New Zealand is creating an attractive environment for entrepreneurs and businesses with a responsive overseeing agency. Stefan Powell, co-founder of Dawn Aerospace, praised the current regulatory environment and stated,“the government can be much more nimble here. It’s easy to go to the New Zealand Space Agency and have a conversation with them because it’s only a handful of people. You can know them all and have a good personal relationship with them.”

New Zealand has no equivalent to NASA, a state-funded behemoth that can send astronauts to the moon and put robots on Mars (amongst numerous other capabilities). That is not our lane, nor where we are economically competitive. Where the 27 New Zealand-based companies specialising in the space sector appear to excel and create competitive advantages is in high-value and innovative space technology that utilises our skilled workforce, geographic advantages, and our responsive regulatory framework. The emphasis on new technologies and private enterprise is labelled “New Space”; hence our space sector is driven by the New Space economy.

The most famous of all the New Zealand space companies is Rocket Lab, founded in 2006 by Peter Beck. Rocket Lab now is a multi-billion-dollar company with its headquarters in the USA. However, there are other companies that are making a splash. Dawn Aerospace is attracting business with its systems on eight operational spacecraft. Other companies are involved in different subsectors. For example, KiwiStar Optics is a global leader in precision optics, and Astrix Astronautics is a business based on inflatable deployable components for spacecraft of all sizes. We are building a diverse space sector.

Although dated, the 2019 Deloitte Report still highlights the sector’s important economic impact in New Zealand. The report states that the sector contributed NZ$1.69 billion in GDP, representing 0.27 percent of global space economy revenues. Furthermore, an estimated 12,000 full-time equivalent employees were supported by the space economy or related activities.

If New Zealand entrepreneurs, government, education institutions, and businesses continue to work together and support the space sector, there are major opportunities for economic growth. The government recently released the New Zealand Space and Advanced Aviation Strategy, which highlights plans to double the sector by 2030. This ambitious goal can only be realised with collaboration by players across all sectors as well as support from the government.

The space economy globally is forecasted to be worth over US$1.8 trillion by 2035 New Zealand has the opportunity to increase our proportion of that pie, bringing with it high-value employment, foreign investment, revenue, and high-value exports.