Space Exploration Set To Gain Momentum: 3 Fund Picks

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The United States had emerged victorious in the space race when it landed the first man on the moon, way back in 1969. However, in the past 60 years, the industry has witnessed a sea change as large corporations in partnership with the national government have shown progress, be it satellite launches to handle 5G communications, fostering space tourism or building rocket components or sending supplies to the space station What was once imagined only in sci-fi movies is now widely feasible, courtesy of the millions of dollars invested every year in space transportation, exploration and more.

Following the initial competition to foray into space, technological hurdles had dampened man’s interest in leading an expedition to that mysterious zone. However, progress in propulsion technology, nanotechnology and AI restored the buzz of curiosity surrounding the space industry. Private aerospace companies like SpaceX creates a record by launching 26 space missions in 2020 as an endeavor to test flights for commercializing Earth’s lower orbital programs and delivering packages to the International Space Station (ISS). Virgin Galactic, a space tourism company, completed the first two successful glide flights with its SpaceShipTwo spacecraft.

Moreover, the industry has significant backing from the US government. President Joe Biden embraced two of Trump’s signature initiatives, namely the Artemis program, which is the National Aeronautics and Space Administration’s (NASA) effort to return astronauts to the Moon, and the sixth branch of the armed services, Space Force. The US space agency NASA aims to land the first woman on the Moon through its ambitious international spaceflight program Artemis by 2024. With the industry making a rapid progress, NASA sent astronauts to the ISS for the first time since 2011, which is a marked progress as this must have cost the country a fortune to send their astronauts to the ISS.

According to Morgan Stanley report, the global space industry could generate revenues in excess of $1.1 trillion in 2040, up from approximately $350 billion in 2018. Per a ResearchAndMarkets report, the industry is projected to witness a CAGR of 5.6% during the 2018-2026 forecast period.

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