Today’s space sector is at an inflection point, poised to capitalize on the tech sector’s gains from cloud computing and artificial intelligence. Just a decade ago, the space economy was dominated by large, school bus-sized satellites. These billion-dollar workhorses served military, intelligence, and civil agencies well for decades, with slow improvements made to their subsystems. Then, much like the tech tsunami that rendered mainframe computers obsolete in the ’80s and ’90s, the space industry experienced its own revolution.
Since then, the commercial space sector has exploded, with thousands of satellites launched every year—most no larger than a small desk, many the size of a shoebox. As next-generation space capabilities are increasingly procured from off-the-shelf technology solutions, with private capital driving most of the development, it’s hard to believe that the government was once initially resistant to such sweeping change. The Space Force, in particular the Space Development Agency (SDA), is fully embracing this digital revolution, and several new offices are contracting directly with commercial space data companies.
This is a remarkable shift, encouraging the creation of new commercial companies and generating jobs and tax revenue in place of dependence on government funding. It allows for critical space technology to advance at the same pace as Silicon Valley innovations, bolstering the U.S. as the world’s leading space economy in the same way it has dominated in consumer technologies.
Yet, a major challenge remains in reinventing the government’s planning and acquisition processes to keep up with the speed and flexibility of the commercial space sector. Holding the private sector to the centralized, statist methods of the past will not work, and change is necessary for the U.S. to remain competitive.
How the Pentagon and Congress will plan, fund, and field space programs to support the evolving requirements and rapid innovation needed by the Space Force is no easy task. Many have been grappling with the problem for years, and although SDA and other space offices have made significant strides, the outdated processes for space acquisitions—from Capitol Hill to the Pentagon’s E-Ring—often undermine progress. Policymakers are sincere in their desire for change, but they often lack the necessary understanding of the private sector’s dynamics.
What’s missing is a fundamental understanding of how private capital flows, how investment risk is managed, and how private companies—especially those in the space sector—operate. There is a pressing need for the Pentagon to build stronger partnerships with the financial sector, which rewards market-driven profitability and competitiveness, and in turn adopt a more agile approach to military space operations.
To address this, the U.S. Chamber of Commerce has announced the Miami Space Summit, a gathering of space industry leaders to discuss exactly these challenges. The inaugural event will bring together key stakeholders to engage in meaningful dialogue, hear priorities and frustrations on both sides, and brainstorm actionable solutions. According to John Neal, the Chamber’s director of space policy, this event aims to tackle the core issues head-on. “I’m excited to partner with the Small Sat Alliance to help lead this discussion,” says Neal. “We are convening leaders from government and industry with the financial sector to discuss what is needed to lay the foundation for our country’s space future.”
Notable speakers include Joanna Welsh, Citadel’s Chief Risk Officer, who manages hundreds of billions in assets and trillions of dollars in transactions each year, making her uniquely qualified to discuss capital risk in the space sector. She will be joined by General Mike Guetlein, the Vice Chief of Space Operations and the most senior space acquisition leader. Also speaking is Kirk Konert, managing partner at AE Industrial, a private equity firm that has made key investments in the space sector. Konert’s firm led the largest private equity deal of the modern space era, helping York Space Systems become a leader in small satellite manufacturing for the Space Force.
Konert is eager to share his experience at the summit: “Building solid companies founded on tried-and-true principles like profitability while laser-focused on customer needs is our creed. I look forward to sharing our stories of success and learning from others at the Miami Space Summit.”
The summit will also address the broader issue of collaboration between Wall Street and Main Street. From investors to engineers, there is widespread enthusiasm for a new administration that promises to tackle inefficiency and waste, potentially saving up to two trillion dollars. Many in the community believe that by fostering meaningful dialogue between industry leaders, policymakers, and financial stakeholders, events like the Miami Space Summit will help address the critical challenges of modernizing acquisition processes we so sorely need and bridging the knowledge gap between government and private enterprise.
The future of the U.S. space economy depends on how effectively we align the innovation of the private sector with the strategic needs of the U.S. government. Just as cloud computing and artificial intelligence reshaped the digital economy, agile, software-driven approaches and private-sector ingenuity are redefining the U.S. space economy.
Ultimately, the success of the U.S. space economy depends on the willingness of all involved to embrace change and rethink old processes that no longer work. Sometimes, success happens when sector leaders —the producers, the operators, the regulators, and the financiers— gather in one room and begin to listen as much they talk. As the space economy evolves, the partnerships that can form will be essential for ensuring that the next decade of growth matches the extraordinary momentum we see today.
