In the U.S. Space Force’s Commercial Space Strategy, released on April 8, the U.S. government explored buying commercial, foreign-made, off-the-shelf solutions rather than investing solely in developing and building specific military solutions in-house or using government contractors. This is a departure from approaches the U.S. has taken in the past and a guide for leadership to move in a new direction. It also tells us some important things about today’s space technology market and how the U.S. perceives the role other nations play in its space and defense strategy.
First, non-US commercial industries have reached a level of maturity and viability that makes foreign products at least as desirable as domestically produced ones, according to the US government. This wasn’t always the case, due to historical disparities in technological sophistication (and persistent perception gaps). In fact, at the Space Symposium in April, there was a real air of optimism among representatives of the US Space Command and the US military about the state of commercial space around the world. This is supported by available data. McKinsey & Company valued the space market at about $447 billion in 2023. This is up from $280 billion in 2010, and says it could grow to $1 trillion by 2030.
But there is also a growing desire among U.S. decision-makers for interoperability and scale with the country’s global partners. Looking abroad, especially across the Atlantic to Europe, the United States sees real opportunities for synergy, information and technology exchange, and building stronger alliances. As retired General Joe Votel noted in his speech when accepting the R. Lynn Rylander Award from the Defense Industrial Association in 2022, networks have been the key organizing principle behind many recent business successes, from Amazon to Uber. The same must now be achieved in the defense sector. As General Votel stated, we must move from “industry-based thinking” to “network thinking.” The National Space Industrial Strategy’s approach encourages the development of integrated defense space systems and systems of systems from the outset, integrating the national sovereign assets of U.S. allies into the space enterprise.
This is a big development. One of the main reasons is that the United States wants to remain competitive with China and Russia. China, in particular, has accelerated its space development in recent years. The United States urgently needs to take note of the progress of these two countries, and cutting bureaucracy and streamlining bureaucratic processes with commercial partners and foreign allies is one way to speed things up. Another reason is to make better use of taxpayer money. One way to increase spending efficiency is to outsource the development of off-the-shelf technologies to the private sector and allies. This gives the United States the time, resources, flexibility, and focus to put expertise in the areas that matter most, where alternatives from commercial partners and allies are not available.
There are challenges. For U.S. commercial partners and potential partners, one of the challenges is over-classification. In other words, protecting unclassified information harms commercial and alliance partners who want to provide solutions but don’t have access to them. Classification exists for a reason, and in times of geopolitical uncertainty, the U.S. government has ample incentive to insist on secrecy regarding technology developments. Still, careful consideration of the extent of classification can have significant benefits in the efficiency of spending taxpayer dollars.
In terms of challenges, this is a relatively small one in the overall picture of the new U.S. approach. The USSF commercial space strategy combines a progressive and pragmatic stance in advancing the nation’s space technology while remaining cautious about disclosing too much about the overall strategy at a time of rising global tensions. The real takeaway is that the U.S. looks to its allies to strengthen and advance its space program. And fortunately, allies are ready to help the U.S.: Europe is now home to a vibrant space ecosystem and leads the world in key areas of defense and aerospace, including photonics and Earth observation. By working closely with its allies, the U.S. can solidify its position as the world’s leading space superpower and, in so doing, build the resilience necessary to counter threats and maintain peace.
Jeff Huggins is President of Cailabs US, a company developing laser-based communications systems. Jeff is a former Naval Intelligence Officer and has held senior positions with several major defense companies, including Israel Aerospace Industries North America and Raytheon. Cailabs is driving growth in the US to meet the growing demand for laser communications from the defense sector.
