NewSpace vs Old Space: A Changing of the Guard in the Global Space Industry
Since the 50’s, the space industry has followed a predictable structure – few actors, large budgets, slow development cycles and heavy dependence on government programs. This traditional model, now widely described as Old Space, defined the First Space Age, reaching its pinnacle with achievements such as the Apollo missions, the Space Shuttle program, the construction of the International Space Station and even the recent Artemis Missions to return to the Moon.
Today, however, the sector is undergoing one of the most significant structural changes since the dawn of the space age. The rise of the next generation, New Space – a movement driven by private companies, venture capital, rapid innovation, and commercial opportunity. The dreamers are rewriting the rules with an aim to democratise space.
Although the dividing line between the two is not always clear, understanding the differences explains how the space economy has surged beyond $630 billion in 2023 and is projected to exceed $1 trillion by 2030.
What is “Old Space”?
Old Space is the legacy model of space exploration and systems development. Often showcased in many Hollywood movies like Hidden Figures and Apollo 13. It is characterised by government agencies working with established aerospace contractors such as Boeing and Lockheed Martin to assist national space agencies such as NASA and ESA meet their end goals.
These entities delivered enormous scientific and geopolitical achievements. Major programs – such as space shuttles, deep-space probes and national security satellites were the central pillars of Old Space activities.
Defined by key attributes, these missions were normally driven by government funding, as at the time, only a national budget could allow missions to be successful. The high costs and long timelines of the development cycles had to negotiate rigid regulatory frameworks and risk-averse decision makers.
Risk is a good thing, especially with the missions that involved crewed space flight, which is why we still have programs such as Artemis pushing Humankind’s return to the moon and serving as the backbone of space exploration. Though over the last decade or so, we have started to see a shift in the programs, a movement towards allowing private companies to help develop and supply new technologies.
Enter New Space
New Space, alternatively known as commercial space or entrepreneurial space, is a philosophy and movement driven by private sector innovation, faster development cycles and market-oriented business models. These companies range from the large well-known disruptors such as SpaceX and Blue Origin to small, agile start-ups such as Planet Lab and Iceye.
New Space emphasises “faster, better, cheaper” access to orbit and promotes decentralisation of services often only delivered by government agencies.
With private investors and venture capital funding now focusing on the disruptive technologies. We have seen an increase in funding to companies with rapid innovation cycles, which have delivered reusable rockets, small satellite constellations and agile engineering techniques not available decades ago. All of these combined have led companies to pursue business opportunities from earth imaging to small launch to fill gaps left by previous government-defined programs. The attitude of high risk and high reward has allowed for the biggest jump in space technologies in the last 50 years.
The real momentum change is the rapid growth of New Space companies, which have expanded their share of the space economy at an unprecedented rate. The Global space sector employment today is growing faster than the broader U.S. private sector, and private investment has reached record highs of $9.1 billion in 2024.
Falling launch costs alongside advances in automation and material science have opened the door for private companies to enter the sector, as seen by the explosion of the small satellite market. With a focus on AI and in-space manufacturing, this is likely to maintain its speed of progression.
New Space has benefited from NASA’s choice to move away from operating its own shuttle fleet post 2011, and increasing reliance on the commercial providers for ISS cargo and crew transport. This all has opened the door for private companies to take on roles once reserved only for government programs.
Does New Space mean that there is no longer a need for old space? In my opinion, we are seeing a shift which is visible in the Artemis program, as it blends the traditional government contractors such as Boeing, who are providing the SLS core stage and Starliner crew capsule, with SpaceX, who are supplying the Human Landing System for Artemis III.
What Rivarly?
This collaborative model acknowledges the Old Space expertise in safety and large-scale engineering as indispensable while accepting that New Space brings with it cost reductions, agility and accelerated development timescales. This partnership between legacy and emerging players is helping to drive the sector towards a forecasted $1.8 trillion valuation by 2035.
It is easy to be caught up in the narrative, a story or rivalry, New Space Vs Old Space, but it is less a battle and more an evolution. Both sides contribute vital strengths as discussed throughout this article. If Humankind wants to continue exploration of the universe and work towards lunar bases and Mars missions, the distinction between both will continue to blur.
One thing is certain: the future of the industry will look significantly different. With private companies increasingly driving innovation and legacy institutions adapting to compete and collaborate, the only result will be extraordinary growth and diversification.
Derek Harris, Director of Business Development, Skyrora Limited
The opinions expressed in this article are those of the author and are provided for commentary purposes only. They do not constitute an official company statement or position.
