The modern aerospace industry is experiencing a dynamic change from its traditional structure. What used to be a sector majority composed of national government sponsor agencies is slowly beginning a shift towards smaller corporates and privately owned businesses. Despite the rapid change in succession, there are still many positives and negatives to consider before coming to an appropriate conclusion.
The biggest drawback that private companies currently face is a lack of experience. Over 90% are start-ups that have developed over the past 10 years and even the upper 10% have a limited amount of experience compared to the national agency giants. This gap in experience also leads to an important distinction between the 2 sides: risk. Governmental space agencies have the experience and budgeting order to perform with a larger risk margin than private companies. An example of that would be the recent space launch from Virgin Galactic. The launch which was scheduled for January 9th over the coast of Ireland had experienced a failure resulting in the destruction of 9 satellites. The launch ultimately risked hundreds of thousands of dollars in terms of resources, wages and time. On the other hand, these smaller agencies also have multiple positive aspects.
The 2 biggest assets of private companies are their exposure and profitability. As national agencies are funded by the government they have a limited range in terms of exposure to media and the public. On the other hand, the privatized sector can publish and advertise its goals and launches in order to attract more attention, therefore giving them an advantage. An example would be SpaceX’s recent publication about its launch on January 10th. Not only can they advertise their launch but they can also publicly release details such as carrying 51 Starlink satellites into low earth orbit. Additionally, the purpose of many national agencies is to promote research and progression on behalf of their country. On the other hand, the private sector focuses on making money. This aspect allows them to control both their budget & cost and also provides a greater range of adaptability for unexpected financial situations. Regardless of the positives or negatives, the true benefit of privatized aerospace can only be seen in the near future.
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