The Morgan Stanley Space 60

Exhibit 1: The Morgan Stanley Space 60 maps the public-company “picks and shovels” behind the U.S. space economy. Instead of treating space as only rockets and satellites, it shows the full value chain from raw materials → specialty alloys → fuels → semiconductors → components → spacecraft/launch → satellite operators and services.

The key idea is that space growth should not only benefit launch providers like Rocket Lab or spacecraft primes like MDA/Lockheed/Boeing, but also upstream suppliers such as metals, gases, chips, sensors, antennas, avionics, and mission-critical subsystems.

Market size and growth

The global space economy was estimated at about $630B in 2023 and is projected by McKinsey/World Economic Forum to reach $1.8T by 2035, driven by cheaper launch, satellite broadband, positioning/navigation/timing, Earth observation, defense, and space-enabled services. That implies roughly a 9.1% CAGR from 2023 to 2035.

Extending that same growth rate one extra year gives an indicative 2036 TAM of about $2.0T (10 years from today – 19 Jun 26).

Table 1 - TAM

Space 60 value-chain segment	Best market-size proxy	Current market size	CAGR	10-year TAM estimate
1. Raw Materials & Mining	Aerospace raw materials	$38.2B in 2023	7.5%	~$94B by 2036
2. Specialty Materials & Alloys	Aerospace materials	$34.7B in 2026	7.2%	~$70B by 2036
3. Propulsion & Fuels	Space propulsion systems	$34.2B in 2026	7.9%	~$73B by 2036
4. Electronics & Semiconductors	Space electronics	$14.9B in 2025	8.9%	~$35B by 2035
5. Components & Subsystems	Satellite parts/components	$44.3B in 2026	9.0%	~$105B by 2036
6. Spacecraft & Launch Systems	Satellite manufacturing + launch vehicles	$40.6B in 2026	19.3%	~$237B by 2036
7. Satellite Operators & Services	Satellite communications	$98.3B in 2025	11.0%	~$279B by 2035

 Table 2 – Key Drivers

Value chain segment	What it includes	Key revenue drivers	Profit drivers
Raw materials & mining	Aluminum, copper, rare earths, rhenium, beryllium, titanium inputs	Launch cadence, satellite production volumes, defense demand, strategic minerals demand	Commodity pricing, low-cost reserves, vertical supply agreements, geopolitical scarcity
Specialty materials & alloys	Carbon fiber, ceramics, glass, thermal protection, superalloys	Lighter satellites/rockets, reusable launch, hypersonics, thermal/radiation protection	Proprietary materials, qualification barriers, aerospace-grade margins, long certification cycles
Propulsion & fuels	Industrial gases, liquid oxygen/hydrogen, methane, specialty propellants	More launches, reusable rockets, lunar missions, in-space propulsion	Scale production, logistics density near launch sites, long-term supply contracts
Electronics & semiconductors	Radiation-tolerant chips, RF chips, processors, sensors, optical components	More satellites per constellation, higher data throughput, edge processing in orbit, AI payloads	High-value chips, design wins, radiation-hard qualification, mission-critical reliability
Components & subsystems	Valves, actuators, antennas, wiring, batteries, avionics, thermal systems	Satellite bus production, spacecraft modernization, defense systems, constellation replenishment	Recurring content per satellite, aftermarket/spares, proprietary subsystems, integration complexity
Spacecraft & launch systems	Rockets, satellite buses, spacecraft manufacturing, launch services	Launch volume, national security space, mega-constellations, lunar/LEO infrastructure	Reusability, manufacturing cadence, fixed-cost absorption, launch reliability, backlog conversion
Satellite operators & services	Broadband, EO data, IoT, satcom, direct-to-device, navigation/data services	Subscriber growth, government contracts, mobility markets, enterprise connectivity, data analytics	Utilization of satellite capacity, ARPU, spectrum/orbital rights, low churn, service bundling

Source: Morgan Stanley Research “Space 60” framework, as shown in the image/exhibit. Public summaries describe Morgan Stanley’s Space 60 as a list of 60 public stocks across seven space value-chain categories.

https://www.advanced-television.com/2026/04/16/bank-space-industry-worth-1tn-by-2040/