A primer on the commercial space sector, orbital infrastructure, and why asset-backed finance is the next chapter for space.
The space economy has transformed from a government-only domain into a thriving commercial market. Since the early 2000s, private enterprise has driven launch costs down by over 95%, enabling thousands of new satellites and entirely new business models. Commercial revenue now represents over three-quarters of total space sector value.
Satellites operate at different altitudes depending on their mission. Each orbit type offers distinct characteristics for communications, observation, or navigation.
Home to Earth observation satellites and broadband mega-constellations like Starlink and OneWeb. Short signal delay makes LEO ideal for internet connectivity. Satellites orbit in roughly 90 minutes.
Primarily used for navigation constellations such as GPS, Galileo, and GLONASS. MEO provides a balance between coverage area and signal strength, with orbital periods of around 12 hours.
Satellites here match Earth's rotation, appearing stationary above a fixed point. Ideal for communications, direct broadcast television, and weather monitoring. A single GEO satellite covers one-third of the planet.
At its core, every satellite consists of four key subsystems working together to deliver a mission from orbit.
Generate electrical power from sunlight
Structural platform, propulsion, and thermal control
Mission equipment: cameras, transponders, sensors
Transmit and receive data to ground stations
The space segment only works because of the ground infrastructure that supports it. Ground stations, teleports, and gateways form the critical link between satellites and end users.
Antenna facilities that send commands to and receive data from orbiting satellites. Often located in remote areas to minimise radio interference.
Telemetry, Tracking & Command centres monitor satellite health, orbital position, and performance. They enable operators to manage and control their assets in real time.
Commercial facilities that aggregate satellite traffic and connect it to terrestrial fibre networks. They serve as hubs for content distribution and broadband services.
High-throughput ground terminals that connect satellite broadband constellations to the internet backbone. Essential infrastructure for services like Starlink and OneWeb.
Satellite operators generate revenue through predictable, contracted services. The business model is fundamentally built on long-term agreements that provide recurring cash flows.
Operators sell transponder capacity or data throughput under multi-year contracts to telecommunications companies, broadcasters, and government agencies. Terms typically range from 3 to 15 years.
Satellite bandwidth is leased to enterprise customers, internet service providers, and mobile network operators for backhaul, connectivity, and redundancy. Pricing is usage-based or fixed-term.
Earth observation satellites generate revenue through imagery and analytics products sold to agriculture, insurance, defence, and environmental monitoring customers. Data is often sold as a subscription.
Aviation leasing transformed how airlines finance their fleets. Over half of the world's commercial aircraft are now leased. Space assets share the same fundamental characteristics that made this possible.