A version of this article was published in SpaceNews
As a new era of space exploration and development unfolds — one with far more private-sector investment and leadership — the potential for rapid growth is promising. National security, deep space exploration, and a plethora of emerging commercial applications are driving up global space sector revenue, projected to reach $1.8 trillion by 2035 versus $600 billion in 2023.
Yet many new space companies find themselves grappling with the harsh realities of protracted development cycles and an austere fundraising environment. Consequently, nearly every publicly traded new space venture is operating at a loss, pouring considerable resources into the development of next-generation solutions but often missing growth targets. It is a phenomenon that is starting to eat into the flow of new capital. To help bridge the so-called “valley-of-death’’ that too often stands in the way of novel technologies progressing to commercial scale, space companies need to identify new revenue streams.
New revenue streams that the space industry can unlock
The space sector should consider taking a page out of the sports industry playbook, which mastered the art of corporate sponsorships, generating $90 billion in sponsorship revenue in 2024. This lucrative, high-margin revenue source remains largely untapped by space companies, presenting a significant opportunity for new funding models with minimal financial outlay.
How the space industry can replicate sports sponsorship success
But can the space industry truly attract the right sponsorship partners and replicate the sports experience? One thing space and sports have in common is their ability to attract viewers. The Apollo mission to the Moon in 1969 captured global attention like nothing before, with around 650 million people tuning into the live television broadcast of Neil Armstrong’s historic first steps on the Moon.
This monumental event unfolded in a pre-internet and social media era, underscoring the immense public fascination with space exploration. But as human spaceflight became less novel, the fascination with the space industry faded, as major programs faced delays, and the pioneering ambition of early missions gave way to seemingly “routine” low earth orbit missions to the International Space Station.
Enter the era of New Space — a private-sector-driven space race that is reigniting public interest in the cosmos. Visionary companies are pushing the boundaries of innovation and ambition and recapturing the public’s imagination with groundbreaking technology. Global government investment is rising, and with it, so too is audience size. For instance, close to 79 million viewers watched India’s Moon landing. Imagine what the first woman to land on the Moon might garner. If it were to replicate Armstrong’s Moon Walk, which attracted 18% of 1969’s global population, it would reach in the neighborhood of 1.7 billion viewers.
Space sponsorship — past success and the next big opportunity
Commercial sponsorships in space are not entirely new. Pepsi shelled out $5 million in 1996 for a Russian cosmonaut to float a four-foot-tall replica of a Pepsi can during a spacewalk, and Pizza Hut paid $1 million to have its logo emblazoned on a Russian rocket. More recently, Intuitive Machines partnered with outdoor apparel company, Columbia, to promote the company’s active-gear insulation on IM’s two lunar lander missions.
These examples were primarily opportunistic in nature, with company sponsors approaching the space industry about a potential collaboration. This raises a compelling question: What value could be created if space companies develop strategies to proactively pursue sponsorships?
The size of the global sponsorship market has been driven historically by the number of “eyes” on a brand and the amount paid for that exposure. The relentless drive for brand visibility and differentiation has led marketing teams to forge partnerships with companies that offer large-scale consumer access, particularly in the realm of broad appeal sporting events. The growing interest in space and its natural alignment with high-performance markets present an expanding audience for marketers to pursue.
Over the prior decade, industry has matured, and marquee events have showcased the potential of space marketing to capture the imagination.
What the space industry could learn from successful sports sponsorships
Using sports sponsorship deals as a benchmark for what companies are willing to spend to access relevant audiences, we can estimate a rate of about 2.5 cents US to four cents per viewer. This could translate into a potential value of $25 million to $40 million from one sponsor for a single event that attracts one billion viewers to $50 million to $80 million with two billion viewers. That revenue could be multiplied by having more than one sponsor, which would be expected for big events like the first woman to walk on the Moon or eventually the first human to visit Mars.
If pursued systematically, mimicking sports, the market for space sponsorship could exceed $10 billion annually by 2030, even if the sector only captures close to 1% of related industry marketing spend. While $10 billion may not dramatically expand the overall space market, it could also generate an additional $9 billion in industry margin contribution, representing a nearly 15% increase in current margins.
But there is more to sponsorship than monetary gains. Sponsorship provides both tangible and intangible benefits. Tangible benefits include various monetization avenues for space viewership, such as direct sponsorship revenue, merchandising, and in-kind supplier contributions. Intangible benefits can enhance long-term revenue through reinforced brand identity, broader mission reach, co-branding uplift, employee engagement opportunities, and exclusive media access. While challenging to quantify in the short term, these intangible benefits can easily surpass tangible sponsorship-derived value.
To maximize the potential of sponsorship, space companies must adopt a bold and comprehensive strategy. Rather than simply selling advertising rights to the highest bidder, they should reframe sponsorship as a partnership ecosystem. This approach allows companies to shift the value proposition from mere logo visibility to broader brand equity, expand monetization channels, and broaden branding to encompass the entire journey and mission of the company.
Drawing an analogy from sport, the sponsorship portfolio may include one partner from sporting goods and apparel, another from travel, a third representing food and beverage, and yet another for payment processing. Building an overarching narrative for the ecosystem can help create a “halo effect” for brands, allowing for precise brand fit with sub-categories of consumers and fostering a broader belief system for consumer engagement.
Seven defining questions for space companies
Before embarking on the sponsorship journey, space companies must ask themselves seven critical questions:
What is the driving force behind the development of sponsorships, and what will success look like? Should there be a specific revenue target or cash-generation goal?
Does the company have well-defined values and a mission that will resonate with partners in B2C markets?
What should the overarching narrative be for the new partnership ecosystem, and which industries align best with that narrative?
What type of company, or which companies, could contribute most to a sponsorship partnership?
Before pursuing sponsors, should the space company establish red lines for the type of sponsor prospects that could hurt its brand?
Does the company have the right resources to execute a sponsorship strategy?
How should the audience opportunity be pitched and packaged to maximize sponsorship value?
As the space industry continues to evolve, the potential for commercial partnerships represents a monumental opportunity for high-margin revenue. By strategically aligning with brands, and crafting compelling narratives, space companies can not only strengthen their financial position but also help fuel public interest in space exploration. The next frontier in space may very well be the partnerships forged on Earth. The opportunity is calling — will industry answer?