There was a time when space exploration was the exclusive domain of nation-states.
During the Cold War, intense competition between the U.S. and the Soviet Union made space development a government-driven endeavor-characterized by large budgets, long development timelines, and rigid certification processes.
In the 21st century, however, the landscape has shifted dramatically.
The driving force behind this transformation is known as “New Space.”
| Old Space | New Space | |
|---|---|---|
| Leading Entity | Government agencies (NASA, ESA, DoD) | Commercial Entities (SpaceX, Blue Origin, Planet Labs) |
| Development Style | Conservative, verification-first | Agile, risk-tolerant, iterative |
| Development Timeline | Years to decades | Months to ~2 years |
| Cost Structure | Hundreds of billions | Tens to hundreds of millions |
| Technology Approach | Fully space-qualified components | COTS and commercial tech adapted for space use |
| Launch Strategy | One-time-use rockets | Reusable launch vehicles, mass deployment of smallsats |
Unlike the traditional Old Space model led by national space agencies, New Space reflects a shift toward private-sector innovation and market-driven growth.
Hallmarks include lower cost, shorter development cycles, adoption of commercial technology, vertical integration, and service-oriented business models.
This shift is transforming space from a government-only scientific and defense domain into a competitive commercial industry.
Commercial entities such as SpaceX, Planet Labs, Blue Origin, OneWeb, and Rocket Lab now handle end-to-end space operations-from satellite manufacturing and launch to ground-segment operations and service delivery.
They are democratizing access to space through reusable launch vehicles and large-scale deployment of satellites in Low Earth Orbit (LEO), achievements once thought unimaginable.
Traditionally, space systems relied on expensive space-grade components, but New Space companies increasingly design systems using commercial off-the-shelf (COTS) technologies.
This pragmatic approach rests on the premise that commercial-grade hardware can operate reliably in space when its radiation tolerance is validated and appropriate protections (e.g., shielding, redundancy) are applied.
For example, SpaceX has reduced launch costs to a fraction of historical levels through Falcon 9 reusability.
Meanwhile, small-launch providers like Rocket Lab are pioneering dedicated services for small satellites, opening new opportunities for startups and small-to-medium enterprises (SMEs) to enter the space industry.