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This report explores consumer spending habits and identifies potential financial opportunities in space-related industries. It evaluates monthly and yearly budgets, providing estimates on expenditures across various categories such as housing, communication, and entertainment. Additionally, it examines the demand for suborbital and orbital flights, comparing potential earnings needed to afford these experiences. Insights into the Fortune 500 highlight where aerospace and defense companies fit within the market, addressing how future innovations in space can meet consumer needs and drive economic growth.
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Demand • Demand is what you buy. • Where do you spend money now? • How much do you spend on space? • Are there needs or opportunities that space could satisfy?
Activity Part 1 • Where do you spend money? • Monthly and yearly estimates • Normalize • Evaluate
Budget • Draft estimates for where you spend money every month/year • For example: rent, cell phone bill, internet bill, cable bill, taxes, car payment, travel costs (gas, airfare, etc.), electric/gas, food, beverages, etc… • Normal these with total income
How much of this goes to space? • DirecTV = ~2% of total bill • Cable = ~1% of total bill • Taxes = 0.18% total • GPS Device/New phone = ~$2.00 • Others?
Budget • Estimate what you spend on general categories • Vacations, entertainment, transportation, energy, communications • Normalize
Space Business Opportunities? • Tourism • Based on your previous numbers: • How much would you have to make to afford a suborbital flight ($200k) in a single year? • If you didn’t go on vacation for 2 years? 5 years? • How much would you have to make to afford an orbital flight ($20M) in a single year? • If you didn’t go on vacation for 2 years? 5 years?
Fortune 500 • Rank of the top 500 U.S. corporations ranked by their gross revenue after adjustments • Where in the list is the first aerospace and defense company? • Who is it?
Economic Activity • Business is about delivering basic needs • Companies thrive on making life easier • Even transformational companies are just solving our everyday needs differently • The light bulb - in place of a better gas torch • The internet instead of quicker mail delivery • The cell phone instead of better answering machines • Even innovation is based in a basic need
Consider… • How might space play a role in making our lives easier in the future? • What current demand forces may increase given appropriate space based innovation? • Commercial space demand is a new driver of technology in space • Traditionally it is driven by government needs • How do commercial needs differ?