SpaceX, UBS, Space Travel
Image Source: Health Thoroughfare

UBS report which is published on Sunday says that travel scenario will be different as speed travel via outer space will be overtaking the market. $20 billion is the estimated amount which will be spent in the market annually. According to UBS market will grow by $3 billion by 2030.

“While space tourism is still at a nascent phase, we think that as technology becomes proven, and the cost falls due to technology and competition, space tourism will become more mainstream,” UBS analysts Jarrod Castle and Myles Walton wrote in the note. “Space tourism could be the stepping stone for the development of long-haul travel on earth serviced by space.”

Private space companies “are investing aggressively across the space opportunity,” UBS said, and the firm believes access to space “is the enabler to broader opportunities for investment.”

Castle and Walton said “the outlook for the space economy, space tourism and long-haul travel using space has become much more bullish.” Private companies are finding profits in increasing the investment in space travel.

Private space companies “are investing aggressively across the space opportunity,” UBS said, and the firm believes access to space “is the enabler to broader opportunities for investment.” SpaceX is also planning to take people to space by taking a good amount of money from them. UBS also pointed the SpaceX new Starship which is planning to take 100 people to space. SpaceX said that Starship would be able to fly from New York to Shanghai in 39 minutes, rather than the 15 hours it takes currently by airplane.

“If we assume that 5 percent of these flights in the future are serviced by space at $2,500 per trip, the revenue opportunity as of today would be more than $20 billion per year as of today,” UBS said.

UBS estimates that there are more than 150 million passengers a year that fly routes longer than 10 hours. Last year, those routes saw 527,000 routes on an airplane that had an average of 309 seats, UBS said.

“Given the length of long-haul commercial travel, and the rules around crewing and take-off and landing time slot restrictions at airports, we think a re-usable rocket (especially if not land-based) would have materially better utilisation rates than a commercial plane,” UBS said.

Tags: , ,
Chief Editor with relevant experience of three years, Barbara has founded The News Recorder. She has a keen interest in the field of science and space. She has written several papers and high-level documentation.