The head of the Italian Space Agency (ASI), Teodoro Valente, underscored the importance of private investment in the space industry, stating that its exponential growth is unattainable without significant private sector involvement. 

Speaking ahead of the International Astronautical Congress in Milan, Valente argued that while regulation is necessary, private capital should not be discouraged.

“All estimates on the space economy’s exponential growth would be difficult to achieve without substantial private sector entry,” Valente told Reuters. He added that private capital enables public resources to act as a multiplier, expanding the sector’s potential.

The global space economy is projected to soar to $1.8tn by 2035, up from $630bn in 2023, growing at an annual rate of 9%, according to a report by the World Economic Forum and McKinsey. Private investment surged to a record $70bn across 2021 and 2022, reflecting increasing institutional interest in the sector.

Despite these advancements, Valente stressed the need for regulatory clarity to define roles, responsibilities, and long-term sustainability in private space operations. Italy recently introduced a framework to establish legal guidelines for the industry, setting a precedent for global space governance.

As private capital continues to flow into space ventures, regulatory efforts will play a key role in balancing innovation with sustainability in the rapidly evolving sector.

Source: Reuters