Annual Status of the Space Industrial Base

Key Chapter Title List

1. Executive Summary
2. Introduction
3. Novel Space Activities
4. Outernet
5. Space Policy and Financial Landscape
6. Next-Generation Power and Propulsion Systems
7. Commercial Space Launch
8. Space Domain Awareness
9. International Landscape
10. Space Workforce, STEM, and Education
11. Appendix C: Revisiting Key 2023 Actions and Recommendations

Document Introduction

The "2024 State of the Space Industrial Base" report, led by NewSpace Nexus and jointly released with the U.S. Space Force, the Air Force Research Laboratory, and the Defense Innovation Unit, is an authoritative summary based on the annual SSIB conference discussions. This report aims to assess the progress and shortcomings of the United States in securing future dominance in the space domain. The core issue is how the U.S. can integrate its civil, commercial, and military space strategies to maintain freedom of action, ensure national prosperity, and shape the rules of space civilization in the face of rapid advancements by strategic competitors like China.

The report begins by identifying the most urgent current deficiency for the United States: a unified "North Star Vision." Despite key progress in policy (e.g., the new DoD directive, the Space Force's first commercial space strategy) and industrial achievements (e.g., record launch numbers, the reusable breakthrough of Starship, the first commercial lunar landing), there is a lack of a grand strategic narrative at the national level capable of coalescing investment, attracting allies, and guiding long-term economic development and human settlement goals. The absence of such a vision leads to isolated efforts across agencies and a lack of coherent demand signals in critical areas such as propulsion technology, sensing systems, and cislunar operations.

Using strategic competition as a lens, the report provides an in-depth analysis of the geopolitical landscape. China's space progress is viewed as the core challenge. The report details China's systematic advancements in reusable launch systems, cislunar infrastructure plans, mega-constellation deployment (e.g., the "Qianfan" plan), lunar and deep space exploration (e.g., Chang'e-6 sample return), declarations on space resource utilization, and counterspace capabilities (co-orbital, electronic warfare, directed energy). China's model of integrating commercial, civil, and military assets enables it to challenge U.S. leadership across all orbital domains.

Simultaneously, the report sharply points out multiple internal risks and institutional dysfunctions within the United States. Emerging fields (e.g., space-based solar power, advanced propulsion) lack clear responsible entities; regulatory bottlenecks (from ITAR/EAR export controls to launch licensing) are mismatched with industry development speed; physical infrastructure (e.g., LNG pipelines, payload processing facilities) lags behind the commercial launch cadence; and over-reliance on a single supplier (e.g., SpaceX) in critical launch markets creates vulnerabilities. Although the private sector demonstrates strong innovative vitality, it often lacks federal government support to de-risk new technologies.

In specific capability areas, the report reveals an uneven development picture. Space mobility and logistics are identified as the cornerstone for the flexibility of in-orbit economic and defense operations, yet they are severely underfunded, even zeroed out in the U.S. Space Force's FY2026 budget request. The licensing framework for novel space activities (e.g., in-orbit manufacturing, servicing, assembly), despite proposals from the White House and Congress, still lacks a formal pathway, hindering commercial innovation. In key areas such as lunar sample return and cislunar space domain awareness, the U.S. faces the risk of falling behind.

The report ultimately proposes three core recommendations: define and promote a "North Star Vision" centered on peaceful economic development and human space settlement; finalize the licensing process for novel space activities; and make necessary, substantial investments in space mobility and logistics. The conclusion emphasizes that winning the new space race is not just about outpacing competitors, but about securing a future of prosperity, freedom, and leadership beyond Earth. This requires the United States to take immediate, coordinated action in strategic vision, regulatory frameworks, and investment strategies.