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The Logistics Trend Radar 7.0 - Insights. Shaping Tomorrow

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Low
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5 - 10 Years
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The space sector has come a long way and seems poised for future growth

Projections for space activities

Source: McKinset & Company (2023): A giant leap for the space industry

Relevance to the Future of Logistics

End-to-End Satellite Logistics

Tens of thousands of satellites are expected to be launched in the next decade. These satellites will require logistics services to reach their designated coordinates in space. This includes not only current logistics solutions focusing on aspects like launch and in-orbit services but also an end-to-end approach that demands significant logistics expertise.

Various logistics activities are involved in the end-to-end movement of satellites, from reserving rocket freight space on behalf of customers and sending specialist teams to pick up satellites at manufacturing sites, to delivering these to launch sites. Additionally, logistics providers will be involved in transporting replacement parts and equipment for maintenance purposes and in satellite decommissioning at the end of a device’s life.

As the space economy continues to grow, there will be growth opportunities for end-to-end logistic solutions. However, this will require significant investment and infrastructure to reduce the costs of transporting satellites and other equipment.

Supplying Cargo

As space activity expands, it will be necessary to transport more provisions, fuel, equipment, and materials into space to support this growth. There will also be demand for logistic players to move necessary space equipment and supplies between facilities.

Logistic infrastructure will be required not only to store but also transport space equipment, which could prove challenging due to stringent space and weight restrictions on rockets and shuttles.

The number of shipments destined for space is likely to grown, along with increased diversification of the products delivered. Here at DHL, we expect modular standardization of packaging and containers to adequately protect products while also minimizing volume and weight.

Satellite-Powered Supply Chains

Global connectivity continues to be an ongoing issue for the supply chain. Many companies experience poor shipment visibility when their goods are transported across borders. However, the satellite internet is poised to revolutionize connectivity worldwide, providing access especially to underserved areas and remote regions.

Satellite-powered supply chains feature real-time tracking and monitoring with GPS and other global navigation satellite systems providing precise location data for vehicles, containers, and other assets throughout the journey. These supply chains benefit from improved inventory management – satellite imagery can monitor, for example, raw material sources, crops, and livestock health, enabling better demand forecasting and resource allocation. In addition, satellite communication bridges connectivity gaps in remote regions, enabling efficient logistics operations in areas with limited ground infrastructure.

Data-driven optimization can be achieved by combining satellite data with other sources like Internet of Things (IoT) sensors and enterprise resource planning (ERP) systems. These generate valuable insights and help companies make data-driven decisions on route optimization, fuel efficiency, carbon emission reduction, and more.

Examples include satellites in low-Earth orbit (LEO) constellations, such as Starlink, offering high-speed internet access to users around the globe. Already, Maersk teams are working with Starlink to use satellite data for tracking container ships, optimizing routes, and improving fuel efficiency.

Through data collection, satellites can help logistics providers optimize supply chains and provide better services to customers. And there is broad potential for satellites to provide network coverage across the globe, eliminating connectivity issues in so-called dead zones.

Challenges

Challenge 1

Extreme conditions, such as zero gravity and frigid temperatures, impose limitations on the permissible products and materials as well as their transportation methods.

Challenge 2

Launch vehicle dimensions and weight constraints may not allow for economies of scale.

Challenge 3

Commercial cost-benefit propositions for logistics services are untested but developing and operating end-to-end logistic services for the space economy remain expensive; cutting costs will require significant investment and technological breakthroughs.

Challenge 4

The legal framework for logistics operations in space is not yet available and evolving space regulations might not fully adapt to new business models like end-to-end logistics, creating uncertainty and hurdles.

Extreme conditions, such as zero gravity and frigid temperatures, impose limitations on the permissible products and materials as well as their transportation methods.
Launch vehicle dimensions and weight constraints may not allow for economies of scale.
Commercial cost-benefit propositions for logistics services are untested but developing and operating end-to-end logistic services for the space economy remain expensive; cutting costs will require significant investment and technological breakthroughs.
The legal framework for logistics operations in space is not yet available and evolving space regulations might not fully adapt to new business models like end-to-end logistics, creating uncertainty and hurdles.

Outlook

Overall, the space economy is booming, with more nations and private investors pouring resources into space-related activities. The market for end-to-end satellite logistics continues to evolve, with significant uncertainties alongside promising opportunities.

The pace of technological advances, regulatory adoption, and cost reductions will likely determine the viability and future landscape of the space economy. For now, the exact impact on the logistic industry remains undetermined and full realization of the space economy is still distant.

This trend should be PASSIVELY monitored,with developments and use cases on the horizon.

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Sources

  1. Space Foundation (2023): Space Foundation Releases The Space Report 2023 Q2, Showing Annual Growth of Global Space Economy to $546B
  2. Space Foundation (2023): The Space Report 2023 Q4 Shows Record Number of Launches for Third Year in a Row, Technological Firsts, and Heightened Focus on Policy