The SpaceX Effect

Abstract

Space Exploration Technologies Corporation (SpaceX) had demonstrated its reusable launch vehicle technology by recovering and reusing the core stage of its Falcon 9 launch vehicles. SpaceX believes reusable launch vehicles will enable its vision of colonizing Mars. This had unleashed pricing competition as SpaceX had begun offering low-cost access to space. Rival launch service providers, although contentious of SpaceX business model, are planning to introduce reusable launch systems into their product mix. This article offers a survey of such launch service providers from 4 distinct geographical regions with varying degrees of public-to-private ownership and catering to different requirements. The study conveys that regardless of these variables, reusability is fast becoming the norm of the launch vehicle industry. Interestingly, managers of these programs do not shy from admitting that Elon Musk and SpaceX are influential factors in their decision-making. The article argues that the space industry is witnessing a major disruption guided by innovation and determination to take bold risks. The core argument is that even though SpaceX is yet to prove its business model, perhaps the real effect of it is not in making profits but in leading a permanent change in the space industry.