Space

In 2020, the Society of Japanese Aerospace Companies reported that the space industry had turnover of 322 billion yen (over $3 billion). Japan’s space industry is known for its industrial and technological skills, particularly in research and development. By value, major subsectors were: space vehicles (81%), followed by ground facilities (10%), and software (9%).  The market is dominated by four main players: Mitsubishi Heavy Industries (solid fuel rockets); IHI Aerospace (liquid-propellant rockets); Mitsubishi Electric Corporation (MELCO); and NEC Space Technologies. These are supported by venture capital-backed startups such as Astroscale (debris removal demonstrations and missions), iSpace (developing lunar rovers and landers), Axelspace (launching a constellation of microsatellites for Earth observation), and GITAI (building robots to conduct activities in space). The number of start-ups in the space industry is increasing, operating in a range of fields.

Japanese companies are heavily dependent on government contracts with over 80% of their revenue stemming from publicly funded projects. However, in recent years venture capital investment has been rapidly increasing and the government is moving to fund both “Old” and “New” space companies. The industry’s heavy reliance on public contracts can be attributed to two factors: Japan is a relative latecomer to the New Space arena and is only just beginning to commercially exploit space data, and until the mid-2000s Japanese Agencies and departments were almost entirely focused on scientific research and development. Japan has developed a Basic Plan on Space Policy, which is implemented by the National Space Policy Secretariat in the Cabinet Office and several government ministries, including those responsible for science and technology (MEXT), communications (MIC), industry (METI), and defence (MOD). The Japan Aerospace Exploration Agency (JAXA), which has most of its budget under MEXT, is the central agency responsible for implementing Japan’s government funded space activities, including technology development. A number of market sector studies are forecasting substantial and continued a long term growth in the Japanese space sector out to 2050. We are now seeing increased interest in international collaboration.