Commercialization of Human Space Flight: Comparing the Market Strategies of an Incumbent vs. Insurgent Aerospace Company
David Myers (2025 February) Embry-Riddle Aeronautical University
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Abstract
The “Space Race” of the late 20th century was a marvel of innovation spurred on by intense geopolitical competition. The U.S. and Soviet rivalry established human presence in space. Even by today’s technological standards, it is remarkable to think that the first human-made object in orbit, Sputnik, launched in 1957. Yet only 12 short years later, in 1969 NASA successfully landed the first humans on the Moon (Mutchler, 2020). During the years in between and those that followed a full range of space-based initiatives were born including Earth observation, communications, and robotic deep space exploration. However, it is often human space flight (HSF) that garners the most public interest and requires the most intense investment of capital and ingenuity.
Today the rivalry continues, but in the form of a commercial “Space Renaissance.” No longer limited to nation-state managed and funded programs, hundreds of companies from around the globe are vying for a position in an increasingly commercialized space industry. Essentially there are two categories of companies in the modern competition. “Incumbents” are generally aerospace giants that can trace their heritage back to the first days of the Mercury program, while the “Insurgents” are relatively newer start-ups, looking to bring a Silicon Valley style agility to space endeavors.
For investors and space industry observers alike, it is helpful to examine real-world case studies of companies from both categories. This provides important insights into the changing competitive landscape and which approaches may be the more effective in developing sustainable human space flight platforms. This research paper compares the approaches of two specific companies, Lockheed Martin (LMCO) as the incumbent and Blue Origin as the insurgent. The paper explores the different approaches the companies are taking for market development and risk mitigation in Human Space Flight. It also examines the strategic initiatives that each company is undertaking with regard to low Earth orbit habitats, lunar development, and even missions beyond the Moon.