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How Elon Musk’s SpaceX Just Dominated The Rocket Industry!
While there have been ups and downs for Twitter and Tesla, things have gone much more smoothly for SpaceX, yet another company run by Elon Musk. Because of “a proven fleet of reusable rockets that can fly at a pace that rivals can’t match,” the business virtually controls the entire global space market, according to experts. However, how did SpaceX win the space race? Let’s find out in this episode!
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While Twitter’s CEO Elon Musk has been busy lately battling problems on Twitter and threatening litigation against Meta over its new program Threads, his satellite communications business has been exceeding the opposition.
According to a recent Wall Street Journal article, SpaceX, which was first established in 2002 by the owner of Tesla with the intention of colonizing Mars, now holds a “de facto monopoly” over the market for rocket launches. SpaceX’s rockets handled 88% of flights so far in 2023, according to information on launches collated by astrophysicist Jonathan McDowell. Last year, customer flights from American launch sites were powered by 66% of SpaceX’s rockets.
There aren’t many SpaceX alternatives available anytime soon. Arianespace and Blue Origin, two companies founded by Jeff Bezos, have not yet launched any vehicles. As companies upgrade to newer models, competing vehicles like the Ariane 5 rocket from ArianeSpace and the Delta IV Heavy rocket from United Launch Alliance are being phased out.
The Vulcan Centaur from ULA, the New Glenn from Blue Origin, and the Ariane 6 from Arianespace are just a few of the rockets that have been being produced for years without having had a flight test.
At a business event in March, ULA Chief Executive Tory Bruno declared, “We are, for the first time, really in the history of launch, in a situation where there is scarcity.”
After Russia invaded Ukraine in 2022, a significant option, the Russian Soyuz rocket, was made unavailable to many launch customers.
According to John Holst, a retired Air Force space operations officer who writes for a newsletter about the space sector, SpaceX is an effective monopoly at the moment because the competition is unable to field anything.
As a result, many government organizations and satellite operators abide by SpaceX’s capabilities and schedule limits to launch satellites into orbit for a variety of purposes, including internet service provision and weather tracking. One of only two businesses performing national-security spaceflights, SpaceX is also the only business associated with NASA to carry humans to the International Space Station.
Some satellite-internet providers pay SpaceX to launch products that directly compete with Starlink, the providers’ satellite-broadband business. For instance, in 2019, SpaceX launched a satellite for the Kacific satellite internet startup. SpaceX launched 56 times between January 2022 and June 2023 for its Starlink company, which alarmed several clients.
Christian Patouraux, CEO of Kacific, told the Journal that it was “obviously a very uncomfortable situation” to have a supplier who wanted to move down the value chain and begin competing with its own clients.
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