RIYADH: Saudi Arabia’s space industry holds great potential for growth after recording $400 million in revenue in 2022, according to a recent report. The sector, expected to reach an average annual value of $2.2 billion from 2023 to 2030, holds significant opportunities, as highlighted by a document from the Saudi Communications, Space and Technology Commission. The development of distinct sovereign capabilities for spacecraft is expected to become a pivotal subsector within the Kingdom. The report highlighted the small satellite manufacturing market is projected to reach $68 billion in the region by 2030. Furthermore, around 148 satellites are set to be launched in the Middle East by 2030, presenting a largely untapped market opportunity. The report also presented the challenges accompanied by such ventures. It stated that a highly competitive global market, in addition to heightened supporting costs, could hinder growth. However, key enablers such as a space sectoral fund for local players, incentivization programs, and upskilling initiatives can offset these challenges and reduce barriers, the report stated. Launch services will also play a prominent role in the sector. The report stated that developing and operating a national spaceport, as well as localizing small launcher operations, are amongst the best opportunities in this subsector. Partnering with ground networks for capability building and hosting ground stations are amongst the opportunities in the ground segment, which is set to reach a value of $5 billion worldwide by 2030. Furthermore, satellite-based communication connectivity services will also play a crucial role in the sector’s overall growth, coupled with Earth observation and space exploration. Another promising subsector highlighted is sixth-generation technology, which is anticipated to generate $45.5 billion in value if applied in the Kingdom. The report also underscored that the space tourism market is expected to reach $600 million by 2030. On a global level, government investment in space in 2022 reached $100 billion among 86 countries. In the Middle East, the amount invested was $1.2 billion in 9 countries. The report further highlights that the global space economy is set to reach $738 billion in 2030 from $464 billion in 2022.