SOUTH AUSTRALIA GROWTH STATE SPACE SECTOR STRATEGY CONTENTS FOREWORD 3 SOUTH AUSTRALIA’S SPACE SECTOR PRIORITIES 14 Premier of South Australia 3 Contribute to Australia’s Space Strategy 14 South Australian Space Council 4 Launch to accessible Lower Earth Orbits 16 Space Industry Association of Australia Supporting Positive Norms for Space Actors 18 (SIAA) – Statement 4 Moon to Mars – Food Production in Space 19 Capitalise on NewSpace 19 EXECUTIVE SUMMARY 5 Many, Small, Connected Satellites 19 SOUTH AUSTRALIA’S SPACE STRATEGY 6 Machine Learning and AI to exploit Space Derived Data 21 The Growth State Initiative 6 Cultivate South Australia as a centre-of-gravity Vision For Growth 6 for space activities 22 Mission 6 An Expanding Space Workforce [SKILLS] 22 Strategic Priorities 7 An Innovation Ecosystem [INNOVATION] 24 Growth Target 7 Supportive Infrastructure [INFRASTRUCTURE] 25 Globally Competitive Industry [TRADE] 26 SECTOR OVERVIEW 10 Attractive to investors [INVESTMENT] 26 Space Sector Overview - Global 10 Industry and Government as Partners 29 Impact of COVID-19 10 Government Role and Focus 29 Space Sector Overview – National 11 Industry Role and Focus 29 The Australian Space Sector Defi ned 11 Space Sector Overview – South Australia 12 SUMMARY: ACTION PLAN FOR GROWTH 31 South Australia’s Competitive Advantages 12 Summary Table of Goals 31 Summary Table of Opportunities (Actions) 32 Cover: The Hyperion (SDA) Small Satellite developed by Inovor Technologies circling above South Australia’s Lake Eyre. Image: Inovor Technologies 2 FOREWORD PREMIER OF SOUTH AUSTRALIA South Australia has a long and proud history of space-related work, with a strong advanced manufacturing and technology skills base and is now at the forefront of Australia’s space industry. The South Australian Government has established an The Australian Space Agency has set an ambitious environment that is conducive to rapid growth in the goal to triple the size of Australia’s domestic space space sector. Space is one of nine sectors we have industry to $12 billion by 2030. South Australia is selected as part of South Australia’s Growth State consolidating and refi ning its activities to best support agenda to further our economic prosperity. the state’s space industry, in collaboration with the Australian Space Agency. The future for South The state’s vibrant space sector consists of more than Australia’s space industry is bright, providing the 80 private companies, research and educational talent, knowledge and passion to capture the full institutions, and government departments. They potential of space. specialise in a broad range of space activities, from upstream manufacturing of next-generation satellites and space technology, to downstream infrastructure and applications, as well as the processing and disseminating of space data. South Australia is also home to the majority of operational control, procurement offi ces and research for Australian Defence Force space capabilities. Hon Steven Marshall MP Premier of South Australia South Australia has received signifi cant investment for Australia’s space industry, putting the state at the centre of the nation’s space endeavours. The Australian Space Agency, the SmartSat Collaborative Research Centre (CRC), and the South Australian Space Industry Centre (SASIC) are the centrepiece of a vibrant entrepreneurial ecosystem contributing to South Australia’s thriving space economy. We are also building a world class entrepreneurial community and supporting infrastructure for innovators to collaborate and grow their ideas at Lot Fourteen in Adelaide’s central business district. Ultimately, this community will deliver the entire space value chain and enable the design, launch, and mission control of NewSpace capabilities. 3 FOREWORD SOUTH AUSTRALIAN SPACE COUNCIL Taking advantage of the unique concentration and diversity of space related expertise based in South Australia, the Council has representation from space The key objective of the research organisations, universities, private enterprise, South Australian Space defence, government, and space specialists. Council (the Council) is It provides a valuable platform to consider the contribution of the space industry to the broader social to support the growth and ecosystem and maximise cross-sector benefi ts. development of the space Bringing together a diversity of experience and industry in South Australia, industry contexts, the Council is well-placed to assess and to encourage and the strategic environment and provide input for enhance innovation within government decision making to support the space sector through innovation, investment, education the sector. and training, manufacturing, and employment. It also connects the South Australian space sector to key national and international networks. SPACE INDUSTRY ASSOCIATION OF AUSTRALIA – STATEMENT The Space Industry Association of Australia The strategy also aims to increase awareness (SIAA) recognises the importance of this strategy of space-enabled services and support users for South Australia, and consequently for the of these services by connecting upstream and Australian space sector as a whole. downstream components of the sector. The strategy identifi es numerous opportunities Through supporting the Australian Space where the South Australian Government can Agency’s ambitious national space sector assist the local space sector to grow and thrive, growth goals, the strategy ensures the South including support for the full breadth of space Australian Government is in turn enabling local organisations based in South Australia from industry to develop and mature. SIAA views this manufacturing right through to launch. partnership between industry and government as a critical ingredient of South Australia’s future space industry. 4 EXECUTIVE SUMMARY This strategy is an important element of South Australia’s broader Growth State Strategy. It outlines growth plans for nine key sectors and is aimed at ensuring the state’s space industry journey continues its upward trajectory. The detailed strategic approach will be implemented through a series of focused action plans developed in partnership with industry. In recent estimates, the value of the global space However, a new market has emerged off ering economy was USD$350 billion with expectations that phenomenal opportunities to new entrants who are it will triple to US$1.1 trillion by 2040.1 Concurrently, unencumbered by legacy practice. Australia’s share of the global market is less than 1%, These NewSpace enabled products and services which is low in comparison to Australia’s overall global have strong potential to improve the productivity economic contribution.2 and competitiveness of virtually every sector of To capitalise on the potential for greater market share, the broader economy, as well as making a direct the Australian Space Agency has a clear objective contribution to growth. to grow Australia’s space industry; tripling the space Having achieved the strategic objectives laid out in sector’s contribution to GDP to AUD$12 billion per year South Australia’s inaugural 2016 Space Innovation and creating an additional 20,000 jobs by 2030. South and Growth Strategy (Action Plan), this evolution of Australia, with its vibrant space ecosystem, is already playing an important role in achieving this goal and South Australia Growth State: Space Sector Strategy fuelling a thriving and enduring South Australian space has been developed through close consultation with sector, supporting Australia’s national space strategy, industry and academia. while capitalising on the opportunities of NewSpace+. Whilst the impact of the COVID-19 pandemic has Traditional space-related services fundamentally aff ected the sector in its initial phase, South Australia’s underpin our way of life on Earth and deliver a large space sector growth target projects above average proportion of the current revenue attributed to growth of 5.8% for the next ten years. With a concerted the space sector. These services comprise Position eff ort from all states and territories, industry, academia, Navigation and Timing (PNT), communications, and federal government, Australia is on track to and Earth observation; and are largely delivered by achieve the ambitious targets set by the Australian large traditional space companies. Space Agency. Three pillars for growth will Capitalise Cultivate shape eff orts to Contribute on the South Australia to Australia's build a thriving opportunities as a centre-of- national and enduring presented by gravity for space space strategy + South Australian NewSpace activities space sector: 1 Space, Investing in the Final Frontier, Morgan Stanley, 2019, https://www.morganstanley.com/ideas/investing-in-space/ 2 Despite Australia comprising just 0.3 per cent of the world’s population, + NewSpace is typifi ed by commercial developments (vice Australia’s nominal GDP is estimated at US$1.5 trillion (almost A$2 trillion) government with a traditional national security focus), and accounts for 1.7 per cent of the global economy. Why Australia, access to venture capital (previously unavailable for space Benchmark Report 2019, Australian Trade & Investment Commission ventures) and disruption. 5 SOUTH AUSTRALIA’S SPACE STRATEGY THE GROWTH STATE INITIATIVE South Australia’s Growth State Strategy is a partnership between the South Australian Government and industry to accelerate our economy through business expansion and innovation. This space sector strategy is an important