Major space players likely largest beneficiaries of Japan’s new $1T Yen fund
On March 12, Japan’s cabinet approved a 10-year fund of $6.7 USD billion (1 trillion yen) to promote satellites, space exploration, and transportation. Historically, the nation’s flagship Japan Aerospace Exploration Agency (JAXA) hovers around a $1 USD billion budget plus supplemental funding, meaning this is creating a sizeable annual windfall for Japanese space players. The funds are earmarked to support private and academic partnerships as JAXA intensifies initiatives to further the Japanese space ecosystem.
Around half of the 50 commercial Japanese companies that Quilty tracks have been active since 2010. Emerging New Space players — which include companies such as Astroscale, Axelspace, GITAI, and Pale Blue — will welcome the funds, but from our perspective, only a handful of major players are likely to be key beneficiaries. The Strategic Space Fund emphasizes areas where traditional Japanese space contractors have thrived: (1) satellites, (2) space science/exploration, and (3) space transportation. Since 2015, JAXA satellite manufacturing spend is shared across only three entities: the NEC Corporation, Mitsubishi Electric, and Mitsubishi Heavy Industries (MHI).
On the launch side, JAXA has historically (and continues to) pin its hopes almost exclusively on Mitsubishi Heavy Industries. Admittedly, there are no other domestic options for heavy launch, with IHI Aerospace’s Epsilon launcher only supporting payloads to LEO <1400 kg. Small launch vehicle startups Interstellar Technologies and Space One have launched demo missions but so far have yet to reach orbit.
It seems Mitsubishi Heavy Industries is best positioned to capitalize on the new space fund, given their dominant position in satellite manufacturing and launch. The large sum, however, is likely to draw attention from other established Japanese firms: MHI sister firm Mitsubishi Electric (MELCO) operates a thriving satellite manufacturing business beyond their JAXA contracts, while another MHI sister firm, Mitsubishi Corporation, operates Japan Space Imaging and recently made investments into satellite servicing start-up Astroscale. Meanwhile, Mitsui & Co. is pushing ahead with ambitious human spaceflight plans and partnerships after their short-lived stint in launch services with Spaceflight Industries. NEC Corporation, Canon, IHI, and Toshiba are among the other Japanese conglomerates with interests in space.
Auto manufacturers in Japan are also eyeing the growing Japanese space industry as another economic stronghold. Only a few months ago, Toyota demonstrated Lunar lander prototypes at the Japan Mobility Show, one of the world’s “big five” auto conferences. This could set a precedent for an upcoming trend of auto manufacturers joining the space sector.
Quilty QuickTake: The $6.7B dedicated space fund over the next 10 years, plus JAXA’s growing annual supplemental funding, clearly shows the Japanese government’s ambition to achieve space superiority. Established firms will likely receive the bulk of funding as Japan looks to shore up its strategic space assets. Whether NewSpace, Old Space, Automaker, or Conglomerate, one thing is clear: now is a great time to be a Japanese space company.
SOURCE: https://spacenews.com/japan-creates-multibillion-dollar-space-strategic-fund-to-boost-space-industry/