TOKYO, Nov 05 (News On Japan) - Japan’s space industry is gaining new momentum under Prime Minister Takaichi’s vision of building a “strong economy,” with the sector identified as a key target for strategic investment alongside AI and energy security.
The growing focus on space policy is raising expectations for faster development of related businesses and technologies.
During a recent meeting of the National Growth Strategy Council, space was designated as one of 17 key strategic fields. Attention on the sector has also intensified as Takaichi previously served as minister in charge of space policy. Reflecting this renewed interest, the 2025 Space Summit was held in Obihiro, Hokkaido last month, drawing numerous industry figures and government officials to discuss Japan’s future direction in space development, satellite data utilization, and related business opportunities.
At the summit, Odajiri Norifumi, president of Space Port, revealed plans to build a new launch facility to meet rising demand for large rocket launches. The project aims to create what he described as a “space route” connecting distant cities via suborbital travel — effectively enabling intercontinental transportation through outer space. Hokkaido’s Tokachi region, with its favorable climate and open coastline to the southeast, is viewed as an ideal location for a new Asian “space hub,” and local industry groups are working to establish it as a center for space-related businesses.
According to Daiki Kato, senior manager at the Japan Research Institute, the global space business is expanding rapidly and is projected to maintain high growth in the years ahead. The World Economic Forum estimates the size of the global space industry at 630 billion dollars in 2023, with forecasts reaching approximately 1.8 trillion dollars by 2035 — a pace far exceeding overall global GDP growth.
The driving forces behind this expansion, Kato explained, include the rise of private-sector leadership, falling costs, and diversification of space-based solutions. “Space development used to be led by governments,” he said, “but now we’re seeing more private-sector participation, including large corporations like Amazon and a wave of startups entering the field.” Private innovation has significantly reduced access costs through technologies such as reusable rockets and miniaturized satellites pioneered by companies like SpaceX.
Another factor is the growing range of commercial services derived from satellite technology. Originally designed for government use, satellite-based communications and Earth observation are now expanding into civilian applications, while private companies are also exploring new frontiers such as lunar exploration and in-orbit servicing — areas once limited to national space agencies like NASA and JAXA.
This rapid growth, Kato noted, has intensified global competition. “In the United States, SpaceX continues to lead the market, supported by a government framework that not only promotes technological development but also acts as a major customer for private companies,” he said. Meanwhile, China is pursuing a contrasting approach, maintaining state-led control over its rapidly developing space sector.
As Japan positions space as a pillar of its economic strategy, industry experts say the coming years will determine whether the Takaichi administration can turn the country’s growing ambition in orbit into tangible results on the ground.
Source: テレ東BIZ
