Russia subdued in front of SpaceX

In the past history, Russia had a great control over the space industry. Not too long, but till 2013 Russia was a predominant player in the field of rocket launching, manufacturing along with the proton boosters. But subsequently, various technical problems with the proton and the parallel stiff competition from SpaceX have rendered the Russian models unusable. In fact, such stiff competition has literally washed away the market of the Russia rocket launchers. In the current financial year, it is anticipated that the Russian rocket launching market will account for only 10% of the total market share in comparison to 50% of the SpaceX market share.

Competition Status in the recent past

In the recent years that have gone by, the Russian counterparts had made a strong statement about competing equally with SpaceX and other such companies. They had assured of providing cost-effective, highly reliable service from the geostationary orbit. For instance, The Russian Company, Energia, which is into rocket manufacturing, has been boasting of the new medium value rocket which has been named as Soyuz-5. It has been built specially to give a tough competition to SpaceX.

But in contrary, Chief Spaceflight officer of Russia, Mr. Dmitry Rogozin, has expressed some views which duly contradict the previous competition status. He has stated that the rocket launching market for Russia is as small as 4% of the total space industry market. He also fears that such a small share will not be enough to compete with the likes of SpaceX and the added competition from China as well. He further added that if his nation can concentrate on payload manufacturing, then it will be very profitable for them and is a way of making sufficient money.

As per the latest independent analysis, the valuation of the global market of launching rockets is worth about $5.5 billion. Since the Russians have lost almost half of the share of such market, it has hit them with a revenue loss of about $2 billion, which is a huge amount.

Mr. Rogozin has correctly cited that satellite manufacturing is a much bigger industry valuing worth $ 14 billion a year as compared to launching industry. So Russia has not been quite dominant in the satellite manufacturing industry off late unlike the launching industry.

In a nutshell, what appears from the statement of Rogozin that Russia is truly in a spot of bother as far as the satellite industry is concerned and facing a tough challenge from its competitors.