Porsche plans to boldly go where no car company has gone before.
The company has long been known for its sleek and powerful luxury sports cars, but now they are looking to stretch their wings into the aerospace industry. Read on and learn about how they are trekking into this new territory.
As Porsche continues to be on the cutting edge of automotive engineering, they are also looking high up into space. Why? For lower-cost satellite launches. These launches are based in Earth orbit rather than at an orbital station like NEOS or the International Space Station (ISS). This will mean much less fuel while still meeting customer needs.
In order to accomplish their goals, Porsche has partnered with two investment firms to finance their mission. They have poured $75 million into Isar Aerospace – a German startup – hoping to send payloads into low-Earth orbit next year. With previously raised funds, Isar now has $180 million to make rockets and take aim at the skies.
According to their website, Isar is a company that specializes in cutting-edge rocket engineering research and sustainable, cost-effective access to space. The company is looking to expand into the market for small, commercial satellites and global telecommunications services.
“We are convinced that cost-effective and flexible access to space will be a key enabler for innovations in traditional industries,” said Lutz Meschke, a member of the executive board of Porsche SE and an investor in Isar. “The technological progress and the development speed of the whole organization are very impressive … We look forward to supporting Isar Aerospace with its ambitious growth plans.”
A Competitive Industry
Porsche joins Virgin Galactic as another well-known name entering into this high-stakes industry of competing rocket ships. However, unlike Space X or Virgin Galactic who are focused on passenger craft, Isar Aerospace plans to focus solely on cargo transport missions – a niche in the market that could prove profitable if it’s successful enough.
Isar’s maiden launch will be a two-stage system called Spectrum that will lift over a ton of cargo into orbit at a cost of $13 million. Isar hopes this will be a cost-effective venture with reusable rockets on the drawing board. The company is planning to have its first test flight in 2022.
Conclusion: Porsche Is Out of This World
The global commercial space industry is set to reach $1 trillion by 2040 according to recent reports from Morgan Stanley Research, making it one of the fastest-growing industries in history. As demand for satellite launches increases exponentially every year, companies like Porsche hope to meet that need and take a share of the market.
With both Airbus and Boeing experiencing production delays in their new aircraft programs, there is an opportunity for smaller aerospace manufacturers to fill the gap by providing satellite launch services on time with tight deadlines.
Still, the company will have stiff competition from established players such as Lockheed Martin but also newcomers like SpaceX and Virgin Galactic who are willing to take risks with pricing models and technology development strategies.
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