Ever Wondered Why SpaceX is So Successful?

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Imagine booking a plane ticket, taking your flight, and then tossing the plane into the ocean after you land. Sounds wasteful, right?

But that’s exactly how space travel used to work 😥 Each rocket launch would use millions of dollars in parts that were destroyed or lost after a single mission.

But SpaceX had other plans, which changed the space industry entirely.

So, what did SpaceX do that NASA or ISRO failed to do?

Let's see!

Since its founding in 2002, SpaceX has been on a mission to make space travel more accessible and affordable. With Elon Musk's vision to enable human life on Mars, SpaceX has changed the aerospace industry.

With lower costs, SpaceX was able to offer its services to commercial clients, creating a new market for private companies interested in space.

It was crucial for industries like telecommunications, where companies needed to launch satellites to deliver global services. The success of SpaceX encouraged other companies and investors to consider space as a viable business environment.

Innovation Context

When SpaceX entered the space industry in 2002, it was challenged and monopolized by government agencies like NASA in the U.S., Roscosmos in Russia, and the European Space Agency.

These organizations controlled most space missions, and private companies rarely got involved due to the high costs and risks.

For example, launching a single satellite could cost up to $400 million because rockets are meant for one-time use and would burn up or get destroyed after each launch.

The industry had two issues that SpaceX saw as opportunities:

• High costs and limited innovation

Space missions were expensive, and only a few government-funded agencies could afford to send rockets into space. Since rockets were not reusable, the cost to build, launch, and lose a rocket each time was huge.

Even large aerospace companies, like Boeing and Lockheed Martin, continued using expensive, single-use rockets. It kept prices high and slowed down the pace of space exploration.

• Lack of commercial access

Space was largely inaccessible for businesses and civilians because only government agencies controlled space missions.

Private companies could not use space for satellite networks, research, or exploration. This limited commercial growth and made it impossible for smaller companies to work on space-related projects.

Innovative Strategy

SpaceX used three main strategies to become a leader in space exploration: cost reduction with reusable rockets, vertical integration, and opening space for private companies and civilians.

These strategies changed the space subject from a high-cost, government-only domain into an affordable and accessible for business, science, and tourism. Here’s a look at each strategy in detail.

Cost Reduction with Reusable Rockets

One of SpaceX’s massive innovations is its reusable rocket technology. In the early 2000s, rockets were single-use: they launched, reached their target, and then were lost in space or destroyed upon re-entry.

All this made each mission super expensive, often costing hundreds of millions of dollars per launch, and SpaceX had a plan for this:

• SpaceX’s approach

Elon Musk believed we could build rockets that can withstand multiple launches, similar to how we reuse airplanes. The company worked on these space vehicles that could return to Earth, land safely, and be relaunched.

This led to the development of Falcon 9, a partially reusable rocket where the first-stage booster returns, lands vertically, and can be used again.

• Cost impact

Reusable rockets have drastically reduced the cost of each launch. Before these, space organizations had to spend $10,000 to send a kilogram into space.

With Falcon 9, the cost dropped to around $2,700 per kilogram. SpaceX’s reusability model has allowed it to perform missions at almost half the cost of traditional space agencies and private aerospace companies.

• By reusing rockets, SpaceX saves about 40% on launch costs, allowing it to conduct missions that would be out of reach for most companies and research groups.

Vertical Integration for Control and Lower Costs

Vertical integration means SpaceX makes most of its components in-house instead of outsourcing. Parts often come from multiple suppliers for traditional aerospace companies, which is expensive and leads to delays.

With vertical integration, SpaceX has more control over quality, production speed, and cost. SpaceX manufactures nearly 85% of its rockets’ parts in its facilities, including everything from engines to electronic systems.

Check out this video to see how SpaceX manufactures its rocket parts:

By controlling production, SpaceX can innovate faster, make quick adjustments, and save money on manufacturing. This has reduced external costs by an estimated 20-30%.

And that's how SpaceX created the Falcon Heavy rocket in just six years, compared to the typical decade-long process.

• With this approach, SpaceX’s average cost per mission is up to 30% lower than that of traditional aerospace companies that depend on third-party suppliers.

Opening Space for Private Companies

The other goal of SpaceX was to make space accessible for everyone, from research institutions to private citizens. This strategy brought SpaceX’s mission beyond government contracts and allowed other industries to engage in space activities.

By offering affordable options, SpaceX allowed companies, universities, and individuals to enter space like never before.

• Commercial missions and partnerships

SpaceX has worked closely with NASA. It offered its rockets to private companies and non-governmental groups, which created a new market for satellite launches, scientific research, and space tourism.

Through the Commercial Crew Program, NASA worked with SpaceX to develop spacecraft for sending astronauts to the ISS. NASA saved over $500 million by contracting SpaceX instead of building its solution.

• In 2021, SpaceX launched Inspiration4, the first all-civilian mission to space. It allows private individuals to experience space travel.

Implementation

The company took concrete steps to make its vision a reality. By focusing on reusability, in-house production, and partnerships with NASA, SpaceX built the foundation for modern space exploration.

Developing and Testing Reusable Rockets

SpaceX’s primary focus was to make rockets reusable to lower launch costs. Traditional rockets were single-use and burned up on re-entry. But SpaceX changed this by building rockets that could return to Earth, land safely, and be relaunched.

Steps Taken:

• Falcon 1 and Falcon 9 development: SpaceX started with small-scale rockets like the Falcon 1, which paved the way for Falcon 9, the first reusable rocket model. Falcon 9 has a “first stage” that could detach, return, and land back on Earth, allowing SpaceX to reuse it for future launches.

• Landing experiments: SpaceX tested methods to guide the Falcon 9’s first-stage booster back to Earth after each launch. Early attempts often failed, but SpaceX kept learning from these tests and improved its technology. By 2015, SpaceX successfully landed a Falcon 9 booster for the first time.

Today, SpaceX has landed over 100 Falcon 9 boosters, a record in the space industry that shows the company’s dedication to reusability. Here’s a video video showing Falcon 9’s first successful landing:

Building Rockets and Components In-House

SpaceX decided to manufacture most rocket parts in-house to reduce costs and speed up production. This approach allowed SpaceX to control quality, make quick design changes, and reduce production costs.

Steps Taken:

• In-House engine development: SpaceX developed its engines, such as the Merlin engine for Falcon rockets and the Raptor engine for its Starship rocket. By building these engines in-house, SpaceX could experiment, test, and improve them faster.

• Advanced manufacturing techniques: SpaceX invested in 3D printing and automation to build complex parts faster. For instance, SpaceX uses 3D printing to create parts of its engines, reducing production time and material costs.

• Rapid prototyping and testing: SpaceX adopted a “test and learn” approach. It would build prototypes quickly, test them under real conditions, learn from failures, and improve the design.

SpaceX’s in-house manufacturing helped reduce rocket production time by about 30-40% compared to traditional aerospace companies, making it possible to launch more missions each year.

Partnering with NASA and Building Trust

Although SpaceX started as a private company, it quickly recognized the value of working with NASA for credibility and secure funding.

NASA needed a partner to transport supplies and astronauts to the International Space Station (ISS), and SpaceX was ready to fill that role.

Steps Taken:

• Commercial Resupply Missions: SpaceX first partnered with NASA for resupply missions to the ISS through its Commercial Orbital Transportation Services (COTS) program. NASA’s funding helped SpaceX continue developing the Falcon 9 and the Dragon spacecraft, which became the first private spacecraft to deliver cargo to the ISS in 2012.

• Commercial Crew Program: In 2014, SpaceX won a contract from NASA’s Commercial Crew Program to develop a crewed version of the Dragon spacecraft (Crew Dragon) for transporting astronauts to the ISS. It made SpaceX the first private company to receive such a contract, increasing its reputation and helping secure other commercial partnerships.

On average, NASA saved over $500 million per mission by working with SpaceX instead of relying solely on government-funded programs. Here’s a rocket launch video NASA did in collaboration with SpaceX to save the NASA astronauts stuck in ISS:

Expanding the Space Market with Starlink

SpaceX also expanded into commercial markets, creating new revenue streams and showing how private companies could use space.

One of SpaceX’s most ambitious projects is Starlink, a network of small satellites designed to provide global internet coverage, particularly for remote areas.

Steps Taken:

• Starlink deployment: SpaceX launched thousands of small, low-orbit satellites for Starlink, creating a constellation that provides internet service to rural and underserved communities.

• Commercial Satellite Launches: SpaceX’s affordable Falcon 9 and Falcon Heavy rockets attracted commercial clients needing satellite launches. Telecommunications companies, research institutions, and other private entities turned to SpaceX for affordable launches.

SpaceX generated an estimated $3 billion in annual revenue by 2023 with Starlink internet services and satellite launches. Here’s how Starlink is growing in space:

Future Outlook

Looking ahead, SpaceX has set ambitious goals for the future, including Mars colonization through its Starship project, expanding Starlink coverage, and achieving 100% reusability in its spacecraft. These milestones may shape the global space industry for decades.

1. Mars colonization: SpaceX aims to establish the first human settlement on Mars by the 2030s, with Starship designed to carry up to 100 passengers per mission.

   • This project may cost around $10 billion, with funding support from private investments and government contracts.

2. Starship reusability: The Starship project is a fully reusable launch system to transport cargo and humans to interplanetary sites. The objective is to reduce space travel costs to under $1 million per mission.

SpaceX has received over $2.9 billion from NASA for developing Starship to support Artemis missions to return humans to the Moon.