UBS believes there will be very lucrative ramifications from the space flight efforts currently led by Virgin Galactic, SpaceX and Blue Origin.
A lengthy UBS report published on Sunday found that, in a decade, high speed travel via outer space will represent an annual market of at least $20 billion and compete with long-distance airline flights. Space tourism will be a $3 billion market by 2030, UBS estimates.
"While space tourism is still at a nascent phase, we think that as technology becomes proven, and the cost falls due to technology and competition, space tourism will become more mainstream," UBS analysts Jarrod Castle and Myles Walton wrote in the note. "Space tourism could be the stepping stone for the development of long-haul travel on earth serviced by space."
UBS expects the broader space industry, which is worth about $400 billion today, will double to $805 billion by 2030 when accounting for these innovations. While these sub-sectors would be a small part of that, Castle and Walton said "the outlook for the space economy, space tourism and long-haul travel using space has become much more bullish."
Private space companies "are investing aggressively across the space opportunity," UBS said, and the firm believes access to space "is the enabler to broader opportunities for investment."