What are the main factors that transformed the predominantly public aerospace industry to create a new market and a new economy?

Abstract

Humanity has always looked to the skies with curiosity about what lies beyond our perspective. With technological advancements, a space race began that, due to funding challenges and its nature as a pure public good, initially became predominantly a public activity. However, the dynamics of the sector have recently attracted private capital. This article aims to identify the main factors that led to the transition of aerospace activities from a predominantly public nature to a burgeoning market and new economy. Additionally, it intends to present the current state of government participation in the aerospace sector, identify the inefficiencies of the public sector, the major technological and market transformations, and the new role of the state in regulating the aerospace sector along with its challenges. To identify the causes that led to the transition of aerospace activities from a predominantly public nature to a new market and a new economy, the methodology of the study was structured as follows: literature review; collection of secondary data; and data analysis. In conclusion, the main cause of the transition of aerospace activities from a predominantly public nature to an expanding market was the emergence and continuous growth of new technologies. These technologies significantly expanded the scope of aerospace activities, opening a set of opportunities that gave rise to new markets and created an economy. The entry of the consumer as a new actor in this sector droves this transformation.