Japan's Space Venture Challenge [4]Now Common Knowledge: Four Trends in Space Business!
Hidetake Aoki
Global Brain Corporation
Masayasu Ishida
A.T. Carney Inc.
Sasagawa Makoto
Dentsu Inc.
Toshihiro Katayama
Dentsu Inc.
The space business has been led by Europe and the United States until now. Space ventures are also emerging one after another in Japan.
Here, under the title "Introduction to Space," Dentsu Inc.'s Shin Sasagawa and Shunichi Katayama interviewed Hidetake Aoki of Global Brain, a member of the Cabinet Office's Space Policy Committee who has provided extensive cooperation in Dentsu Inc.'s space-related business, and Masayasu Ishida of A.T. Carney.
Trends include "space internet," "space big data," "manned space travel," and "planetary exploration."
Katayama:Last time, you mentioned that there have been three space venture booms so far. By the way, what kind of space businesses are attracting attention now?
Aoki: Space Internet, space big data, manned space travel, and planetary exploration. Space business trends can be categorized into these four areas. The market for satellite broadcasting, communications, and positioning information is already largely established, so in terms of trends, that window has passed.
Entering the planetary exploration field might still be feasible. However, since satellites and the rockets to launch them are largely saturated, it's no exaggeration to say 2016 was the last chance to enter that market.
Sasagawa: Regarding space internet, initiatives like Facebook's efforts in Africa come to mind, right?
Aoki: Exactly. The target is regions like Africa that lack internet connectivity. Roughly 4 billion people can get smartphones but lack internet access.
Advanced nations land internet infrastructure via fiber optics and transmit signals from towers, but implementing this now in Africa would be prohibitively expensive. Using satellites is now cheaper. Western players like Facebook and Google have long focused on space internet.
Ishida: Space internet has seen several waves before, but now that satellites have become smaller and costs have dropped significantly, it's easier for new players to enter the market.
Through its Connectivity Lab initiative, Facebook aims to efficiently build internet infrastructure in Africa and emerging nations by leveraging drones, millimeter-wave, and laser communications. This requires understanding population distribution, yet accurate population maps for Africa have been lacking.
Therefore, they analyzed 350 terabytes* of satellite imagery data covering 20 countries and a total area of 21.6 million square kilometers using artificial intelligence (AI), creating a population distribution map with 5-meter resolution. While AI and IT play major roles, combining them with satellite imagery creates new value.
*1 terabyte = 1024 gigabytes
Sasagawa: Analyzing 350 terabytes of satellite imagery data is truly space big data.
Aoki: That's right. Space big data is one of the areas within the space business attracting the most investment capital.
The premise is that, with the reduction in satellite costs, launching large numbers of satellites has made near-real-time Earth observation possible. By photographing the Earth from space almost daily, extracting changes, and providing companies with insights into what is happening—or transforming those insights into foresight for predicting the future—this data can be used as material for corporate and consumer decision-making.
Sasagawa: Are there any examples already in practical use?
Aoki: An easy-to-visualize example is in the US, where satellite imagery is used to monitor parking lot occupancy at shopping malls and analyze the mall's sales performance.
Katayama: Now that AI-driven hypothesis testing is becoming possible, we can likely uncover causal relationships we never even imagined before.
Aoki: From the customer's perspective, what matters is access to the analytical data, not the satellite images themselves. Beyond space big data, we're also seeing a rise in venture companies specializing in data analysis. In Japan, for example, there's a venture called Axelspace that launches small satellites and offers services utilizing satellite imagery data.
Within 20 years, humans will land on Mars and begin building colonies.
Sasagawa: It finally looks like manned space travel will become a reality in 2017. There are also supersonic passenger planes utilizing spacecraft technology, but what's the actual situation?
Ishida: They would ascend into space and then descend, but it's said that a Tokyo-New York trip could take around 60 minutes. Regarding manned space travel, Blue Origin, led by Amazon.com co-founder Jeff Bezos, is pursuing this goal.
Ishida: I saw Jeff Bezos speak directly at the Colorado space conference this spring. He stated, "I want to create an era where millions of people live and work in space." He also said, "We're building rockets to lower the cost of access to space," and "For Blue Origin, space travel is like books for Amazon."
I believe he sees space travel as the killer application. They've announced plans to send test pilots in 2017 and their first paying customers in 2018.
Aoki: Regarding space travel, the market will truly take off in a few years. The leading company providing this service is Virgin Galactic, part of the Virgin Group led by Richard Branson. Though it's just a few minutes breaking the 100-kilometer barrier into space, hundreds have already pre-booked.
The trip costs about 20 million yen, so initially, the target market is the wealthy. However, as more people can afford space travel, prices should steadily decrease, just like with airplanes. I believe the day when space travel costs a few million yen or even a few hundred thousand yen isn't too far off.
Katayama: Finally, planetary exploration. While discussions about planetary colonization plans are emerging, it still feels like a distant world for the average person.
Ishida: For humanity, planetary colonization will eventually become a serious topic of discussion. This is because Earth's population is exploding, and per capita energy consumption is also increasing. While environmental protection and sustainable societies are emphasized, some argue that it's becoming increasingly difficult for humanity to sustain life solely on Earth.
Earlier, Jeff Bezos also stated, "To save Earth in the future, we must utilize space. I envision most heavy industry moving off-world to conserve Earth's limited resources, leaving Earth for habitation or light industry."
On the other hand, I think that behind the talk of planetary migration lies not only social issues but also a pure frontier spirit.
Aoki: Elon Musk of SpaceX says that Earth will face a crisis as early as 10 years from now. That seems a bit too soon, but within 20 years, humans will land on Mars, and in the future, the construction of colonies will begin.
Plans to build a base on the moon and migrate to Mars are taking shape. We don't know how many years it will take, but when millions of people migrate to Mars, they will need water, food, and energy. Planetary exploration for this purpose is advancing right now.
Katayama: The path to solving Earth's challenges lies in space. Considering this, space business is undoubtedly a crucial field for the future. We need people to see space not just as a romantic ideal, but as something personally relevant. For Dentsu Inc., this might be the ultimate goal in engaging with space.
Is space a bit "highbrow"?
Sasagawa: You two have outlined the " three booms " and "four trends" for us. Still, I find it challenging daily to reach those less interested in space business information.
Ishida: While astronomical events like solar and lunar eclipses feel accessible to everyone, space business suddenly raises the barrier.
Since space as a business hasn't been widely discussed before, we have to start from the very beginning, carefully explaining things like "Is space even a business?" and "Do private companies actually engage in space ventures?"
However, I also sense that the groundwork is being laid for topics that were once only understood within the space industry to now reach B2B audiences, including companies and ventures from other industries interested in space. I hope that in the future, this will expand to B2C, sparking interest in this industry among people with diverse skills and backgrounds.
Katayama: That said, I still feel the entry point hasn't really broadened.
Ishida: Globally, space is discussed through three main lenses: ① national security, ② business and industry, and ③ science, exploration, and romance. In Japan, I think the ③ image is particularly strong.
The general impression of space feels like it has a high barrier to entry, somehow coming across as this 'high-minded' kind of content (laughs). I feel that adding discussions about business and industry, alongside the perspective of dreams and romance, will bring even more depth and breadth to the field.
Aoki: That's right. If you talk about space business, people might react with "How dirty! Trying to make money off space, which is all about dreams and romance!"
Turning venture activities themselves into "content"
Sasagawa: If space is a future growth industry, Dentsu Inc. hopes to help create an atmosphere where space ventures get more attention...
Aoki: The business model for HAKUTO, which you oversee, Sasagawa-san, is unique, isn't it? It's a case unseen overseas.
Sasagawa: The HAKUTO case (au × HAKUTO MOON CHALLENGE) involved pitching the venture's activities themselves—not just its technology—to large corporations.
To be honest, I was skeptical at first about whether companies would sponsor a space venture with little name recognition. But when we showed the video in Dentsu Inc.'s elevators, I was surprised by the surge in inquiries from within the company.
Aoki: There's no doubt that space holds immense appeal as "content." In fact, many companies are genuinely interested in space business. When I interact with corporate new business development managers, I can really feel their desire: "If it pays off economically, we want to try it."
So why do they hesitate? Reasons include the high initial costs of space business and the difficulty of generating profits quickly. But I also believe there's a lack of outreach power on the space content side.
It's crucial for communication professionals like Dentsu Inc. to enter the space sector, engage numerous companies, and convey the appeal of space to consumers.
Ishida: I was really surprised when HAKUTO's TV commercial aired. What's great about HAKUTO isn't just their sponsorship model, but their centripetal force. They have 100 volunteers – engineers, web designers, marketers, consultants – people who've honed their skills in their main careers, gathering at their own expense to get involved in space development. This is a rare model globally.
Conversely, what I find effective in Western initiatives is precisely the kind of straightforward contest like the " Google Lunar XPRIZE." Creating a contest with an unparalleled high goal—unmanned lunar exploration and a $30 million prize—and having the world compete for first place becomes a catalyst for boosting space development itself. It also sparks the birth of space venture companies.
Katayama: I believe the traditional space industry is a world carefully built by experts and those with a strong passion for space.
While space business is poised for explosive growth, I've come to realize anew that truly expanding it will be difficult unless we can make people who previously had no connection to space feel its practical benefits, including its entertainment value.
Sasagawa: Our goal is to boost the space industry by increasing space-related portfolios within Japan's advertising industry, much like sports content.
Aoki: Reading the book Marketing the Moon makes it clear: during the Apollo program in the 1960s, the U.S. government marketed the moon. President J.F. Kennedy communicated this externally to rally public support and reflect it in policy, energizing the entire nation. We hope Dentsu Inc. will take on a similar role in Japan's space business.
Sasagawa &Katayama : Thank you!
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Author
Hidetake Aoki
Global Brain Corporation
Bachelor of Science in Aerospace Engineering, University of Texas at Austin; Master of Science in Aerospace Engineering, Auburn University Graduate School of Engineering; Master of Business Administration, Keio University Business School. During his student years, he worked on the development of microsatellites. At a major manufacturer, he was involved in the development of medium and large satellites. Currently, while working as a venture capitalist at Global Brain, he contributes to the promotion of space business and the creation of a private-sector-led space industry as a space evangelist. Member of the Subcommittee on Space Industry Promotion, Space Policy Committee, Cabinet Office.
Masayasu Ishida
A.T. Carney Inc.
Graduate of the Department of Industrial and Manufacturing Engineering, Faculty of Engineering, The University of Tokyo. Provides support for corporate strategy, business strategy, and R&D strategy primarily in the high-tech/IT, automotive, and space industries. Since 2014, has authored the column " <a href="http://www.itmedia.co.jp/author/209215/" target="_blank">New Trends in Space Business</a> " for ITmedia Business Online. Launched Japan's first space business conference, "SPACETIDE," in 2015. Member of the Space Civilian Utilization Subcommittee and the Space Industry Promotion Subcommittee of the Cabinet Office's Space Policy Committee.
Sasagawa Makoto
Dentsu Inc.
After joining Dentsu Inc. as a new graduate, I built my career in creative and business design. Alongside supporting executives in their growth journeys, I worked on startup support, transforming technology and corporate activities into solutions to solve challenges for large corporations. I aim to champion talent and vision that society should recognize, ensuring they receive the spotlight they deserve. Key initiatives include: ispace (lunar exploration venture), #dearMoon (private lunar orbit project), Kabu & Peace (Yusaku Maezawa's "National Shareholder" concept), Forbes SMALL GIANT AWARD (new pitch event for SMEs), and KIRIN Camp (development camp where Japan's national soccer coach directly trains junior high students). 365 Series (original concept planning for El Golazo annual compilations). Capital and business alliance with Fulla (app strategy partner). Toranomon Hills "Boku, Tora no Mon." (symbol creation in urban development). MIT Technology Review "Innovators Under 35" Ambassador. Part-time lecturer at Hitotsubashi University and Kaishi Professional University.
Toshihiro Katayama
Dentsu Inc.
Spaceport Japan, General Incorporated Association Co-founder & Director. After joining Dentsu Inc., held positions in promotion/media marketing/content, corporate client sales, and public strategy for government and local authorities. Specializes in "advertising across all domains," "new ventures," "M&A," and "public strategy." Always strives to walk where no path exists.
