Why Automobile Giants Are Investing in Space Technology?

In recent years, the automotive industry has been reaching for the stars—quite literally. Major car manufacturers like Toyota, Honda, and Geely are venturing into space technology, investing in rockets, satellites, and beyond. But what's driving this cosmic shift? Let's explore the reasons behind this trend, backed by data and sprinkled with a touch of humor.

The Connected Car Revolution: Driving on the Information Superhighway

Imagine your car as a smartphone on wheels, seamlessly connected to the internet, other vehicles, and infrastructure. This isn't science fiction; it's the burgeoning reality of connected cars. These vehicles rely heavily on satellite technology for navigation, communication, and entertainment.

Market Projections: The global connected car market is projected to grow from $84.72 billion in 2022 to a staggering $243.75 billion by 2030, at a compound annual growth rate (CAGR) of 13.4%.

Revenue Streams: By 2030, connected vehicles could represent a $742 billion annual revenue opportunity for automakers and suppliers.

With such astronomical figures, it's no wonder automakers are looking to space to secure their slice of the pie.

Toyota's Rocket-Fueled Ambitions

Toyota, known for its reliable sedans and pioneering hybrids, has set its sights on the cosmos.

Investment in Interstellar Technologies: In January 2025, Toyota's subsidiary, Woven by Toyota, invested approximately $44.4 million in Japanese startup Interstellar Technologies (IST). This partnership aims to mass-produce rockets, enhancing Japan's space launch capabilities.

Strategic Goals: This move aligns with Japan's ambition to increase its rocket launch frequency, aiming for 30 launches annually by the early 2030s.

By leveraging its manufacturing expertise, Toyota hopes to streamline rocket production, making space more accessible and, perhaps, as reliable as a Camry.

Honda's Ascent to the Stars

Not to be left on the launchpad, Honda has also embarked on a space-bound journey.

Reusable Rocket Development: Since 2019, Honda has been developing a proprietary reusable rocket to launch low-Earth orbit satellites. The company plans to conduct test flights soon, integrating its core technologies, including combustion engines and vehicle guidance systems, into rocket development.

Honda's venture into reusable rockets signifies a commitment to reducing costs and environmental impact, much like its approach to fuel-efficient vehicles.

Geely's Satellite Constellation: Navigating the Final Frontier

Chinese automaker Geely, the parent company of brands like Volvo and Lotus, is charting its own course in space.

Geespace Initiative: Established in 2018, Geespace aims to develop, launch, and operate low-orbit satellites to provide high-precision positioning and connectivity services. As of September 2024, Geespace has launched 30 satellites, with plans to expand its constellation to 240 satellites by 2025.

Strategic Vision: Geely's satellite network is designed to support autonomous driving, vehicle-to-everything (V2X) communication, and other mobility services, ensuring seamless connectivity even in remote areas.

By building its own satellite network, Geely aims to reduce dependency on third-party providers, ensuring greater control over data and services—a move that's truly out of this world.

The Bigger Picture: Why Space?

So, why are these automotive giants investing in space technology? The reasons are multi-faceted:

1. Enhanced Connectivity: Satellites provide global coverage, ensuring vehicles remain connected even in areas lacking terrestrial networks. This is crucial for real-time navigation, autonomous driving, and over-the-air updates.

2. Data Control and Security: Owning the infrastructure allows automakers to manage data transmission securely, protecting against potential breaches and ensuring user privacy.

3. New Revenue Streams: Investments in space technology open up avenues for new services, such as advanced telematics, in-car entertainment, and subscription-based features, turning vehicles into platforms for continuous revenue generation.

4. Technological Synergy: The aerospace and automotive industries share common technological challenges, such as lightweight materials, energy efficiency, and autonomous systems. Collaborations can lead to innovations benefiting both sectors.

Conclusion: From Assembly Lines to Astronautics

The convergence of automotive and aerospace industries is not just a flight of fancy; it's a strategic evolution driven by the demands of modern mobility. As vehicles become more connected and autonomous, the infrastructure supporting them must also evolve—extending beyond Earth's boundaries.

Automakers venturing into space technology are positioning themselves at the forefront of this transformation, ensuring they remain relevant and competitive in a rapidly changing landscape. So, the next time you look up at the night sky, remember: the road ahead might just lead to the stars.