Illustration: Aïda Amer/Axios.

SpaceX, Amazon and others have high hopes for launching constellations of satellites that will provide internet to the globe, while some startups hope to nearly continuously beam back images from space.

Yes, but: The industry's growth is limited by the earthly half of the equation: ground infrastructure needed to receive data and control the satellites themselves.

Why it matters: Investments in the roughly $277 billion satellite industry are mostly funneled into space-based assets, not the ground infrastructure needed to keep those satellites functioning.

  • In 2018, investors funneled about $110 million into companies focusing on building ground segments to facilitate satellite communication, while about $845 million was invested in satellite constellations and airborne platforms used to collect data, according to SpaceNews.
  • "We often advise investors to look on the ground segment side for underexploited opportunities," Carissa Christensen, CEO of Bryce Space and Technology, told Axios.
  • "The satellites are usually the flashier, more sexy part of the company, but there's a lot of critical infrastructure that surrounds it," Mike Safyan, vice president of launch at Planet, a company that operates more than 100 satellites, told Axios.

What's happening: A number of companies are looking to build out that infrastructure, including receiving and relaying stations, and capitalize on increasing demand from governments and companies.

  • In 2019, Amazon announced it would start providing ground station services for customers around the world, and last month it added a new location in Sweden. Other players include RBC Signals and Italian ground station operator Leaf Space.
  • Companies hoping to launch hundreds of satellites to beam internet to people all over the planet are also working to develop user terminals that their customers would use to log on from their homes.

The catch: Earth itself comes with a host of challenges.

  • It's covered in water, limiting locations for ground terminals.
  • Each country has its own regulatory framework that needs to be followed.
  • "One of the common challenges is actually the need for greater internet bandwidth on Earth to more rapidly get the data downlinked and buffered at the ground station sites back to the cloud for processing," says Duncan Eddy, space operations lead at Capella Space, a user of Amazon's ground station services.
  • And analysts question whether there will be enough consumer demand to support the satellite internet industry at large even if the ground infrastructure is set up to support them.
"I think the market is a lot smaller than most of these systems anticipate, and the reality is that they're going to run out of customers before they run out of technology."
— industry analyst Tim Farrar told Axios.

The bottom line: As the satellite industry grows, infrastructure on the ground needs to expand and improve to keep those spacecraft healthy and functional in orbit.

Go deeper: Thousands of new satellites could make asteroid hunting harder

Go deeper

Biden: The next president should decide on Ginsburg’s replacement

Joe Biden. Photo: Drew Angerer / Getty Images

Joe Biden is calling for the winner of November's presidential election to select Ruth Bader Ginsburg's replacement on the Supreme Court.

What he's saying: "[L]et me be clear: The voters should pick the president and the president should pick the justice for the Senate to consider," Biden said. "This was the position the Republican Senate took in 2016 when there were almost 10 months to go before the election. That's the position the United States Senate must take today, and the election's only 46 days off.

Trump, McConnell to move fast to replace Ginsburg

Photo: Alex Wong/Getty Images

President Trump will move within days to nominate his third Supreme Court justice in just three-plus short years — and shape the court for literally decades to come, top Republican sources tell Axios.

Driving the news: Senate Majority Leader Mitch McConnell and Senate Republicans are ready to move to confirm Trump's nominee before Election Day, just 46 days away, setting up one of the most consequential periods of our lifetimes, the sources say.

Updated 7 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 10 p.m. ET: 30,393,591 — Total deaths: 950,344— Total recoveries: 20,679,272Map.
  2. U.S.: Total confirmed cases as of 10 p.m. ET: 6,722,699 — Total deaths: 198,484 — Total recoveries: 2,556,465 — Total tests: 92,163,649Map.
  3. Politics: In reversal, CDC again recommends coronavirus testing for asymptomatic people.
  4. Health: Massive USPS face mask operation called off The risks of moving too fast on a vaccine.
  5. Business: Unemployment drop-off reverses course 1 million mortgage-holders fall through safety netHow the pandemic has deepened Boeing's 737 MAX crunch.
  6. Education: At least 42% of school employees are vulnerable.