SpaceX Devoting Its Rockets to Starlink Leaves the Market Struggling

The SpaceX company, founded by Elon Musk, is deploying its Falcon 9 rockets to expand the global Starlink satellite network, sharply limiting opportunities for external customers. According to ixbt.com, this situation has become a serious challenge for many startups and other operators in the space industry, forcing them to wait years for future launches. As Ixbt.com reports .

According to statistics, while Starlink missions accounted for 54 percent of Falcon 9 launches in 2020, this share rose to approximately 79 percent by 2026. As a result, several major satellite companies were warned that launch slots for sending their systems into space would not become available until 2028–2029.

Financial Priorities and the Business Model

SpaceX’s distinctive business model is driving this situation. For a company that is both a major commercial launch operator and the owner of the world’s largest satellite constellation, launching its own systems is considerably more profitable. In particular, the Starlink project generated approximately $11.4 billion in revenue in 2025, accounting for 60 percent of SpaceX’s total income, while the traditional rocket launch business generated around $4.1 billion.

The company has openly stated in its filings that it may prioritize its own payloads over US government contracts and commercial customers. This motivation is growing stronger as the Starlink network expands. Meanwhile, more than 500 US companies developing satellites are already operating in the market, with total investment in them estimated at $50 billion since 2000.

Industry Alternatives and Future Prospects

For most young companies, Falcon 9 remains the most practical and affordable way to put their systems into orbit. However, rising prices are making the situation even more difficult: while the cost of a single launch was estimated at around $54 million in 2013, it has now reached $74 million. The problem affects not only startups but also Amazon’s satellite internet project, as flights of United Launch Alliance’s Vulcan rockets had been temporarily suspended.

Amid the resulting shortage, industry players are being forced to seek new alternatives. For example, Rocket Lab announced that it would acquire the Iridium satellite operator for $8 billion in an effort to strengthen control over its infrastructure. These restrictions are expected to ease only when the heavy Starship rocket enters regular service and SpaceX significantly increases its overall launch capacity.