The space industry is currently undergoing a major transformation, with private companies emerging as key players. What was once a state-dominated field is now opening for smaller, Agile firms to establish themselves in this tech and capital-intensive sector. Two production strategies that are frequently used today, and are successfully used in other high-tech industries, are Lean- and Agile manufacturing. This study investigates how a combination of these methods, a LeAgile production, can be used by smaller actors to challenge established players in the space sector.
NASA and SpaceX represent two well-established actors that have shaped the modern space industry in different ways. NASA, a publicly funded, non-profit organization, is characterized by a slower, more bureaucratic approach. In contrast, SpaceX exemplifies a commercially driven company where innovation and rapid development are key drivers. Pythom Space represents a third category, as a small private company seeking to carve out a space in the industry. Through a comparative analysis of how these three actors apply Lean- and Agile production strategies, the study explores how such methods can increase revenue, improve flexibility, and shorten project lead times.
The results show that NASA’s traditional model often results in long lead times and high development costs. Projects are characterized by bespoke solutions, heavy documentation and limited standardization, making it difficult to apply Lean or Agile methods. In contrast, SpaceX has successfully integrated both principles. Through reusable components, vertical integration, rapid iteration and customer-oriented solutions, the company has dramatically reduced project timelines and costs while scaling its operations to meet commercial demand.
Pythom Space demonstrates how Agile methods, such as short iterations, digital twins and modularity, combined with Lean-inspired practices like low capital intensity and decentralized manufacturing can create an efficient, flexible and resource-efficient organization. By developing its own mission profile focused on small, easily assembled rockets with low launch cost, Pythom has positioned themselves in a niche market segment. This Agile approach enables quick adaption, late-stage customer involvement and technological innovation.
Eventually, the study shows that the choice of production strategy is crucial for a successful entry into the space industry. Lean and Agile methods not only enhance efficiency but also enable innovation and adaptability in a sector marked by rapid technological progress. For smaller actors like Pythom Space, this offers a valuable market opportunity to enter the market, both as independent players and as partners to larger organizations. However, the analysis also reveals that production strategy alone is not enough to ensure long-term competitiveness. To scale operations and meet the expectations of customers, investors and regulators, a stable organizational structure is required. With clear processes for quality assurance, capital acquisition, talent development and continuous learning within the organisation, small actors can become a real player.