For years, the space business has revolved around a very specific idea: launch more satellites, faster and cheaper. The race to fill low Earth orbit with large constellations has skyrocketed demand and turned takeoff into a multibillion-dollar industry, but it has also brought to the table a problem that for a long time remained in the background: what to do with these satellites when they reach the end of their useful life and continue to take up space in orbit. In this context, the United States has taken a decisive step by promoting and beginning to materialize the exorbitant market.
New business on the horizon. This step forward has already resulted in a concrete contract. Starfish Space has been awarded of an agreement valued at 52.5 million dollars by the Space Development Agency (SDA) of the United States Space Force to offer a service for deorbiting satellites at the end of their useful life. The assignment includes the development, launch and operation of the otter ship in low orbit intended to deorbit satellites of the PWSA when they are no longer operational, with a first operation and the possibility of carrying out several more. The launch is planned for 2027.
behind the scenes. This shift cannot be understood without the economic context that has turned space into a high-volume industry. Global space launch services market reached $21.19 billion by 2025 and, according to estimates by Precedence Researchcould climb to 70,560 million in 2035, with a compound annual growth rate of 11.56%. A substantial portion of that revenue comes from continuous satellite deployment, driven by constellations that require frequent launches to maintain and renew their in-orbit networks.
An increasingly saturated orbit. Having thousands of satellites operating at the same time is not only a question of deployment, but also of end-of-cycle management. Those responsible for large constellations must decide whether to deorbit their satellites relatively early to limit the risk of orbital debris or whether to keep them active for as long as possible to extract their full economic and operational value. This tension, without a simple solution, has become one of the main drivers that push us to search for new formulas to manage the end of life in orbit.
What changes with “deorbit-as-a-service”. Starfish’s proposal is based on separating the end of life of the satellite from its design and daily operation, allowing an external spacecraft to be responsible for deorbiting without requiring prior modifications to the devices in orbit. The company maintains that this approach allows operators to maximize the useful life of their constellations and delegate the retirement of those satellites that cannot deorbit themselves.
The previous step. Although the deorbit mission has not yet launched, Starfish Space comes to this point with a previous history of in-orbit demonstrations. The company launched Otter Pup 1 in June 2023 and managed to maneuver it to within 1,000 meters of a target ten months later, a relevant milestone for approach and control operations. In October, an Impulse Space Mira spacecraft used Starfish software to approach another spacecraft to within 1,250 meters, and in June 2025, Otter Pup 2 was launched with the goal of performing the first commercial docking of satellites in low orbit.
The big question to answer. What is now being tested is whether satellite deorbiting can go from being an exception to becoming a recurring industrial practice. The expansion of constellations and the pressure to keep low orbit operational force us to look for solutions that do not depend solely on each individual satellite. In this context, the United States’ decision to contract this type of services offers a first sign of where the sector can evolve, although its real scope can only be measured when the first missions begin to operate.
Images | Starfish Space
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