Amid rapidly evolving technology in the space sector, Flinders University experts say there's a need for a new era in space regulation.

"While there are laws that cover space activities, they are already under stress because of the speed at which the commercial space industry is evolving," research associate Joel Lisk said.

"There is a need to work towards ensuring that we have broad and flexible regulatory settings that are geared to rapid change and future developments.

"Without these ambitious and progressive steps, we risk reducing commercial activity, lower levels of investment and society will miss out on the benefits that can be derived from this important sector."

The report found large corporations were moving rapidly to establish large-scale low-orbit deployments and provide services around the world.

In the five years to December 2019, the number of satellites orbiting earth increased by 77 per cent. In 2020, the number increased by a further 37 per cent to 3371.

SpaceX's Starlink system has approval from the US Federal Communications Commission for 12,000 satellites and the company is seeking authorisation for a further 30,000.

Flinders University's digital technology professor Melisssa de Zwart said issues of safety and sustainability were a real cause for concern

"We have heard about the possible Starlink debris falling to earth in regional NSW, and Russia's move to exit the International Space Station which is due to be retired after 20 years in space," she said.

"We also need to weigh up the risks against the advantages of opening up promising new low-cost channels of communication and connectivity, that could bring significant benefits to remote and financially disadvantaged communities."

As well as the management of capacity and debris, the report also pointed to other complex challenges including competition between operators in the low orbit sector, and the impact of satellites on astronomy.

Australian Associated Press