Space economy expands as Rocket Lab secures funding for Iridium acquisition

The global space economy is seeing significant growth, driven by both massive public investment and expanding commercial markets. According to the European Space Agency, global public investment in the sector reached 119 billion euros last year. While the upstream market for spacecraft manufacturing and launch services is valued at 75 billion euros, the downstream market—including satellite communications and Earth observation—was valued at approximately 490 billion euros in 2025.

OECD reports indicate that space-based systems now support more than half of the critical infrastructures in OECD countries, including energy grids, transport, and food supplies. While the US and China currently dominate rocket production and launch services, the strategic importance of the sector continues to rise.

In the commercial sector, Rocket Lab has completed a $1.94 billion equity offering to fund its proposed acquisition of Iridium Communications. The deal, which aims to combine Rocket Lab’s launch and manufacturing capabilities with Iridium’s global satellite network, is expected to close in mid-2027, pending regulatory approval.