Global space economy growth and investment

The space industry is experiencing significant growth driven by advancements in satellite technology, lower launch costs, and increasing demand across commercial and defense sectors.

Initial projections from Goldman Sachs highlighted the potential for long-term growth in space-related equities as the industry expands into orbital broadband, communications, and defense applications. While analysts warned of high valuations and price volatility, a custom basket of U.S. space and satellite stocks showed strong performance, outperforming the S&P 500.

Subsequent reports indicate the global space economy is undergoing a structural shift from a government-led prestige sector to a major industrial pillar. Goldman Sachs projects the industry will reach $1.8 trillion by 2035, fueled by advancements in communications, defense, AI, and logistics. SpaceX CEO Elon Musk has suggested the actual scale of this boom will be ‘much bigger’ than current forecasts.

Growth is supported by a dramatic reduction in launch costs—dropping from $65,400 per kilogram in 1981 to approximately $1,500 today through reusable rockets—and a surge in private investment. The sector attracted over $55 billion in 2025, with a record $36 billion invested in the first quarter of 2026 alone.

Defense spending remains a primary driver as geopolitical tensions increase the importance of sovereign space capabilities. For instance, Germany has committed €35 billion to space-related defense through 2030. However, this rapid expansion introduces regulatory challenges regarding mission approvals and orbital activities managed by various international and U.S. agencies.