What is the latest update in the space economy?

Q4 2025 was the busiest quarter for space economy funding in over a year, with 11 deals bringing in $1.22 billion.

Major defense contracts reshaped the competitive landscape, while a Starlink debris event raised new questions about orbital safety.

We constantly update this blog post with the latest space economy developments, so bookmark it and check back regularly.

And if you want to better understand this new industry, you can download our pitch covering the space economy.

Summary table of the most important updates in the space economy

We define the space economy as the set of activities that design, build, launch and operate space infrastructure and sell services directly based on space data, signals or connectivity.

We include manufacturers, launch providers, satellite and constellation operators, ground-segment and mission-operations providers, and companies whose primary products are satellite communications, Earth observation or navigation services.

We exclude generic consumer devices, broad media and telecom platforms, and downstream industries where space technology is only one of many inputs (such as ride-hailing, logistics or finance that merely rely on satellite navigation or timing).

You can also get all the latest market news for the month here.

Piece of news	Category	Date	Source
U.S. Space Development Agency awards $3.5B for 72 missile-tracking satellites across 4 builders	Customer wins	Dec 19, 2025	SDA
SpaceX loses contact with Starlink satellite, creating debris in orbit	Failures	Dec 17, 2025	Reuters
Rocket Lab wins $816M prime contract to build missile-defense satellite constellation	Customer wins	Dec 19, 2025	Rocket Lab
Intuitive Machines to acquire satellite-maker Lanteris for $800M	M&A	Nov 4, 2025	Reuters
SpaceX completes Starship Flight 11, the last run before major upgrades	Product launches	Oct 13, 2025	SpaceX
Virgin Media O2 partners with Starlink to bring satellite-to-phone service to UK dead zones	Partnerships	Oct 30, 2025	Virgin Media O2
Kyivstar launches Starlink Direct to Cell in Ukraine, a European first	Product launches	Nov 24, 2025	VEON
Stoke Space raises $510M to scale manufacturing of fully reusable Nova rocket	Fundraisings	Oct 8, 2025	Stoke Space
Planet launches Pelican-5, Pelican-6, and 36 SuperDoves for expanded imaging capacity	Product launches	Nov 28, 2025	Business Wire
SpaceX Transporter-15 rideshare mission delivers 140 payloads to orbit	Product launches	Nov 28, 2025	SpaceX
U.S. Senate introduces Satellite Cybersecurity Act targeting commercial satellite defenses	Regulations	Dec 9, 2025	Congress.gov
Blue Origin hires former ULA CEO Tory Bruno to lead national-security launch business	People	Dec 26, 2025	Reuters

How is the space economy doing now?

How do we define the space economy?

We define the space economy as the set of activities that design, build, launch and operate space infrastructure and sell services directly based on space data, signals or connectivity.

We include manufacturers, launch providers, satellite and constellation operators, ground-segment and mission-operations providers, and companies whose primary products are satellite communications, Earth observation or navigation services.

We exclude generic consumer devices, broad media and telecom platforms, and downstream industries where space technology is only one of many inputs (such as ride-hailing, logistics or finance that merely rely on satellite navigation or timing).

This is also the definition we use in our report covering the space economy.

How big is the space economy in 2026?

We estimate the space economy is worth approximately $470 billion in January 2026, with commercial activities driving 78% of total revenue.

This is not a random guess, if you want to know how we have come up with this estimate, you can read our space economy size analysis here.

To put this in perspective, the space economy is roughly the same size as the global cloud infrastructure market and more than double the size of the cybersecurity market.

The space economy scores 70 out of 100 on maturity (still growing but with proven business models), 65 out of 100 on competitiveness (SpaceX dominates launch but other segments are more open), and 50 out of 100 on fragmentation (consolidated in launch, fragmented in Earth observation and analytics).

How fast will the space economy grow in the future?

We expect the space economy to grow at about 8% per year, which is faster than traditional aerospace but slower than high-growth tech sectors like cloud computing.

At this pace, the space economy should reach around $640 billion by 2030 and cross the $1 trillion mark around 2035 or 2036.

This growth rate sits between mature aerospace and defense (4-5% annually) and fast-moving cloud computing (15-20% annually), which makes sense for an industry transitioning from government-dominated to commercially-driven.

What does current funding activity look like in the space economy?

Our team, who continually updates our space economy pitch deck, is keeping a close eye on the market and tracking key signals.

One of those signals is fundraising activity across startups. Each month, we refresh this page with a list of startups of the space economy that have raised funding, and we also publish a quarterly analysis here.

Is funding momentum accelerating or cooling in the space economy these days?

Q4 2025 saw 11 deals totaling $1.22 billion, compared to just 2 deals and $387 million in Q3 2025, which means funding more than tripled quarter-over-quarter as investor interest surged.

Compared to Q4 2024 (4 deals, $444 million), Q4 2025 funding was 175% higher, showing strong year-over-year growth in space economy investment activity.

The average deal size in Q4 2025 was $111 million, down from $194 million in Q3 2025 but similar to Q4 2024's $111 million average. However, Q4 2025 had 5 deals above $50 million compared to just 2 in Q3 2025, showing that large rounds are becoming more common even as smaller deals also increased.

Which categories and business models are attracting capital in the space economy?

These categories and business models of the space economy are receiving important fundraising currently:

• Satellite manufacturing led all categories with $864 million across 5 deals, as investors bet that building satellites fast enough is the biggest bottleneck holding back the space economy.
• Launch providers captured $782 million, though this was heavily concentrated in Stoke Space's $510 million round for its fully reusable rocket.
• Space situational awareness is gaining traction, with Digantara raising $50 million to build surveillance satellites that track debris and other spacecraft.
• RF intelligence satellites attracted funding as HawkEye 360 closed a $150 million round for its space-based radio frequency sensing constellation.

The pattern is clear: investors are funding the infrastructure layer of the space economy, betting that manufacturing capacity and launch frequency are what will unlock the next wave of space applications.

Who's writing the most checks in the space economy?

These investors are being very active when it comes to fundraising in the space economy:

• Lux Capital was the most active investor with 4 deals, backing EnduroSat, Impulse Space, and Varda Space Industries across $591 million in total funding.
• Lightspeed Venture Partners and Altimeter Capital both doubled down on K2 Space, participating in its Series B and Series C rounds totaling $360 million.
• Founders Fund continued its tradition of backing SpaceX alumni, investing in both Impulse Space and Varda Space Industries.
• Upfront Ventures focused on enabling technologies, leading rounds for AnySignal (space radios) and Fortastra (orbital defense satellites).

The investor mix shows that both generalist tech VCs and specialized space funds are actively deploying capital, which suggests broad confidence in the space economy's growth trajectory.

Any big acquisitions or IPOs in the last three months in the space economy?

These are the big acquisitions and IPOs that happened recently in the space economy:

• Intuitive Machines announced an $800 million deal to acquire Lanteris Space Systems, combining a lunar mission company with a satellite factory to create a more vertically integrated space platform.

This acquisition shows that well-capitalized space companies are buying manufacturing capacity rather than building it from scratch, which could signal more consolidation ahead in the space economy.

How are companies in the space economy performing overall?

We are watching this market everyday, because we need to constantly update our pitch deck. Here is a couple of things we have noticed.

Are there any standout success metrics or financial results in the space economy?

Unfortunately, there hasn't been any standout success metrics or impressive financial results publicly announced during Q4 2025 in the space economy beyond the major contract wins we already covered.

Have there been any major partnerships in the space economy?

Yes, there were significant partnerships announced in the space economy during Q4 2025:

• Virgin Media O2 signed a multi-year partnership with Starlink to bring satellite-to-phone backup coverage to UK areas with poor cellular reception, branded as "O2 Satellite."
• Kyivstar launched Starlink Direct to Cell in Ukraine, making it the first commercial deployment of this technology in Europe and proving demand for resilient connectivity in challenging environments.

Both partnerships show that major telecom carriers are now taking satellite-to-phone connectivity seriously, which could open a huge new revenue stream for space economy companies.

Have there been any notable technology or infrastructure breakthroughs in the space economy?

Yes, there were important technology milestones in the space economy during Q4 2025:

• SpaceX completed Starship Flight 11, which was the last flight of the current vehicle version before major upgrades, bringing the company closer to routine super-heavy launches.
• Planet launched its Pelican-5 and Pelican-6 high-resolution imaging satellites along with 36 SuperDoves, significantly expanding its Earth observation capacity.
• SpaceX's Transporter-15 mission delivered 140 payloads to orbit, reinforcing rideshare as the default path to space for smaller satellites and startups.

These launches show that both heavy-lift and rideshare launch capacity continue to expand, making it easier and cheaper for space economy companies to get their hardware into orbit.

Have any companies restructured or shifted pricing or business model in the space economy?

There was one notable restructuring event in the space economy during Q4 2025:

• NASA's Jet Propulsion Laboratory laid off about 550 workers as part of a restructuring effort, affecting a core U.S. space hub that supports many civil space missions.

While JPL is a government lab rather than a commercial company, these cuts could ripple through the space economy supply chain as subcontractors and partners feel the effects of reduced program activity.

Are there any other notable wins or successes in the space economy?

Yes, there were major customer wins in the space economy during Q4 2025:

• The U.S. Space Development Agency awarded $3.5 billion for 72 Tracking Layer satellites, split across four teams who will each build 18 satellites for missile defense.
• Rocket Lab won an $816 million prime contract to build a missile-defense satellite constellation for the U.S. Space Force, the company's largest deal ever.
• ULA launched ViaSat-3 F2 on Atlas V, advancing next-generation GEO broadband capacity for aviation, maritime, and government connectivity customers.

These wins, especially Rocket Lab's contract, prove that newer space companies can now compete head-to-head with legacy primes for very large government awards.

What is the overall sentiment in the space economy right now?

Are there any notable recent opinion pieces, thought leadership about the space economy?

We did not find any notable opinion pieces worth mentioning during Q4 2025 in the space economy based on the news we tracked.

Are there any interesting and recent market research reports about the space economy?

Unfortunately, there were no notable new market research reports published during Q4 2025 in the space economy based on our data.

Have there been any regulatory changes, policy updates, or new compliance requirements in the space economy?

Yes, there was an important regulatory development in the space economy during Q4 2025:

• The U.S. Senate introduced the Satellite Cybersecurity Act (S.3404), which would establish cybersecurity guidelines and coordination requirements for commercial satellite operators.

This bill signals that cybersecurity is moving from "best practice" to "expected baseline" for the space economy, which will likely create new compliance costs but also new market opportunities for security-focused vendors.

Who is the author of this content?

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