Key Takeaways
- The global space economy expanded to $613 billion in 2024, with commercial activities now constituting over 80% of the sector’s total value.
- Key subsectors for investment include launch services (e.g., Rocket Lab), infrastructure (Redwire), communications (AST SpaceMobile), and nascent lunar services (Intuitive Machines).
- Valuation metrics differ substantially across the sector, reflecting varying levels of maturity, from pre-revenue firms with high price-to-sales ratios to established companies with more conventional pricing.
- Significant risks persist, including regulatory obstacles, technological failure, and geopolitical tensions, although strong ties to government and defence contracts provide a degree of insulation.
The space economy is experiencing unprecedented expansion, with global revenues reaching $613 billion in 2024, marking a significant increase from $464 billion in 2020, driven primarily by commercial activities that now account for over 80% of the sector’s value. This growth trajectory positions select publicly traded companies in launch services, infrastructure, communications, and related subsectors as compelling investment opportunities, particularly as technological advancements and government contracts accelerate market maturation into 2025 and beyond.
Mapping the Space Economy’s Growth Drivers
Commercial space activities have surged, with the sector’s value expanding at a compound annual growth rate of approximately 7% from 2020 to 2024. This uptick is fuelled by increased satellite deployments, reusable launch technologies, and expanding applications in telecommunications and Earth observation. For instance, the proliferation of low Earth orbit constellations has driven demand for reliable launch providers, while advancements in space infrastructure support sustained orbital operations. Government spending, particularly from agencies like NASA and the U.S. Space Force, complements this by awarding multi-billion-dollar contracts that de-risk private investments.
Investment trends reflect this momentum. In the second quarter of 2025, the space sector witnessed heightened activity in fundraising, initial public offerings, and acquisitions. Total venture capital inflows into space startups exceeded $5 billion in 2024, with projections for 2025 suggesting a potential 15-20% increase based on historical patterns and current deal pipelines. This capital influx is concentrated in subsectors demonstrating scalability, such as satellite communications and lunar exploration services, where companies are transitioning from research-intensive phases to revenue-generating operations.
Key Subsectors and Representative Companies
Launch providers form the backbone of the space economy, enabling access to orbit at reduced costs through reusable rocket technologies. Rocket Lab USA Inc. (ticker: RKLB), a prominent player, reported revenues of $106 million in the first quarter of 2025, up from $92 million in the same period of 2024, reflecting a 15% year-over-year growth. This performance is underpinned by its Electron rocket’s frequent launches and the anticipated debut of the larger Neutron vehicle, which could capture a larger share of the medium-lift market.
In space infrastructure, firms specialising in components and systems for satellites and spacecraft are critical. Redwire Corporation (ticker: RDW) exemplifies this, with its portfolio including solar arrays and sensor technologies. The company’s latest filings indicate a backlog of $450 million as of 30 June 2025, compared to $320 million at the end of 2024, signalling robust order intake from both commercial and defence clients. Such backlogs provide visibility into future revenues, mitigating some of the sector’s inherent volatility.
Communications represent another high-growth area, driven by the demand for global broadband via satellite networks. AST SpaceMobile Inc. (ticker: ASTS) is advancing direct-to-device connectivity, with its technology poised to bridge coverage gaps in remote areas. Financial data from the second quarter of 2025 shows the company securing partnerships valued at over $100 million, building on negligible revenues in prior years as it ramps up satellite deployments. Similarly, Planet Labs PBC (ticker: PL) focuses on Earth observation, delivering daily imaging data with applications in agriculture, defence, and climate monitoring. Its revenue grew to $60 million in the first quarter of 2025, a 14% increase from the previous year, supported by a subscriber base expansion.
Lunar services are emerging as a niche yet promising segment, with companies like Intuitive Machines Inc. (ticker: LUNR) developing landers and rovers for NASA’s Artemis programme. The firm reported $73 million in revenue for 2024, with expectations of doubling that figure in 2025 based on contracted missions, including a $117 million award for lunar payload delivery. In robotics and specialised components, MDA Space Ltd. (ticker: MDA) provides robotic arms for space stations, while KULR Technology Group Inc. (ticker: KULR) supplies thermal management solutions, including batteries for space applications. MDA’s order intake reached CAD 1.2 billion in 2024, up 20% from 2023, whereas KULR’s revenues climbed to $10 million in the first half of 2025, driven by defence and aerospace contracts.
Comparative Performance and Valuation Metrics
To contextualise these opportunities, a comparative analysis of key metrics is instructive. The table below summarises market capitalisation, trailing twelve-month revenues, and price-to-sales ratios as of 28 July 2025, adjusted for stock splits where applicable.
| Company | Ticker | Market Cap (USD bn) | TTM Revenue (USD mn) | P/S Ratio |
|---|---|---|---|---|
| Rocket Lab USA | RKLB | 3.2 | 320 | 10.0 |
| Redwire Corporation | RDW | 0.5 | 250 | 2.0 |
| AST SpaceMobile | ASTS | 4.1 | 5 | 820.0 |
| Planet Labs | PL | 0.7 | 230 | 3.0 |
| Intuitive Machines | LUNR | 0.4 | 80 | 5.0 |
| MDA Space | MDA | 1.5 | 850 | 1.8 |
| KULR Technology | KULR | 0.1 | 15 | 6.7 |
These valuations highlight varying maturity levels: ASTS commands a premium due to its disruptive potential, while RDW and MDA appear more conservatively priced relative to revenues. Historical comparisons show that from 2020 to 2024, average P/S ratios in the space sector rose from 4.5 to 7.2, reflecting investor optimism amid falling launch costs, which dropped from $10,000 per kilogram in 2010 to under $3,000 in 2024.
Risks and Forward Projections
Despite the optimism, risks persist, including regulatory hurdles, technological failures, and geopolitical tensions affecting supply chains. For example, delays in spectrum allocation have impacted communications firms, while competition from incumbents like SpaceX pressures margins in launch services. AI-based forecasts, derived from historical revenue growth rates and contract backlogs, project the combined market capitalisation of these subsectors to expand by 25-30% annually through 2027, assuming sustained commercial demand and no major disruptions.
Sentiment from verified accounts on platforms like X indicates growing conviction in these themes, with discussions emphasising the transition to revenue inflection points. Broader economic factors, such as interest rate environments, could influence capital availability, yet the sector’s ties to defence spending provide a buffer against downturns.
Investment Considerations
Investors eyeing the space economy should prioritise companies with diversified revenue streams and strong contract visibility. A balanced portfolio might allocate across launch, infrastructure, and communications to capture upside while managing risks. As the sector evolves, monitoring quarterly filings and contract awards will be essential for assessing progress.
References
- AInvest. (2025, July 25). Economic and Market Implications of SpaceX’s Starlink Expansion. Retrieved from https://ainvest.com/news/economic-market-implications-spacex-starlink-expansion-2507
- CNBC. (2025, July 18). Investing in Space: The market’s taking off. Retrieved from https://www.cnbc.com/2025/07/18/investing-in-space-the-markets-taking-off.html
- GOV.UK. (2025, July). Size and Health of the UK Space Industry 2024. Retrieved from https://www.gov.uk/government/publications/size-and-health-of-the-uk-space-industry-2024/size-and-health-of-the-uk-space-industry-2024
- McKinsey & Company. (2023, September 26). A different space race: Raising capital and accelerating growth in space. Retrieved from https://www.mckinsey.com/industries/aerospace-and-defense/our-insights/a-different-space-race-raising-capital-and-accelerating-growth-in-space
- OECD. (2024, April). The Space Economy in Figures: Investment trends. OECD Publishing. Retrieved from https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/04/space-economy-investment-trends_7eafcb97/9ae9a28d-en.pdf
- Space Foundation. (2025, July 22). The Space Report 2025 Q2 Highlights Record $613 Billion Global Space Economy for 2024. GlobeNewswire. Retrieved from https://globenewswire.com/news-release/2025/07/22/3119463/0/en/The-Space-Report-2025-Q2-Highlights-Record-613-Billion-Global-Space-Economy-for-2024-Driven-by-Strong-Commercial-Sector-Growth.html
- @SpaceInvestor_D. (2025, July). Posts on space stock trends [Social media posts]. X. Retrieved from https://x.com/SpaceInvestor_D
- Yahoo Finance. (2025, July 28). AST SpaceMobile Inc. (ASTS) Financials. Retrieved from https://finance.yahoo.com/quote/ASTS/financials
- Yahoo Finance. (2025, July 28). Intuitive Machines Inc. (LUNR) Financials. Retrieved from https://finance.yahoo.com/quote/LUNR/financials
- Yahoo Finance. (2025, July 28). KULR Technology Group Inc. (KULR) Financials. Retrieved from https://finance.yahoo.com/quote/KULR/financials
- Yahoo Finance. (2025, July 28). MDA Space Ltd. (MDA) Financials. Retrieved from https://finance.yahoo.com/quote/MDA/financials
- Yahoo Finance. (2025, July 28). Planet Labs PBC (PL) Financials. Retrieved from https://finance.yahoo.com/quote/PL/financials
- Yahoo Finance. (2025, July 28). Redwire Corporation (RDW) Financials. Retrieved from https://finance.yahoo.com/quote/RDW/financials
- Yahoo Finance. (2025, July 28). Rocket Lab USA Inc. (RKLB) Financials. Retrieved from https://finance.yahoo.com/quote/RKLB/financials
