The Space Economy in 2026: Where the Money Is Going

The Space Foundation puts the global space economy at a record $686 billion in 2025, and the World Economic Forum, in a 2024 report with McKinsey, projects it could reach $1.8 trillion by 2035 on a broader definition. But where exactly is the growth coming from?

Using data from SpaceNexus's Market Intelligence module, we've broken down the key segments driving this expansion.

Updated August 2026: Figures and company names in this piece have been refreshed. Notably, Starship Flight 13 released the first Starlink V3 satellites on a suborbital test flight in July 2026, and Maxar's Earth-observation business now operates as Vantor. Correction (September 24, 2026): an earlier version of this note said Starship had reached operational status; it has not. All 13 Starship flights to that date had been suborbital test flights, and the first planned orbital flight, Flight 14, was then targeted for no earlier than September 28, 2026, pending FAA approval. Update (September 28, 2026): Flight 14 flew on September 28 and became the first Starship to reach orbit, SpaceX reports; Starship remains in flight testing.

Satellite Services

Satellite services, including communications, Earth observation, and navigation, are among the largest parts of the space economy. Within this:

• Satellite broadband is a fast-growing sub-segment, driven by SpaceX Starlink (about 11,100 working satellites as of October 2026, per Jonathan McDowell), Amazon Leo (formerly Project Kuiper, 398 satellites launched by July 2026), and OneWeb.
• Earth observation demand is driven by climate monitoring, agriculture, and defense intelligence. Companies like Planet, Vantor (formerly Maxar), and BlackSky are expanding their constellations.
• Navigation services (GPS, Galileo, BeiDou) underpin downstream applications across transportation, agriculture, and logistics.

Launch Services: More Rockets, Lower Costs

There were over 320 orbital launch attempts in 2025. Key trends:

• SpaceX flew more than half of the world's orbital launches in 2025 (165 Falcon 9 flights), with Falcon 9 achieving aircraft-like reuse cadence
• Starship: still in flight testing (Flight 13 released the first Starlink V3 satellites on a suborbital test in July 2026, and on September 28, 2026 Flight 14 became the first Starship to reach orbit and deployed 26 of them, SpaceX reports), SpaceX says in its S-1 that it aims to cut the cost to reach orbit by 99% or more relative to the historical average
• New entrants like Rocket Lab (Neutron), Relativity (Terran R), and Blue Origin (New Glenn) are expanding the competitive landscape

Ground Equipment & Manufacturing

Satellite manufacturing and ground equipment are being reshaped by:

• Mass production of satellites (SpaceX says its Redmond factory averaged about 70 Starlink satellites per week from December 2025 to April 2026)
• Software-defined satellites that can be reprogrammed in orbit
• In-space manufacturing: companies like Varda Space and Space Forge are demonstrating commercial manufacturing in microgravity
• Ground segment modernization with cloud-based ground stations (AWS Ground Station, KSAT, Leaf Space)

Government Space Budgets

Government space spending reached $141 billion globally in 2025, with the U.S. government accounting for $78.3 billion (57%), according to the Space Foundation, through NASA (about $24.4B enacted for FY2026), Space Force (about $32B enacted for FY2026), and NRO/classified programs.

• Artemis program is driving lunar economy investment through the Human Landing System (SpaceX, Blue Origin), commercial lunar payload services and, since March 2026, NASA's south-pole Moon Base (the Gateway station was paused the same month)
• Space Force is rapidly increasing spending on resilient architectures, proliferated LEO constellations, and commercial space integration
• Commercial procurement is growing as agencies shift from cost-plus contracts to firm-fixed-price and commercial services

Venture Capital & Private Investment

Private space investment hit a record in 2025: Seraphim counted $12.4 billion over the twelve months to the end of 2025, surpassing the 2021 peak of $10.9 billion.

• Hot sectors: Earth observation AI, space-to-cloud data, in-orbit servicing, and debris remediation
• Maturing companies: Rocket Lab, Planet, and Spire Global are generating meaningful revenue post-SPAC
• Defense tech crossover: Defense-technology companies such as Anduril are expanding into space

Emerging Segments to Watch

• Space tourism: SpaceX has flown private crews (Polaris), while Blue Origin paused New Shepard flights in January 2026 to focus on its lunar program
• In-space logistics: Orbit Fab (refueling), Astroscale (debris removal), and Momentus (last-mile delivery)
• Cislunar economy: NASA CLPS missions, Intuitive Machines, and ispace are building the infrastructure for a permanent lunar presence
• Space-based solar power: Still early but receiving increasing government funding from ESA, JAXA, and China

How to Track It All

SpaceNexus's Market Intelligence module provides real-time tracking of space stocks, ETFs, funding rounds, and economic indicators. Combined with our 300+ company profiles and procurement intelligence, it's the most comprehensive view of the space economy available.

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