Space Economy

The space economy is the business of building, launching, and operating spacecraft, plus the services delivered from orbit. It splits into an upstream segment that makes rockets and satellites and a downstream segment that sells data and connectivity off them. This pillar maps the U.S.-listed companies turning a roughly $613 billion market into a projected $1.8 trillion one.

Key takeaways
  • The space economy is the business of building and launching space hardware (the upstream segment) and selling services off satellites already in orbit (the downstream segment); this pillar maps the U.S.-listed companies in both.
  • The global space economy reached about $613 billion in 2024, up 7.8% year-over-year with the commercial sector now roughly 78% of the total, and is projected to roughly triple to $1.8 trillion by 2035, faster than global GDP.
  • Launch cadence is the clearest sign of acceleration: 4,510 objects were launched into space in 2025, up from the prior record of 2,903 in 2023.
  • Representative U.S.-listed names span upstream (Rocket Lab, Intuitive Machines, Redwire, Firefly, Karman) and downstream (AST SpaceMobile, Planet Labs, Globalstar, EchoStar).

What is the space economy?

For decades space was a government program, run by a handful of agencies and the primes that served them. The shift is that it is now a commercial market, and an investable one. The Space Foundation put the global space economy at about $613 billion in 2024, up 7.8% year-over-year, with the commercial sector now roughly 78% of the total (Space Foundation). Most of the money is already private rather than public spending, which is why a growing list of pure-play companies now trade on U.S. exchanges. Buying the theme no longer means buying a defense conglomerate where space is a rounding error; the pure-plays are listed on their own.

The market is split in two. Upstream space designs and builds the hardware and the rockets that carry it up; it led the market with about a 31.2% share in 2025 (Global Market Insights). Downstream space uses satellites already in orbit to sell connectivity, imagery, and positioning. The two halves earn money very differently, and an investor should know which one a stock sits in.

Why is the space economy growing now?

Two things changed: launch got cheap, and demand for what satellites deliver went up. Launch costs have fallen 10-fold over the past 20 years, while the number of satellites launched per year has grown at a 50% rate (World Economic Forum). On that base, a World Economic Forum and McKinsey study projects the space economy will roughly triple from $630 billion in 2023 to about $1.8 trillion by 2035, growing near 9% a year, almost twice the pace of global GDP and rivaling the reach of the semiconductor industry (World Economic Forum). The activity backs that up: 4,510 objects were launched into space in 2025, up from the prior record of 2,903 in 2023 (Yale Environment 360).

Space technologies are delivering greater value to a more diverse set of stakeholders than ever before, including in industries as varied as food and beverage, retail, consumer goods and lifestyle, supply chain and transportation, and even climate disaster mitigation.

— Sebastian Buckup, World Economic Forum (WEF)

How do the Space Economy clusters fit together?

The hub of this pillar is the U.S. Space Tech concept, and its securities split along the upstream-downstream line. Upstream, Rocket Lab is the launch workhorse, flying a company-record 21 Electron missions in 2025, though its larger Neutron rocket has slipped to late 2026, a reminder that upstream timelines move (Via Satellite). Firefly Aerospace became the first commercial company to fully soft-land on the Moon in 2025, under a roughly $93 million NASA CLPS task order (Firefly Aerospace), with Intuitive Machines chasing the same lunar market. Redwire builds spacecraft components, Karman Holdings supplies launch and missile hardware, and Voyager Technologies works on space infrastructure including a commercial station. Downstream, AST SpaceMobile connects ordinary phones to satellites and holds deals with more than 50 mobile operators reaching nearly 3 billion subscribers (AST SpaceMobile, SEC filing), while Planet Labs sells Earth imagery, and Globalstar and EchoStar run satellite communications networks. Government demand still matters across both halves: NASA’s Commercial Lunar Payload Services program hires private landers to carry science to the Moon, and it is the contract pipeline behind both Firefly and Intuitive Machines (NASA). The upstream space and downstream space glossary entries define the split.

Explore this theme

Which concepts explain this theme?

Which companies validate the thesis?

Which terms need disambiguation?

What should be compared side by side?

How can investors access Space Economy?

The U.S. Space Tech concept covers the listed leaders across both segments. The Akros U.S. Space Tech Index is tracked by the TIGER US Space Tech ETF, a Korea-listed fund from Mirae Asset. Holding both halves matters: the upstream names are priced on launches and program milestones, while the downstream names are priced on subscribers and recurring revenue, so the basket pairs the firms that put assets in orbit with the firms that earn money from them once they are there.

These references describe index-tracking relationships as a matter of fact and are not a recommendation to buy any product. Akros, as the index provider, may receive licensing fees from product sponsors. Review the product's prospectus before investing.

What are the risks of Space Economy?

This is one of the higher-risk corners of the market. Many of these companies are early, unprofitable, and cash-hungry, and a single launch failure or slipped program can move a stock hard; Intuitive Machines’ 2025 Athena lander tipped over and lost power early. Government contracts and spectrum decisions matter as much as engineering, pre-profit names raise capital often and dilute holders when programs slip, and valuations often price years of growth that has not arrived yet. The investable universe is also small and concentrated, so a few stocks drive the whole theme. Size the exposure accordingly.

Frequently asked questions

What is the space economy?

The space economy is the full set of businesses that build, launch, and operate spacecraft and that sell products and services derived from space. It is usually split into an upstream segment (rockets, satellites, spacecraft) and a downstream segment (communications, Earth observation, navigation). It reached about $613 billion in 2024 (Space Foundation).

How big is the space economy and how fast is it growing?

The space economy was roughly $613 billion in 2024 (Space Foundation) and is projected to reach about $1.8 trillion by 2035, around 9% a year (World Economic Forum).

What is the difference between upstream and downstream space?

Upstream space designs and builds the hardware (rockets, satellites, spacecraft) and the launch that puts it in orbit. Downstream space uses infrastructure already in orbit to sell services such as connectivity, imagery, and positioning. The two segments have very different economics and risk profiles.

How can you invest in the space economy?

Most listed exposure is through individual U.S.-listed companies across launch, satellites, and space services, grouped in the U.S. Space Tech concept. The Akros U.S. Space Tech Index is tracked by the TIGER US Space Tech ETF, a Korea-listed fund. Always check fees, holdings, and risk before investing.

Is the space economy still mostly government spending?

No. The commercial sector made up roughly 78% of the $613 billion global space economy in 2024 (Space Foundation). The shift was driven by cheaper access: launch costs have fallen 10-fold over the past 20 years while satellites launched per year grew at a 50% rate (World Economic Forum).

Sources & references

  1. The Space Report 2025 Q2: Record $613 Billion Global Space Economy · Space Foundation, 2025-07-22
  2. Space Economy Set to Triple to $1.8 Trillion by 2035 · World Economic Forum, 2024-04-08
  3. Record Number of Objects Launched Into Space Last Year · Yale Environment 360, 2026-01-15
  4. Space Economy Market Size, Share & Forecast · Global Market Insights, 2025-10-01
  5. Rocket Lab Hits Record Revenue in '25, But Delays Neutron to Late '26 · Via Satellite, 2026-02-27
  6. Firefly Aerospace Becomes First Commercial Company to Successfully Land on the Moon · Firefly Aerospace, 2025-03-02
  7. AST SpaceMobile Quarterly Results (Form 8-K Exhibit 99.1) · AST SpaceMobile / SEC, 2025-08-11
  8. Space: The $1.8 Trillion Opportunity for Global Economic Growth · World Economic Forum, 2024-04-08
  9. NASA Selects Intuitive Machines to Deliver Artemis Science, Tech to Moon · NASA, 2025-01-01