- The space sector is projected to reach a value of $1,8 trillion by 2035, driven by reduced launch costs and private innovation.
- The value chain is divided into upstream (infrastructure), midstream (operators) and downstream (services and applications on land).
- There are various investment options ranging from individual stocks and specialized ETFs to actively managed funds focused on defense and technology.
You've probably heard about the space craze lately, and for good reason. What once seemed like the exclusive domain of NASA or the former USSR has now become a financial battleground where private companies are calling the shots. We're no longer just talking about planting flags on the moon, but about a vibrant economic ecosystem that is transforming the way we connect with and understand our own planet.
If you're considering investing in this sector, the first thing you should know is that it's not just a passing fad or a narrative to attract capital. We're dealing with a mature and diversified industry that encompasses everything from manufacturing ultra-durable microchips to managing massive amounts of data using artificial intelligence. The key here isn't simply chasing the next big thing, but understanding where real profitability is generated within a highly complex value chain.
The size of the pie: How much is space really worth?
To put things in perspective, the figures are simply astronomical. According to recent data, the sector's value reached $613.000 billion in 2024. But what's really keeping fund managers up at night is the long-term projection: the space economy is estimated to reach $1,8 trillion by 2035 , growing at an annual rate of nearly 10%, which is almost double the rate of global GDP growth.
The most curious thing is that the bulk of this growth will not come from the launches themselves, but from the services enabled by space technology. It is estimated that 72% of the future market will belong to innovative segments such as space cybersecurity, satellite broadband, and in-orbit manufacturing , leaving behind the legacy economy based on traditional satellite television.
The value chain: From takeoff to final application
To avoid flying blind, it's crucial to understand that the business is divided into three levels. First, we have upstream , which is basically the infrastructure: the rockets that launch things, satellite manufacturing, and propulsion systems. This is where SpaceX dominates, controlling a massive portion of global launches.
Next, we move on to the midstream , where satellites already in orbit operate, whether in low Earth orbit (LEO) or geostationary orbit. And finally, we arrive at the downstream , which is where the magic happens on Earth. We're talking about global connectivity, GPS navigation, and Earth observation, which allows us to do everything from predicting forest fires to optimizing precision agriculture.
A disruptive factor has been the LEO satellite revolution . By orbiting much closer, latency has dropped dramatically and launch costs have plummeted, making services that were once prohibitively expensive now profitable for the mass market.
Key players and where to focus your attention
When we talk about companies, SpaceX is the star, but being mostly privately held, access for retail investors is limited. However, there are other very strong publicly traded options. Rocket Lab has positioned itself as the most viable alternative in the US, offering comprehensive launch and manufacturing services. On the other hand, Planet Labs leads the way in Earth observation, providing critical data for governments and businesses.
Looking towards Europe, the picture is different but very interesting. Here we have a more discreet but strategic ecosystem. Companies like Avio in Italy or giants like Airbus and Thales are building European space sovereignty that the market often undervalues. While some American companies trade at very aggressive multiples, in Europe you can find valuations that are much more reasonable relative to their estimated sales.
Nor can we forget the role of defense. Global rearmament and the creation of the US Space Force have driven up public sector budgets . Companies like Palantir and Kratos Defense directly benefit from multi-million dollar government contracts for the surveillance and protection of orbital assets.
Financial instruments for entering the sector
If you don't want the hassle of choosing individual stocks, there are vehicles specifically designed for this purpose. Thematic ETFs , such as the VanEck Space Innovators ETF, allow you to diversify risk by exposing you to a basket of innovative companies under UCITS regulations for European investors.
For those who prefer a more active approach, there are investment funds like Echiquier Space , which carefully select around 30 stocks based on the managers' convictions. These funds typically focus on pure technology, radiation-resistant semiconductors, and major defense contractors, adapting to political and budgetary cycles.
Risks you can't ignore
Not everything is rosy in the cosmos. The first major risk is valuation volatility ; some companies are trading based on promises of future growth that have not yet materialized into actual profits. A shift in market sentiment could severely punish the most expensive stocks.
Furthermore, there is a heavy reliance on public contracts . If a government decides to cut exploration or defense spending, many of these companies would see their revenues plummet. Added to this is the problem of space debris , which could render low Earth orbit uninhabitable if strict regulations for cleanup and recycling are not established.
Finally, geopolitics plays a decisive role. Competition with China adds a layer of uncertainty regarding the trajectory of demand and the security of supply chains for critical materials, such as rare earth elements, where Asia maintains almost total hegemony.
The space economy has ceased to be a fantasy and has become a real asset with a complex structure. From asteroid mining and suborbital tourism to the invisible infrastructure that powers our mobile phones, value is distributed across a highly heterogeneous chain. The winning strategy is not to buy space blindly, but to select with discipline which part of this ecosystem offers the best long-term risk-return ratio.