The 12th edition of Novaspace’s Space Economy Report states the global space economy is now on a significant growth trajectory, positioned to expand from $626.4 billion (€525.3bn) in 2025 to $1.01 trillion by 2034, a significant 12 per cent CAGR. While growth continues to be supported by innovation, new business models, assertive government policies and expanding demand for satellite-enabled services, 2025 stands out as a structural inflection point, marking a transition from rapid expansion toward a more mature and structured space market.

The space market is positioned to expand from $236 billion in 2025 to $323 billion in 2034 with space-enabled solutions, such as PNT services, occupying a significant share of the space economy. Defence and sovereignty, however, have emerged as the dominant market drivers in 2025, a dynamic that is expected to persist well into the late 2020s.

“Government space spending reached $138 billion, driven primarily by security, sovereignty, and exploration programsmes,” said Jan Clarence Dee, Novaspace Senior Space Consultant. “These priorities are reshaping procurement models and reinforcing the potential for commercial actors in national space strategies.”

Private investment is also showing signs of recovery in 2025, reaching $9 billion and marking the largest annual increase since the 2021 investment peak. Capital flows were concentrated in late-stage companies, indicating continued access to funding for proven players, while investors remained cautious toward higher-risk early-stage ventures. With a total of 54 M&A transactions completed in 2025, and 16 additional deals pending, focus is on reflecting ongoing consolidation, vertical integration, and portfolio optimisation.

The space economy is increasingly being shaped by the impacts of sector maturation, improved financing, and the progressive softwarisation of space infrastructure, according to the report. Commercial activity reached new highs, government initiatives became more assertive, and technology continued to advance. Together, these dynamics position 2025 as a transition year laying the foundation for a more resilient, security-driven, and strategically aligned space economy as the industry moves forward.

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