A $1.8 Trillion Global Opportunity: Why It Might Not Be ‘Out of This World’ to Include Space Stocks in Your 2025 Portfolio

The space industry is undergoing rapid transformation, evolving from a government-dominated sector into a thriving commercial marketplace with vast economic potential. Once primarily driven by national space agencies, the industry is now being shaped by private investment, technological innovation, and a surge in commercial applications. Analysts project that by 2035, the global space economy could reach $1.8 trillion, more than triple its current size, fueled by advancements in satellite technology, deep-space exploration, and space-based infrastructure.

As the ‘space’ continues to grow, emerging companies looking to capitalize on the new and expanding opportunity are exploring the space industry and establishing themselves as ‘first movers’ who may have a competitive advantage against new entrants as the industry evolves. PRISM MarketView has launched its PRISM Emerging Space Index to track these smaller companies who are blasting off in the sector.

The New Space Race

The falling cost of launching payloads into orbit, thanks to reusable rocket technology and miniaturized satellites, has opened the door for private companies to take a leading role in space activities. Companies such as SpaceX, Blue Origin, and Rocket Lab (RKLB) are pioneering more cost-effective launch solutions, reducing the barriers to entry for businesses looking to leverage space-based technologies. This has led to a surge in satellite deployments supporting industries such as telecommunications, climate monitoring, and defense.

Venture capital and private equity have flooded into the space sector, with funding reaching record levels. The commercialization of space is also attracting non-traditional players, including tech giants and manufacturing firms, eager to capitalize on the growing demand for satellite internet, Earth observation, and autonomous navigation services.

The Expanding Space Economy: Emergers in Key Growth Areas

Several critical sectors are expected to drive the space economy’s expansion over the next decade:

• Satellite Services & Connectivity: High-speed, space-based internet is set to transform global communications, with satellite constellations enabling broader access to underserved regions. Companies like Starlink and OneWeb are leading this effort.

Two companies focused on satellite and connectivity services in space are Comtech Telecommunications Corp. (CMTL) and AST SpaceMobile, Inc. (ASTS). Comtech is a leading provider of advanced communications solutions, specializing in satellite and terrestrial network technologies for commercial and government applications. The company delivers cutting-edge products and services in secure wireless communications, satellite-based networking, cybersecurity, and location-based services. Recently the company provided Q1 financial results that included objectives to be implemented for a turnaround. AST SpaceMobile is a pioneering satellite communications company focused on building the first space-based cellular broadband network. The company aims to provide seamless mobile connectivity directly to standard smartphones worldwide, eliminating the need for specialized satellite phones or additional hardware. Recently, the company announced an FCC grant of Special Temporary Authority (STA) in the US with strategic partners, AT&T (T) and Verizon (VZ).

• Earth Observation & Climate Monitoring: Satellites provide critical data for tracking environmental changes, natural disasters, and resource management, playing a vital role in climate resilience efforts.

A leading provider of space-based data, analytics, and intelligence solutions, Spire Global, Inc. (SPIR) utilizes its constellation of low Earth orbit (LEO) satellites to collect and deliver real-time data for weather forecasting, maritime and aviation tracking, and Earth observation. Recently, Spire was selected by data and analytics company, LatConnect60 to improve sustainable agriculture practices in which LatConnect intends to leverage Spire’s reflectometry data to provide daily soil moisture insights to governments, commercial organizations, farmers and more.

• Space Manufacturing & Resource Utilization: Advances in microgravity research are unlocking new possibilities in pharmaceuticals, semiconductor production, and advanced materials, while asteroid mining remains a long-term possibility.

While many microgravity research companies remain private there is a semiconductor company who is designing and developing advanced connectivity solutions. Mobix Labs, Inc. (MOBX) caters to a wide variety of industries including aerospace providing high performance radio frequency and mixed signal solutions. While its focus is on connectivity, its ties to semiconductor expertise could widen its offering potential into this space. Regardless, Mobix may be worth keeping on your watchlist as the company recently announced its second acquisition in 60 days of SCP Manufacturing, launching its presence in the aerospace and defense industries.

• Space Tourism & Habitats: Companies such as Blue Origin and Virgin Galactic are spearheading commercial space tourism, while projects like orbital stations and lunar habitats are gaining momentum.

Redwire Corporation (RDW) is a leading space infrastructure and innovation company providing cutting-edge solutions for space exploration, satellite manufacturing, and on-orbit servicing. Recently, Virgin Galactic announced a manufacturing partnership with Redwire to manufacture the research payload lockers that will travel aboard Virgin Galactic’s new Delta-Class spaceships.

• Defense & Security: Governments worldwide are increasing investments in space-based defense capabilities, ensuring security in an era where satellite infrastructure is critical to military operations.

The real-time geospatial intelligence company, BlackSky Technology, Inc. (BKSY) delivers high-frequency satellite imagery and AI-driven analytics. By utilizing its constellation of low Earth orbit (LEO) satellites, BlackSky provides rapid monitoring and insights for defense, government, and commercial sectors. Recently, the company won a new contract for more than $100M from a strategic international defense sector customer for Gen-3 real-time, space-based monitoring capabilities.

Houston, There May Be Challenges

Despite the promising trajectory, the space economy faces challenges, including regulatory uncertainty, sustainability concerns related to space debris, and the high costs of infrastructure development. Addressing these issues will require international collaboration, innovative policy frameworks, and continued advancements in cost-efficient technology.

Going Infinity and Beyond

As space becomes an integral part of the global economy, businesses and governments must recognize its strategic importance. The potential for economic growth, innovation, and societal benefits is immense. With continued investment and innovation, the space industry is poised to become one of the most dynamic and lucrative frontiers of the 21st century, driving progress in technology, connectivity, and sustainability on a global scale.