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Investment and consulting firm Space Capital reports that investment in space companies hit $26 billion in 2024, an increase of 30% year-over-year. The firm recently released its fourth quarter Space IQ report, with predictions for 2025. 

The $26 billion in investment in 2024 includes investment activity across a broad range of companies impacted by space, including infrastructure companies that build and launch satellites; distribution companies that manage data from space-based assets; and applications that use data from space-based assets. 

“It looks like 2023 was the bottom. We’re seeing some recovery and we’re getting back into a growth phase of the space economy which is great after a few tough years in the capital markets,” Managing Partner Chad Anderson said in a Thursday webcast discussing the report. 

During the fourth quarter of 2024, space infrastructure companies received $2 billion in investment. This was up 7% quarter-on-quarter, but 28% below the three-year average of $2.8 billion. 

Top infrastructure funding rounds in Q4 included Blue Origin’s self-capitalization of $500 million, Firefly Aerospace’s fundraising of $176 million, and The Exploration Company raising $160 million. 

“While lower, [infrastructure] funding shows signs of stabilization, consistently hovering around $2 billion. The continued demand for innovative, resilient infrastructure drives investor and government interest,” the report said. 

Anderson noted that there was a pickup in 2024 of investment in “emerging industries,” companies targeting space stations, lunar markets, on-orbit servicing, etc. This includes The Exploration Company, and rounds for space cargo company Inversion Space, and nuclear energy startup Antares. In the fourth quarter, Space Capital reported that 12 emerging industries companies raised $300 million.

“It makes up a small portion of the space economy — it now makes up 3% of total investment over the last 10 years,” Anderson said. “It’s a small piece, but it’s one of the more rapidly growing pieces of the puzzle.” 

Predictions for 2025 

Space Capital also issued predictions for space capital markets in 2025, looking at the political environment with the administration change, and an expected increase in defense spending. 

Anderson expects there to be a greater focus on promoting the space economy and integrating commercial capabilities into the U.S. government. While he expects Elon Musk to benefit from his close relationship with President Trump, he also said other companies can stand to benefit as well. 

“I think that SpaceX is the most likely beneficiary here,” Anderson said. “A lot of people are pointing to [Elon Musk’s] relationship with the incoming president, with the donations to the campaign [and] his status as ‘first buddy’ being the key driver. I think that is going to influence things and be a key factor here.” 

But Space Capital also expects SpaceX to face greater competition in 2025 in both launch and satellite connectivity from Blue Origin’s New Glenn rocket and Rocket Lab’s Neutron, and Amazon Kuiper looking to start operations in 2025. Anderson also said other companies can stand to benefit from an environment of more interest in the space economy and lower regulations. 

“I think that’s going to also benefit other companies outside of SpaceX, particularly those that are doing novel, new activities. There’s going to be some streamlining of regulation and making it easier for companies to try new things and bring new, novel capabilities online,” he said. 

Space Capital also predicts that both Boeing and Airbus to sell off their space businesses in 2025, and an acceleration in M&A in satellite communications to better compete with Starlink and Non-Geostationary Orbit companies (NGSO). 

“These divestitures by entrenched government contractors marks a pivotal moment in the space economy, as it changes the competitive landscape, establishes a new power broker system, and creates new opportunities and risks in the government’s extended capabilities in space,” the report says.