« Back to BLOGS

LATEST BLOG

Space investment more than doubled to $23 billion in year to June, report says

An evening launch of a SpaceX Falcon 9 rocket carrying 22 Starlink satellites to low-Earth orbit is seen over the Pacific Ocean from Encinitas, California, U.S., April 1, 2024. REUTERS/Mike Blake/File Photo Purchase Licensing Rights

Sept 23 (Reuters) - Private investment in space companies globally more than doubled to $23 billion in the year through June as the sector shifts toward proven businesses, according to British investment ​firm Seraphim and Relm Insurance on Wednesday.

SpaceX's (SPCX.O), June IPO has reshaped ​the funding landscape for the sector, drawing in new investors as ⁠venture firms look for the next space company capable of a similar ​payoff.

Investors are funneling capital toward companies that can show operational proof rather than ​early-stage promise, with the space economy moving from "hype to commercial reality", according to Relm Insurance.

It said the companies attracting capital include Earth observation (EO), in-orbit manufacturing and satellite supply chains.

"EO is already ​an established category — the tech is well established, if still improving," said ​Andrew Bonwick, Relm's VP of Product Development.

"The real value is in the analytics. Customers buying ‌these ⁠services don't think of them as space services — they're sold on what they actually want: where are my ships, when should I plant my crops, is that refinery switched on, where's at risk of wildfire."

Capital grew more selective ​toward Earth observation companies ​with visible ⁠revenue and experienced leadership, the report said.

Global space investments hold steady near record highs

SpaceX's mega-IPO has increased investor interest in the sector, bringing more funding

In-orbit manufacturing is still in its early days, held back by limited ways to ​launch and bring products back to Earth, with some ​companies merging ⁠while others struggle to grow beyond small pilot projects.

Satellite supply chains have grown more complicated as production increases, pushing companies to bring more of their manufacturing in-house ⁠to ​control costs and reduce reliance on outside suppliers.

Traditional ​insurance policies often don't fit these smaller, experimental space projects, creating demand for new types of ​coverage, the report said.

Frequently Asked Questions

  • What are the projected market valuations for satellite services in MEASA by 2032?

      Forecasts vary by methodology. Roughly speaking, you can expect high single-digit CAGR through 2032. Growth concentrates in mobility, government services, and data analytics. The Satellite Industry may see value shift from raw bandwidth to packaged solutions with SLAs and compliance tooling. Treat headline numbers as directional and stress test against spectrum and launch availability.

  • Which countries lead satellite technology adoption in the MEASA region?

      The UAE leads on policy speed and integrated funding. Saudi Arabia scales national programmes across education and media. South Africa contributes engineering depth and ground expertise. Kenya and Ethiopia show momentum in EO applications. India, while adjacent, influences supply chains and software. You should track cross-border corridors where gateways and fibre meet.

  • How do D2D satellite services differ from traditional satellite connectivity?

      D2D reaches standard smartphones without specialised terminals. Traditional links require VSATs or aviation and maritime antennas. D2D focuses on messaging first and later voice or broadband as link budgets improve. For you, this expands addressable markets and simplifies customer onboarding. It also shifts value from hardware to software and partnerships with mobile networks.

  • What role does AI play in modern satellite operations?

      AI automates planning, anomaly response, and payload tasking. You gain higher utilisation, faster response, and fewer manual interventions. Ground AI clusters telemetry and flags risk before outages. Onboard models filter data and prioritise downlinks. The outcome is measurable: better uptime and lower OPEX across the Satellite Industry.

  • Which orbital configurations offer the best latency for MEASA communications?

      LEO delivers the lowest latency for interactive services. MEO offers a balance for navigation and regional broadband. GEO maintains consistent performance for broadcast and backhaul. The optimum solution is often multi-orbit, with policy routing that matches application needs. Choose latency targets first, then select orbit and capacity accordingly.

BOOK YOUR STAND