Global investment in space technology is projected to rise in 2026 after a strong year fueled by government expenditure on defense-related systems and a renewed interest from the private sector in launch services, as reported by Seraphim Space and cited by Reuters. Investors foresee continuous funding growth driven by increased spending on sovereign satellite programs, missile defense systems, and the incorporation of artificial intelligence (AI) into space technology and data analysis. The potential future initial public offering (IPO) by SpaceX is also viewed as a potential catalyst for the industry.
Private investment in the space sector hit a record $12.4 billion in 2025, marking a 48 percent surge from the previous year, with $3.8 billion secured in the last quarter. This total surpassed the previous peak set in 2021, indicating a full recovery from the 2022 downturn and surpassing the broader venture capital market performance, according to the report.
Space infrastructure is increasingly being recognized as a critical national priority as governments vie for geopolitical and security advantages.
The United States led in funding, attracting $7.3 billion, which accounted for about 60 percent of global investment. This was primarily driven by significant investments in launch services and defense projects such as the Pentagon’s Golden Dome initiative. In December, President Donald Trump signed an executive order designating space as a core national security and economic priority, a move that investors believe will further bolster funding.
Meanwhile, growth in Europe was more restrained, though investment levels in Asia remained high. China contributed approximately $2 billion, emphasizing its accelerated development of domestic launch capabilities and satellite manufacturing.