The 12th edition of Novaspace’s Space Economy Report notes the global space economy is now on a significant growth trajectory, positioned to expand from $626.4 billion in 2025 to $1.01 trillion by 2034, a significant 12% 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. Defense 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 programs. ” says 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 optimization.
The space economy is increasingly being shaped by the impacts of sector maturation, improved financing, and the progressive softwarization of space infrastructure. 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.
About the Report
Novaspace’s Space Economy Report provides a comprehensive 360° view of the trends, challenges, and opportunities shaping today’s dynamic space economy. Covering both upstream and downstream segments, the report distinguishes between core space market activities, directly tied to space infrastructure, and the broader ecosystem of space‑enabled services that rely on these capabilities. It highlights market dynamics, competitive shifts, key growth drivers, and selected applications across all major areas of the space economy
About Novaspace
Novaspace is a global leader in space consulting and market intelligence, formed through the merger of Euroconsult and SpaceTec Partners. This strategic move combines the distinctive strengths of both entities to significantly amplify our international presence and service capabilities. With over 40-year legacy of expertise in guiding public and private entities in strategic decision-making, Novaspace offers end-to-end consulting services, from project strategy definition to implementation, providing data-led perspectives on critical issues. Novaspace presents an expanded portfolio of services, featuring combined expertise in management and technology consulting, top-tier executive summits, and market intelligence. Trusted by 1,200 clients in over 60 countries, with offices strategically located in Bangalore, Brussels, London, Montreal, Munich, Paris, Singapore, Sydney, Tokyo, Toulouse, and Washington D.C.
Featured image credited to istock.com/yucelyilmaz
