Space is having its internet moment. Investors should act accordingly.

In the 1990s, the internet stopped being a novelty and started to resemble what it is today. The release of the Mosaic browser in 1993 made the web usable for ordinary people. Amazon listed on Nasdaq in 1997. And by 2000, Cisco briefly became the most valuable company in the world. The bubble later burst — but the networks that had been built did not disappear. The internet began to underpin trade, security and everyday life. Some investors saw what was happening. They invested once the networks were widely used, the rules were settled and customers were paying every month or signing long contracts. They did not wait for the technology to be perfect but for demand to steady.

Space has been moving in this direction for some time. It was already large and already attractive to investors. But as launch frequency has increased, large satellite fleets have reached full operation and more companies have begun to earn steady service revenue, its role as a working network has become harder to ignore.

For years, investing in space had meant backing one rocket, satellite or government mission at a time. Each project was built to order and, if it failed, the money was gone. Returns, therefore, depended on a small number of big bets — often tied to defense or national space agencies — paying off. And that picture is what has changed. There are now more than 14,000 active satellites in orbit, according to industry counts; and rockets launch somewhere in the world almost every day. Companies like SpaceX send up batches of satellites at once, and constellations such as Starlink provide ongoing internet service to paying customers. Space is less about standalone spacecraft and more about fleets working together.

Connectivity, Earth observation, navigation, secure communications — all of these essential services now operate unceasingly. Satellite broadband connects remote homes, aircraft and ships at sea. Earth observation companies capture, fuse, process and sell imagery and insights to insurers, energy traders and agricultural bodies who use it to track storms, crops and infrastructure. Navigation systems like the Global Positioning System guide planes, container ships and delivery fleets every day. Governments and armed forces use secure satellite links for routine communications, not special occasions. Customers pay monthly fees or sign contracts that last several years.

How should investors respond? By training their attention on the service companies that can grow and generate recurring income, not on single hardware projects that pay out once. A company that runs a satellite network, manages ground stations or provides the software that links them together earns money year after year so long as customers keep using the service. A firm that only builds one antenna or one part of a spacecraft gets paid when it ships the product, then must win the next order. The far better bet is in owning and operating the system, not just supplying a piece of it.

The opportunity is considerable. The global space economy is worth about $600 billion today, according to Space Foundation, and McKinsey & Co. believes it could reach $1.8 trillion in 2035. This isn’t hype. These numbers reflect the extent to which people and businesses already use space-based services: satellite internet, GPS navigation, weather data, secure communications. As trade, finance, energy and defence rely more and more on digital systems, demand for reliable networks and data keeps rising. Space underpins those systems, and so spending grows with them.

For sovereign wealth funds and pension funds, this pattern will look familiar. Electricity grids, fibre networks and data centers were once treated as growth stories; today they are core holdings. Companies such as National Grid or Equinix provide a stable, long-term income, not excitement. Space is moving in the same direction. Satellite networks and the ground systems that support them have become critical enablers. They can produce recurring revenue over many years if managed well.

Naturally, risk profiles change as the sector does. Investors should be careful not to rely overly on one part of the value chain. They might spread capital across launch providers, satellite operators, optical payload developers, ground station manufacturers and data or analytics firms that turn satellite signals into usable products. That brings down risk. A launcher may be grounded, a license delayed; tensions may unsettle one market. But a properly diversified portfolio will make sure that the money keeps rolling in.

It isn’t just the investment world that should take note. This evolution has clear implications for boards and management teams. As more players enter the market, scale and reliability become the main advantage. In a sense, it’s become cool — and lucrative — to be boring. For NewSpace Capital, this is precisely where value lies: in backing growth-stage companies that deliver proven products and services at scale, rather than early-stage ventures dependent on technical breakthroughs. Investors should favor companies that build the same product again and again, and manage their costs. Unglamorous consistency matters more than vision and novelty.

Governments and regulators, too, have a part to play. As space becomes a critical enabling network, the rules need to be clear. Radio spectrum is limited, so its use must be managed. Space debris is a growing problem, so consistent standards on tracking, de-orbiting and collision avoidance will be needed. Secure communications rules should recognize that satellite networks now carry military, government and commercial traffic. When companies know the rules won’t change without warning, they can plan for the long term. Clear rules reduce uncertainty. Investors can judge risk more accurately.

The test for investors is straightforward. Can the company run a large operation without costs spiralling out of control? Does it build the same product consistently and deliver when promised? Does it hold contracts that last several years and bring in regular income? Is its technology built into a wider network, or does it depend on one satellite or one launch? These are the criteria that shape an effective space investment strategy: targeting profitable, established companies with strong unit economics, recurring revenues and clear paths to scale, while avoiding binary technical risk.

But the fact remains: space is no longer a small, experimental field. It has become a core part of the global economy. Satellites now support internet access, payments, shipping, weather forecasting and military communications every day, and customers pay for these services on ongoing contracts. The opportunity lies not in one-off technical wins, but in companies that can deliver reliable service at scale, control costs and generate repeat income. That is the right investment approach to the sector: disciplined, growth-focused investing in the companies that make this network work.

Felix von Schubert is an executive partner at NewSpace Capital, the world’s first private equity firm to invest exclusively in space companies at the growth stage.

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