Global Space Economy Reaches $626 Billion, Marking a New Phase of Growth

Paris, France [January 29, 2026] – 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, market intelligence, and executive summits, formed through the merger of Euroconsult and SpaceTec Partners. With more than 40 years of heritage, Novaspace supports governments, space agencies, industry leaders, and investors in strategic decision-making across the entire space value chain. Its integrated offering spans management consulting, technology consulting, market intelligence, and high-level executive events. Trusted by more than 1,200 clients across 60+ countries, Novaspace operates from offices in Brussels, London, Montreal, Munich, Paris, Singapore, Sydney, Tokyo, Toulouse, Washington D.C., and now Bangalore, India.

Media Enquiries:
Olivia Garnier | Communications Lead | olivia.garnier@nova.space