Investors pour $3.5 billions into space tech as sector expands and matures

Publicly listed space companies have also seen their shares soar: Rocket Lab and Planet Labs have doubled in value, while AST SpaceMobile has tripled after showcasing its satellite-to-phone broadband technology.

Global investment in space technology nearly doubled to $3.5 billion last quarter, as funding became more diverse and defense-linked companies attracted growing interest.

According to a report by Seraphim Space, an investment firm specializing in the space sector, total space investment reached a record $3.5 billion in Q3, fueled by a broader range of startups and sustained defense spending. For comparison, the figure stood at $1.79 billion during the same period last year – a sign that space is solidifying its position as one of the leading technology growth sectors alongside artificial intelligence.

Analysts note that this record quarter reflects a maturing market, with capital now spread across a larger number of companies rather than concentrated in a few major players.

“Historically, most of the capital in the sector was concentrated among just a few – SpaceX and OneWeb,” said Lucas Bishop, an investment associate at Seraphim Space. “Now we’re seeing a far more diverse landscape of investable companies, showing that the space industry has evolved into a broader, more mature ecosystem.”

In the United States, hardware-focused defense tech firms such as Hadrian, Apex, and Hermeus led the top deals, while China’s Galactic Energy raised a record $336 million last month.

The report highlights that growth is increasingly driven by government initiatives aimed at strengthening domestic space and defense industries in the U.S., China, and Europe. Analysts expect the momentum to continue through 2026, as commercial satellite networks expand and governments ramp up procurement – creating new opportunities for dual-use technologies that serve both civilian and defense applications, such as OneWeb and SpaceX’s Starshield program.