SpaceX CEO Elon Musk characteristically fanned the flames, declaring that SpaceX will someday shuttle private citizens to the moon, Mars and beyond. The IPO quickly became the largest in history. With dreams of making money in a galaxy far, far away — or at least beyond earth’s atmosphere — investors also poured capital into a host of space-related ETFs.

Sceptics couldn’t be blamed for having doubts about tourism on Mars. But the space economy is no Jedi mind trick. It’s already generating real-world opportunities for astute investors.

“It would be a mistake to write this off as science fiction,” says Michael Beckwith, equity portfolio manager. “The declining cost of getting into orbit will expand some businesses and open doors to others that were unimaginable a couple years ago. Some will materialise quickly; others will take much longer.”

The question for investors: how do you distinguish between mere fantasy and tangible opportunities that can generate value before the next time Halley’s Comet next flashes by?

Here are six opportunities for investing in the space economy.

1. Space is not one, but many markets

Space is not a single market, but a constellation of existing and potential markets.

The gateway to these opportunities is a space travel ecosystem that starts with rocket manufacturing and launch but also includes ground infrastructure and satellite development. This layer of infrastructure serves as a doorway to other businesses, such as satellite communications, Earth observation, logistics, navigation and defence systems.

“Most of the revenue opportunities are in these downstream businesses, not in launch,” explains equity analyst Andrei Muresianu, who covers US telecom, cable and media companies.

Further cost reductions in launch make other businesses feasible, including the placement of AI data centres in space, which could happen in the next five to 10 years. Further down the road, companies are also exploring the potential for zero-gravity manufacturing, space travel and mining.

“Space may be like The New World when Europe explored it 500 years ago,” Muresianu adds. “First there was extraction and one-way trade, then colonisation, manufacturing and eventually a self-sustaining society.”

In total, space represents a $630 billion economy and is expected to grow to $1.8 trillion by 2035, according to the World Economic Forum.

2. Launch costs are plummeting

Once rare and costly, rocket launches are now routine. SpaceX, which launched its 100^th mission of 2026 in August, has dominated launch, accounting for 90% of the total payload taken into orbit, up from about 5% a decade ago.

State-sponsored efforts in China rank a distant second globally in terms of launch payloads. Other companies that have active launch programs include Rocket Lab, United Launch Alliance (ULA), Relativity Space and Blue Origin.

SpaceX has come to dominate the launch business by  making rockets partly reusable. This breakthrough and other advances drove down the cost to reach low Earth orbit from $54,000 per kilogram in the days of the Space Shuttle to $2,700 per kilogram today. This kickstarted commercial opportunities previously economically unfeasible and spawned dozens of new companies.

SpaceX is now testing its next generation rocket, Starship, a fully reusable orbital launch system capable of carrying as much as 100 to 150 metric tons to low Earth orbit, versus about 23 tons for today’s Falcon 9 rocket.

“Starship could be the railroad to the next space economy,” Muresianu says.

3. AI in space is no longer science fiction

The pieces are already in place for orbital data centres to move from the realm of science fiction to reality.

Early demonstrations have already shown that graphic processing units and other hardware can operate in orbit. And companies are beginning to test space-based inferencing and edge computing. To be sure, data centres in space still face challenges, including latency to Earth and the possible effects of radiation. But the key to making them commercially viable is driving down the launch cost.

“Today’s economics make it difficult to launch large networks into space, but if Starship achieves its cost targets and payload capacity, orbital data centres could become a new layer of AI infrastructure,” Beckwith adds. “And space-based systems offer potential advantages compared with earthbound data centres.”

Data centres on Earth are becoming increasingly expensive as hyperscalers run into bottlenecks in the form of scarce land, power and cooling resources. They also face growing opposition from elected officials and local populations.

“In space, data centres could have access to abundant solar power, avoid competition for water and land and face no community resistance,” says equity investment analyst Zach Alexander, who covers the US aerospace and defence industries.

4. Satellite service is coming to your smartphone

Satellite connectivity has already emerged as one of the most promising growth markets in telecommunications. With more than 6,000 satellites in low Earth orbit, SpaceX’s Starlink dominates the sector. Other providers include Amazon Leo (formerly Project Kuiper), AST SpaceMobile and OneWeb. These networks are well suited to providing broadband service to rural regions, aircraft, ships and developing markets where infrastructure is expensive or impractical, but they are less competitive in more populous markets with extensive infrastructure.

Today satellite networks represent only a fraction of the multibillion-dollar global broadband market. However, declining launch costs and advances in satellite development could help these companies expand their market share.

“Satellite broadband is already scaling rapidly and could become a roughly $40 billion market by 2030,” Muresianu says. “But the game changer for satellite communications companies is direct-to-device (D2D) services that allow ordinary smartphones to connect directly to satellites.”

D2D connectivity is still early in its development, with commercial deployments only beginning. As next-generation satellite constellations improve capacity, speed and coverage, satellite operators could capture a growing share of both the broadband and wireless markets.

5. National security priorities will boost the space economy

Not since the Cold War has geopolitical competition been so focused on the stars.

The US, China and other governments increasingly view space-based defense systems as critical to national security. “It could very well be the key battlefield between superpowers,” Alexander says.

In the US, NASA has long-term plans to build a new space station and a permanent base on the Moon. And in August, SpaceX launched NASA’s $4 billion Nancy Grace Roman Space Telescope into orbit for cosmic exploration.  Separately, the US Space Force is seeking to double its budget to $70 billion in its fiscal 2027. Much will be invested in satellite communications, intelligence gathering, surveillance and navigation systems.

President Trump has also identified the Golden Dome missile defense system as a key priority for the remainder of his term. Golden Dome plans include upgrading missile tracking and response capabilities to respond to advanced hypersonic missiles and other threats.

“The system is expected to rely heavily on space-based sensors, communications networks and potentially orbital interceptors,” Alexander says. “This effort will involve a number of companies, including most major defence contractors.”

For example, in July the Space Development Agency awarded L3Harris a $955 million contract to build 18 missile-tracking satellites equipped with infrared sensors to detect and track hypersonic and ballistic missiles. Lockheed Martin, Northrop Grumman and RTX are among the companies developing space-based missile interceptors.

6. Space manufacturing and travel are not out of the question

Zero-gravity manufacturing of cancer treatments and flights from San Francisco to Tokyo in under 45 minutes may sound outlandish, but as launch costs fall even further and orbit becomes more routine, they become more feasible. And space offers unique physical conditions that cannot be replicated on Earth.

“Space has no dust or rain, heat radiates away, energy is free and unlimited and waste disposal is a minimal expense,” Muresianu explains. “Microgravity changes how crystals form and fluid moves, transforming the way chips, fibre and pharmaceuticals are made, to name a few examples.”

But don’t expect these developments to take place in the next five or 10 years, Muresianu concludes. “I think it’s more realistic to think of these as opportunities in 10 to 30 years.”

By Zach Alexander, equity investment analyst, Michael Beckwith, equity portfolio manager & Andrei Muresianu is an equity investment analyst.

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