Space Economy Takes Off: Undervalued Stocks Rocketing Higher

The space economy is rapidly growing, with estimates reaching $1.8 trillion by 2035. National security and communications are key verticals driving this growth, with the national defense sector alone estimated to reach $30-40 billion by the end of the decade. Stocks like BlackSky, Planet Labs, Rocket Lab, and Palantir are poised to benefit from this trend.

The space economy is rapidly growing, poised to reach $1.8 trillion by 2035, according to industry estimates [1]. This expansion is fueled by key verticals such as national security and communications, with the national defense sector alone estimated to reach $30-40 billion by the end of the decade [1]. Companies like BlackSky, Planet Labs, Rocket Lab, and Palantir are positioned to benefit from this trend, as they provide critical services and technologies in these sectors.

The space economy is not just about launching satellites into orbit; it encompasses a wide range of activities, from satellite manufacturing and launch services to data analytics and ground station operations. These activities create a diverse and dynamic ecosystem that supports both economic growth and national security.

Key Drivers of Growth

# National Security

National security is a primary driver of the space economy. Satellites are integral to maritime domain awareness, border surveillance, and secure communications for military and police forces in remote areas. The ability to maintain sovereign control over critical information and data is a significant motivation for developing domestic space capabilities. As noted by a South African official, foreign countries may have more awareness of a nation's activities due to satellite capabilities, highlighting the strategic importance of space-based information [1].

# Communications

Satellite communications are another key vertical driving growth. They extend internet and telephony access to remote and underserved regions, enabling economic participation and improving governance. For instance, India's BharatNet program uses satellites to connect remote government offices, demonstrating the practical applications of space technology in enhancing connectivity and service delivery [1].

Investment Opportunities

For investors and financial professionals, the space economy presents a wealth of opportunities. Companies involved in satellite manufacturing, launch services, and data analytics are well-positioned to benefit from the growth in demand for space technologies. Additionally, the space value chain offers diverse entry points, from software development to ground station services, providing ample opportunities for investment.

Challenges and Considerations

While the space economy offers significant potential, it also presents challenges. The development of a national space capability requires substantial investment and strategic planning. Governments must navigate a complex landscape of technological options, funding sources, and international collaborations to build a sustainable space program. The challenge is not a lack of technological options but a perceptual barrier that frames space as a cost rather than an investment [1].

Conclusion

The space economy is rapidly evolving, driven by the need for national security and improved communications. As the industry grows, it presents significant opportunities for investors and financial professionals. However, successful engagement in this sector requires a strategic approach that balances technological innovation with economic and national security considerations. By understanding the key drivers and challenges, investors can make informed decisions and capitalize on the burgeoning opportunities in the space economy.

References

[1] https://newspaceeconomy.ca/2025/07/09/a-strategic-framework-for-emerging-states-in-the-global-space-economy-2/