The Rising Power of Space and Defense Technology in 2024: Unlocking High-Growth Opportunities

The global defense and space sectors are undergoing a seismic shift, driven by a strategic convergence of military modernization and space infrastructure expansion. As nations pour record sums into defense budgets—SIPRI reports a 9.4% surge in global military spending in 2024 to $2.7 trillion—space is no longer a frontier of exploration but a contested domain. Companies like MDA Space, BlackSky, and Anduril Industries are at the forefront of this transformation, leveraging satellite systems, autonomous weapons, and AI to capitalize on a $6.38 trillion defense market projected to grow through 2035. For investors, this represents a rare window to back firms poised to benefit from both geopolitical urgency and technological innovation.

The Strategic Convergence: Space as a Military Asset

The militarization of space is accelerating. In 2024, defense-related space spending hit $73 billion, or 54% of global government space budgets, as nations race to secure orbital dominance. The U.S. alone allocated $849.8 billion to its Department of Defense in 2025, with a focus on hypersonic weapons, AI-driven logistics, and space-based early warning systems. China's 7% annual military spending increase and Russia's 38% surge in 2024 further underscore the stakes.

This shift is not just about satellites—it's about creating a networked, multi-domain battlefield where space assets enable real-time intelligence, navigation, and communication. For example, the U.S. Space Force's $99.7 million contract with Anduril Industries to integrate its Lattice software into the Space Surveillance Network (SSN) exemplifies how AI and autonomous systems are redefining space operations.

MDA Space: Robotic Mastery for Lunar and Defense Missions

MDA Space, a Canadian leader in space robotics, is capitalizing on its legacy of building NASA's Canadarm2 and Dextre systems. In 2025, the company is deepening its role in NASA's Artemis program, developing robotic tools for lunar sample collection and habitat deployment. Its expertise in in-space servicing and satellite manufacturing also positions it to benefit from the U.S. and Canadian governments' push for secure, resilient space infrastructure.

For defense clients, MDA's geospatial intelligence solutions are critical for secure satellite communications and space situational awareness. With the U.S. and NATO prioritizing lunar and deep-space capabilities, MDA's contracts with agencies like the DoD and CSA (Canadian Space Agency) are set to grow. Investors should note MDA's strong regulatory compliance and its alignment with national security priorities, which reduce exposure to commercial market volatility.

BlackSky: Real-Time Geospatial Intelligence for a Turbulent World

BlackSky's satellite constellation is a linchpin for real-time geospatial intelligence (GEOINT). In 2025, the company launched its Gen-3 satellites, offering 35-centimeter resolution and shortwave infrared imaging for all-weather monitoring. This technology is in high demand for defense applications, from tracking military movements to monitoring critical infrastructure.

BlackSky's Q2 2025 revenue of $22.2 million, with a 3% increase in imagery and analytics services, highlights its resilience amid U.S. government budget uncertainties. A $24 million contract with the National Geospatial-Intelligence Agency (NGA) and a $241 million deal with the Joint Artificial Intelligence Center (JAIC) underscore its strategic value. The company's acquisition of LeoStella in 2024 also enables rapid satellite production, reducing costs and accelerating deployment.

Anduril: AI-Powered Autonomy for Multi-Domain Warfare

Anduril Industries is redefining modern warfare with its Lattice platform, an AI-driven system that integrates sensors, data, and autonomous decision-making across land, air, and space. The company's $1.5 billion funding round in 2024 and a $100 million DoD contract for its Edge Data Mesh highlight its role in the U.S. military's digital transformation.

Anduril's expansion into space includes plans to launch its own AI-powered satellites by 2025, targeting on-orbit sensor data processing and space domain awareness. Its recent acquisition of Numerica's radar and C2 systems further strengthens its edge computing capabilities. With the U.S. Space Force and allies prioritizing autonomous systems, Anduril's dual-use approach—serving both commercial and defense clients—positions it as a key player in the AI-driven defense sector.

Investment Case: Timing the Convergence

The convergence of space and defense is not a passing trend but a structural shift. With global defense spending growing at 8.13% CAGR through 2035 and space budgets rising 10% annually, companies like MDA, BlackSky, and Anduril are uniquely positioned to capture this growth.

• MDA Space offers a stable, government-backed revenue stream with high-margin contracts tied to national security.
• BlackSky is scaling its satellite constellation and AI analytics, with a clear path to breakeven EBITDA in 2025.
• Anduril is a venture-backed disruptor with a first-mover advantage in AI-driven autonomous systems, backed by DoD contracts and a $1.5 billion valuation.

For investors, the key is to act now. These companies are not just beneficiaries of current trends—they are architects of the next era of defense and space technology. As the U.S., China, and NATO nations double down on their space arsenals, the firms that master the integration of AI, autonomy, and orbital infrastructure will dominate the 21st-century battlefield—and the stock market.

Final Note: The defense and space sectors are entering a golden age of innovation. For those willing to invest in the companies building the tools of tomorrow's wars, the rewards could be as vast as the final frontier itself.