Investing.com — The global space economy’s total addressable market could reach $1.3 trillion by 2040, supported by falling launch costs, growing satellite services and increased defence spending, UBS said in an analyst report. <\/p>\n
The estimate represents annualised growth of about 7%. A scenario in which technological development proceeds on schedule would place the market closer to $2 trillion, but the forecast was reduced by one-third to account for delays and technical hurdles. <\/p>\n
Satellite Industry Association data valued the narrower global space economy at $429 billion in 2025, up 3% from the previous year. Commercial satellites generated $303 billion and represented 71% of the total. <\/p>\n
Ground equipment was the largest segment at $165.2 billion, followed by satellite services at $105 billion. Consumer applications, including satellite television, radio, and broadband, accounted for $80.2 billion of service revenue. <\/p>\n
Lower launch costs are expected to support the next stage of expansion. The cost of placing payloads into low Earth orbit could fall below $250 per kilogram by 2040, compared with roughly $1,500 to $2,000 currently. <\/p>\n
Cheaper launches should make satellite communications, Earth observation, space logistics and emerging applications more commercially viable. Most incremental value is expected to come from recurring space-enabled services rather than launch activity itself. <\/p>\n
National security spending is another major growth driver. The proposed US Space Force budget rises 30% to $49.6 billion for fiscal 2027, with funding directed towards missile warning, satellite protection, secure communications, and navigation. <\/p>\n
Germany has committed \u20ac35 billion to space assets by 2030, and NATO members plan to increase broader defence and security expenditure through 2035. <\/p>\n
Longer-term opportunities include private orbital stations, space-based manufacturing, lunar infrastructure, and orbital data centres. Many remain technically unproven and require substantial external funding. <\/p>\n
Investment risks include launch failures, project delays, inconsistent cash flow, orbital congestion, and regulatory uncertainty. Venture investment still reached $11.6 billion across 430 space-technology deals during 2026 through early July, already matching the total recorded in 2025. <\/p>\n
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