Investment firm Seraphim Space stated on Monday that global investment in space technology is expected to climb further in 2026, driven by U.S. government spending on defense-related satellite systems and private sector bets on launch capabilities. Space infrastructure is increasingly being viewed as a strategic national priority, with nations competing for investment to secure geopolitical advantages. Seraphim Space indicated that investors anticipate the financing momentum will be fueled by sovereign spending on satellite and missile defense systems, the integration of artificial intelligence with space hardware and analytics, and the IPO prospects of SpaceX. "SpaceX's potential IPO could act as a powerful catalyst, further validating space tech as a mainstream asset class and opening a clearer path to public markets for a growing number of late-stage space tech companies," said Lucas Bishop, an investment analyst at Seraphim Space. According to data from Seraphim Space, investment in the sector hit a record high in 2025, with private investment growing 48% to $12.4 billion, which included $3.8 billion in the fourth quarter. This level of financing surpassed the previous peak set in 2021, signaling a full recovery for the industry from the 2022 downturn and outperforming the broader venture capital market. The United States dominated the market last year with $7.3 billion in investment, accounting for approximately 60% of global funding, buoyed by massive spending on launch services and defense-related projects such as the Pentagon's "Project Golden Dome." In December, U.S. President Trump signed an executive order designating space as a core national security and economic priority, a move investors expect will boost funding for the sector. Growth in the industry was more moderate in Europe, while investment in Asia remained high, with China contributing around $2 billion as it accelerates its domestic launch and satellite manufacturing capabilities.
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