Space sector eyes further investment growth in 2026 after record year

Core Insights - Global investment in space technology is expected to increase further in 2026, driven by government spending on defense-linked satellite systems and private sector investments in launch capacity [1][2] - The integration of AI into space hardware and analytics, along with the potential SpaceX IPO, are anticipated to fuel funding momentum in the sector [2] Investment Trends - Investments in the space sector reached record levels in 2025, with private investment growing by 48% to $12.4 billion, including $3.8 billion in Q4 [3] - The funding in 2025 surpassed the previous peak set in 2021 and marked a full recovery from the downturn experienced in 2022, outperforming the broader venture capital market [3] Regional Insights - The U.S. led global investment in 2025 with $7.3 billion, accounting for approximately 60% of total funding, largely due to spending on launch services and defense-related programs [4] - In Europe, growth was more modest, while investments in Asia remained high, with China contributing around $2 billion as it accelerated domestic launch and satellite manufacturing [5]