Global investment in space technology is expected to increase further in 2026, following a record year driven by government spending on defence-linked systems and renewed private sector interest in launch services, according to a report by Reuters citing the investment firm Seraphim Space.

According to the report, investors anticipate that funding momentum will be sustained by rising expenditure on sovereign satellite programmes, missile defence systems and the integration of artificial intelligence (AI) into space hardware and data analytics. The prospect of a future initial public offering (IPO) by SpaceX is also seen as a potential catalyst for the sector.

Private investment in the space sector reached a record $12.4 billion in 2025, a 48 percent increase from the previous year, including $3.8 billion raised in the final quarter. The total surpassed the previous peak recorded in 2021 and marked a full recovery from the downturn experienced in 2022, outperforming the broader venture capital market, as per the report.

Space infrastructure is increasingly being treated as a strategic national priority, as governments compete to secure geopolitical and security advantages.

The United States accounted for the largest share of funding, attracting $7.3 billion, or around 60 percent of global investment. This was driven by substantial spending on launch services and defence-related initiatives, including the Pentagon’s Golden Dome programme. In December, President Donald Trump signed an executive order designating space as a core national security and economic priority, a move investors expect will further boost funding.

Growth in Europe was more modest, while investment levels in Asia remained elevated. China contributed roughly $2 billion as it accelerated domestic launch capabilities and satellite manufacturing.