The author here considers some of the large opportunities - and a few risks - associated with the emerging world of space technology and business.

Spacefaring and the technological marvels of the “high frontier” are as popular now as they were in the heady days of the Apollo programme in the late 1960s. (See an article here.) The feats of tycoon-turned-Trump-advisor Elon Musk have already burned themselves into public consciousness, but there are many others besides. What are the ways one can invest in all this, and what are the financial prospects? To try and grapple with all this is Rahul Bhushan (pictured below), managing director at Ark Invest Europe. The editors are pleased to share these insights, and we intend to return to this topic. To comment, email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com. The standard editorial disclaimers apply to views of guest writers. 
 

Rahul Bhushan

The re-election of Donald Trump signals a renewed focus on and acceleration of US dominance in the space economy. A hallmark of Trump’s first administration was the establishment of the US Space Force in 2019, marking a significant milestone in integrating space into national security and economic strategies.

The early indicators from his second term suggest a continuation – and amplification – of these priorities, with an emphasis on public-private partnerships, increased funding and a drive to outpace global competitors, particularly China.

One immediate sign of this renewed vigour is the Pentagon’s recent decision to escalate its budget for proliferated low-Earth orbit (pLEO) satellite services. The increase, from $900 million to $13 billion through to 2028, underscores the strategic imperative of resilient satellite communications for both military and civilian purposes.

These developments present a significant opportunity for investors to assess companies innovating in satellite technology, launch systems and space-based analytics.

Space economy boon?
Under Trump’s presidency, the US government has historically funnelled significant resources into space initiatives. The establishment of the Space Force not only strengthened military capabilities but also created a ripple effect in the private sector, spurring innovation and investment in space technologies. 

The trend is likely to accelerate, with analysts projecting heightened activity in satellite deployments, lunar exploration and Mars missions, alongside a continued focus on national security applications.

Musk’s companies, particularly SpaceX, have already reshaped the economics of space with cost-effective launch systems like Falcon 9 and the development of Starship, designed for interplanetary travel.

With a Trump administration in power, Musk’s vision aligns closely with federal priorities, setting the stage for expanded collaborations between SpaceX and US agencies.

Key space economy stocks
There are a number of companies poised to benefit from these trends – their technologies and business models align with the expected catalysts in the space economy.

1. Iridium Communications
Iridium operates a robust network of 66 low-Earth orbit satellites, enabling secure, global communications for both military and civilian applications. In 2024, the company secured a $94 million, five-year contract with the US Space Force’s Space Systems Command to enhance mobile satellite services and sustain security infrastructure. 

This follows the successful launch of Project Stardust, a groundbreaking initiative to integrate 5G standards-based Narrowband-Internet of Things (NB-IoT) Non-Terrestrial Network services into its existing satellite network. As geopolitical tensions and defence strategies evolve, Iridium’s role in providing uninterrupted, secure connectivity continues to expand, positioning it as a key enabler in the growing space economy.

2. Rocket Lab USA
Rocket Lab USA has established itself as a leader in small satellite launches, a critical capability for both commercial and defence applications. Its Electron rocket, designed for rapid and dedicated satellite deployment, continues to meet the US government’s need for responsive and scalable launch solutions. 

In 2024, the company advanced its Neutron rocket development, securing a multi-launch contract for this medium-lift vehicle, expected to play a key role in future space missions. On 14 November 2024, the company also launched its first Neutron launch customer. With its proven track record and innovative approach to space access, Rocket Lab remains at the forefront of enabling the next generation of satellite constellations and national security infrastructure.

3. Palantir Technologies
Palantir Technologies, renowned for its data analytics expertise, is expanding its footprint in the space sector. The company’s platforms enhance decision-making for satellite operations, Earth observation, and space-based defence strategies. In 2024, Palantir secured a $480 million contract from the US Department of Defence to develop the Maven Smart System, an AI-driven platform designed to process vast amounts of data from various sources to identify military points of interest. 

Additionally, Palantir partnered with Anthropic and Amazon Web Services to integrate AI models into defence and intelligence operations, further solidifying its role in national security. As the government prioritises actionable intelligence, Palantir’s ability to synthesise complex data into strategic insights becomes increasingly vital, positioning it as a key player in the evolving space economy.

4. SpaceX (Private)
While not held in ARKI, SpaceX stands as a pioneer in satellite deployment and reusable rocket technology. The Pentagon’s emphasis on proliferated low-Earth orbit (pLEO) satellite constellations, essential for secure communications and anti-jamming capabilities, positions SpaceX’s Starlink as a prime beneficiary. With over 4,000 operational satellites, Starlink is revolutionising global connectivity and establishing itself as a cornerstone in national defence infrastructure. In October 2024, SpaceX achieved a significant milestone by successfully catching a returning Super Heavy booster using mechanical arms on the launch tower, marking a first in aerospace engineering. This advancement underscores SpaceX’s leadership in developing fully reusable launch systems, further solidifying its role in the evolving space economy.

Implications for investors?
The Trump administration’s prioritisation of space signals an economic opportunity. By fostering public-private partnerships, expanding defence budgets and emphasising innovation, the US is catalysing a new era of growth for space economy companies.

For investors, there are a number of compelling opportunities to tap into the transformative potential of the space economy. This includes satellite operators, launch providers, and a broader spectrum of innovation-driven sectors poised to thrive under Trump 2.0, including artificial intelligence, robotics, autonomy, and the genomic revolution as healthcare increasingly integrates with AI.