NewSpace Navigator – Fifth Edition
The global space sector remains on a strong growth trajectory, with recent Novaspace and Space Capital reports predicting the market could exceed US$1tn by 2034. Activity is being driven by sector maturation, increased financing, and the continuing development of space infrastructure.
The growing importance of spectrum and having assets in orbit is highlighted by Amazon’s US$11.6bn acquisition of Globalstar, driven by Globalstar’s established satellite constellation, valuable spectrum rights, and its long-term offtake contract with Apple. Mergers and acquisitions (M&A) and capital markets activity remain robust. SpaceX’s acquisition of xAI in a US$1.25tn deal, completed in February 2026, positions Musk to pursue ambitious plans for space-based data centers.
Launch activity continues to be strong, with SpaceX completing multiple large missions, while Arianespace, Rocket Lab, the Indian Space Research Organisation (ISRO), AST SpaceMobile, United Alliance, and other NewSpace companies execute satellite launches. Key corporate activity in February 2026 includes SpaceX acquiring xAI to form the ‘most ambitious, vertically integrated innovation engine on (and off) Earth.’ York Space raised US$629m to increase satellite production capacity; Space Asset Acquisition Corp closed a US$230m IPO targeting global space economy opportunities; Anywaves and EmTroniX merged to form a unified industrial group for space markets. Leonardo signed an agreement to acquire weather instrument manufacturer Enterprise Electronics Corporation (EEC), expanding its U.S. operations. Parsons Corporation acquired Altamira Technologies Corporation for up to US$375m to accelerate its national security growth strategy. AE Industrial Partners acquired a controlling stake in L3Harris’s space propulsion business for US$845m, continuing operations under Rocketdyne.
December 2025 saw Sidus Space raise US$16.2m, CACI International acquire ARKA Group for US$2.6bn, HawkEye 360 acquire Innovative Signal Analysis and raise US$150m, and Cobham Satcom acquire Gatehouse Satcom to merge with its Network Division. Finance highlights include Seraphim Space closing its second early-stage venture fund above US$100m, the European Investment Bank providing €25m to OQ Technology for a 20+ satellite LEO constellation, and multiple startups securing funding: Sophia Space (US$10m), Aalyria (US$100m), SatVu (£30m), Axiom Space (US$350m), Eutelsat (€975m), Stoke Space (US$860m), constellr (€37m), io (US$175m), Morpheus Space (US$15m), and CesiumAstro (US$270m + US$200m). January 2026 funding rounds include Northwood Space (US$150m), D Orbit (€110m), Swissto12 (€73m from ESA), Gilmour Space (US$146m), Interstellar Technologies (US$130m), Hydrosat (US$60m), ThinkOrbital (seed funding), SkyFi (US$13m), and Array Labs (US$20m). December 2025 funding rounds include 4iG Space and Defence (US$100m in Axiom Space), EraDrive (US$5.3m), K2 Space (US$250m), Rocket Lab (Canadian Space Agency funding), Odin Space (US$3m), ICEYE (€150m + €50m), and Marble Imaging (€5.3m).
Launch activity in 2025–2026 includes SpaceX completing 32 Starlink missions, GPS III-9, NROL-105, Twighlight, Cosmo-Skymed 2nd gen, and NROL-77; Arianespace launching 32 Amazon LEO satellites and two Galileo First Generation satellites for ESA, plus KOMPSAT-7 for the Republic of Korea. Rocket Lab launched Japanese technology demonstration satellites, Open Cosmos satellites, and a SAR satellite for iQPS. ISRO launched a Polar satellite Launch Vehicle. AST SpaceMobile launched BlueBird 6, the world’s largest commercial communications array in LEO. United Alliance launched 27 Amazon LEO satellites.
Source: Watson Farley & Williams