Venture capital poured over $8.6 billion into space startups in 2024, a signal that space is moving from science fiction into practical infrastructure. But this isn’t just about rockets and astronauts. It’s about satellites that run on artificial intelligence, quantum-encrypted communications, and defense systems that detect threats in real-time.
Space tech is quietly becoming the foundation for how we’ll defend countries, manage global data, and expand AI capabilities. If you’re investing in the future, understanding what’s being built above Earth—and how you can get exposure on the ground—is critical.
#What Is Space Tech Investing?
Space Tech Investing in the space sector goes beyond traditional satellites and rockets. It refers to cutting-edge technologies grounded in scientific advances—things like autonomous systems, machine learning, and quantum communications.
These aren’t concepts. They’re being deployed to create AI-driven satellites, autonomous monitoring systems, and secure communication networks for defense and commercial use. It’s the difference between a passive satellite beaming a signal and an orbiting platform that can detect a cyberattack or monitor global crop yields in real-time.
#Key Applications in Space Tech Investing
Space is now a key battleground for defense, a network hub for global data, and a resource for commercial intelligence.
Defense
Governments are investing heavily in AI-powered defense satellites that support missile tracking, space-based radar, and secure communications. In 2024, the U.S. Space Force received over $30 billion in funding, with a major chunk going toward next-gen surveillance and communication infrastructure.
Satellites from defense firms now use machine learning to interpret threats autonomously, respond to interference, and even simulate war game scenarios. In 2025, NATO and Indo-Pacific alliances are accelerating satellite collaboration, signaling that space tech is now a core asset in global defense strategy.
Data Infrastructure
Low Earth Orbit (LEO) satellite networks like SpaceX’s Starlink or Amazon’s Project Kuiper are creating real-time global broadband. These LEO constellations reduce latency for cloud services and enable more secure, decentralized internet systems.
Space-based infrastructure is also playing a role in quantum communications, where encryption is handled through quantum keys to protect sensitive data from cyberattacks.
This is a space-data stack that powers everything from 5G backhaul to disaster response systems.
Space Tech Commercial Use Cases
Beyond defense and data, satellites are powering AI-driven Earth observation. Farmers can monitor soil moisture, insurance firms can assess flood risks, and shipping companies can track supply chains across oceans.
AI analytics platforms like those developed by Descartes Labs and Planet Labs analyze petabytes of satellite imagery to predict crop yields, carbon emissions, or geopolitical shifts.
These services are sold to governments, corporations, and hedge funds—creating new revenue streams tied to satellite data.
#Who’s Building Space Tech?
Several public companies are at the forefront of space tech development:
Lockheed Martin Corp. (NYSE: LMT), RTX Corp. (NYSE: RTX), and Northrop Grumman Corp (NYSE: NOC) lead in satellite defense, secure comms, and AI-enhanced systems. Meanwhile, Palantir Technologies (NYSE: PLTR) has deep ties to government space and defense intelligence with its role in AI-based defense data analytics.
Suppliers like Planet Labs (NYSE: PL) offer Earth imagery and AI data services and Kratos Defense (NASDAQ: KTOS) focus on satellite infrastructure and components.
Retail investors can also gain exposure through ETFs:
ARKX (ARK Space Exploration ETF): Includes names tied to space infrastructure and robotics.
UFO (Procure Space ETF): Offers more direct exposure to satellite operators and data providers.
iShares U.S. Aerospace & Defense
Private players like SpaceX are not publicly traded, but they partner with or contract with listed companies, giving investors indirect exposure through the supply chain.
#Why Space Tech Matters to Investors
There are three reasons why space tech should be on the radar of every individual investor.
Defense budgets are resilient. Even in economic downturns, governments prioritize national security. Companies tied to space-based defense often benefit from long-term, high-margin contracts.
AI needs infrastructure. Space-based systems are enabling real-time data transfer, environmental intelligence, and machine learning applications at a global scale.
Diversification. Space offers exposure to a unique mix of sectors—defense, communications, cloud infrastructure, and AI. Diversifying your portfolio can help spread risk across different macro drivers.
#Space Tech Investing: Risks and Considerations
Retail access to pure space plays is still limited. Many of the most innovative companies are private or buried inside large conglomerates.
Other key risks include:
High R&D costs and long development cycles
Government reliance—many revenues are tied to political cycles and defense budgets
Speculation risk—retail interest can spike during hype cycles, then crash when timelines stretch
This is not a sector for short-term gains. It requires patience and belief in long-term structural shifts.
#How to Get Exposure to Space Tech
You don’t need to bet on a moonshot startup to invest in space tech. There are more accessible paths:
ETFs: Start with ARKX or UFO for curated baskets of space-related equities.
Defense giants: Lockheed Martin, RTX Corp (formerly Raytheon), and Northrop Grumman have deep government ties and long project pipelines.
Thematic funds: Consider ETFs focused on AI infrastructure, cloud computing, or next-gen defense, which often include exposure to satellite and space tech suppliers.
Top Tip for Investors: Always check fund holdings and fees before investing. Forget the headlines, real revenue comes from long-term contracts, so dig into 10-Ks and earnings calls for clues on government deals and pipeline strength.
#What’s Next?
Space tech isn’t a niche theme anymore. It’s becoming the backbone of defense systems, global data networks, and commercial AI platforms. If you're building a portfolio for the future, this is a sector worth understanding.
Looking to go deeper?
Investing Data Story: Space Tech Investments Soar