Space is no longer the final frontier, it’s the next investable one, following a period of slower growth and rising financing costs that turned investors off.
The global space economy hit $613 billion in 2024 and is poised to top $1 trillion by 2032, propelled by surging defence budgets and accelerating commercialisation.
As satellite networks become vital infrastructure, powering navigation, logistics, financial transactions and surveillance, the line between space and everyday life is blurring fast, with the backdrop shifting in investors’ favour, according to Panmure Liberum.
Rocket launches are cheaper, data demand is growing, and defence funding is underwriting a new wave of infrastructure.
Much of the transformation is down to SpaceX’s dominance, with its reusable rockets slashing the cost of space launches, funded by government contracts and increasingly by its cash-generating Starlink network, which is now eyeing direct-to-phone 5G services.
Investors are pouring in, with listed space equities up 135% since mid-2024, the broker calculted, with capital inflows rebounding.
Apart from US and European giants like Lockheed Martin Corp (NYSE:LMT), Boeing Co (NYSE:BA), Northrop Grumman Corp (NYSE:NOC), Airbus Group (EPA:AIR), Thales and Leonardo, there are some newer listed challengers like Rocket Lab USA Inc (NASDAQ:RKLB), AST SpaceMobile Inc (NASDAQ:ASTS) anmd Intuitive Machines Inc (NASDAQ:LUNR).
Many others are private, including SpaceX.
But five UK-listed investment trusts offer exposure.
Seraphim Space Investment Trust PLC (LSE:SSIT) is the world’s first dedicated spacetech fund, which trades at a steep discount to NAV, despite what Panmure sees as a strong portfolio led by ICEYE.
Then there are a group of funds that have sizeable stakes in SpaceX. Scottish Mortgage Investment Trust PLC (LSE:SMT), the FTSE 100-listed tech investor, has a stake representing 7.6% of its portfolio. Stakes are also held by Schiehallion Fund (LSE:MNTN), Baillie Gifford US Growth Trust and Edinburgh Worldwide Investment Trust, representing 9.4%, 11.25% and 13.3% of their portfolios respectively.