Key considerations when investing in space: A short guide

The space industry has matured into a $4 trillion powerhouse comprising over 10,000 companies. Investors are gearing up about the imminent possibility that SpaceX might become publicly traded (an IPO). If that happens, it could boost the whole space-related stock market.

That excitement is based on what we saw happen in 2025, when several space companies had huge gains:

• AST SpaceMobile went up a lot (+246%)
• Rocket Lab also surged (+175%)
Sponsored
• BlackSky rose too (+73%)

Now, regular investors (not just professionals) have more ways to invest in the space industry through ETFs (funds that bundle multiple companies together), such as:

• Seraphim Space
• VanEck Space Innovators ETF
• ARK Space & defense ETF

These funds invest in different parts of the space industry—like satellites, rocket launches, and communications—so people can invest more easily without picking individual companies. The space industry is becoming a hot investment area, and if SpaceX goes public, it could drive even more growth and interest.

Here, Angeline Ong, Senior Investment Analyst at IG shares exactly what investors need to consider when looking forward to Space X IPO prospects:

Stick with the picks and shovels

Don’t try to pick the winner – back the companies supplying all of them. In the gold rush, those selling picks and shovels made more reliable money than the miners. In space, that means businesses providing mission-critical components, satellite data and infrastructure – companies that benefit whether SpaceX or Rocket Lab wins the launch race, or whether Starlink or AST wins the connectivity battle.

Examples include L3Harris Technologies, Kratos Defense, RTX (Raytheon), and Howmet Aerospace – all of which supply critical infrastructure across the entire space value chain.

Look towards double-bubble investments

Focus on companies operating across both space and defense, where government-backed contracts provide stability alongside growth. Names like L3Harris, RTX and Kratos sit at this intersection – spanning satellite systems, communications, surveillance and missile technology – while players like BlackSky add a data layer through geospatial intelligence used commercially and by defense.

Back companies with moats

Zone in on space companies with defensible moats, typically defined by three traits: high technical barriers to entry, long replacement cycles, and customers who prioritise reliability over price. These dynamics tend to drive recurring demand and pricing power, particularly as space operators, governments, airlines and cloud providers must continue investing regardless of the broader economic cycle.

The post Key considerations when investing in space: A short guide appeared first on USNewsRank.