The space economy has grown well beyond government agencies, and a rising number of publicly traded companies now operate across rocket manufacturing, satellite broadband, geospatial data and defense contracting. This guide walks through what space stocks are, the key sectors driving growth and the practical steps involved in building exposure to this industry.
Defining space stocks isn’t as easy as it might seem. First, let’s look at what the space economy is. The Organisation for Economic Co-operation and Development (OECD) defines this as "all activities and resources that contribute to human progress through the exploration, research, understanding, management and utilization of space." It's a broad definition that reflects how many industries now intersect with space.
The European Space Agency notes that space isn’t recognized as a category in international standards of industrial classification. As a result, worldwide national space statistics may differ.
For our purposes, space stocks are publicly traded equities with revenue or business strategy materially tied to the space economy. They span areas such as launch services, satellite operations and aerospace and defense contracting.
Two broad categories of space stocks exist:
According to a joint study by McKinsey and the World Economic Forum, the global space economy was valued at approximately $630 billion in 2023. PwC independently estimates the space economy generated approximately $570 billion in revenue that same year – a slight variance reflecting different methodologies.
The McKinsey and World Economic Forum study predicts the global space economy could reach $1.8 trillion by 2035, growing at roughly twice the pace of global gross domestic product (GDP).
These are projections, not guarantees, though. Past performance does not guarantee future results.
PwC segments the space industry into upstream, midstream and downstream activities. Here's how these correlate with the four main pillars investors typically encounter:
Companies that build rockets and deliver payloads into orbit. PwC identifies declining launch costs and advancements in reusable launch technology as the primary driver of the space economy's predicted growth.
Businesses managing communication, imaging and broadband networks in orbit. According to Brookings, growth in the space economy is concentrated largely in low Earth orbit and in activities tied to satellites, ground systems and space-based services. The FCC licenses satellite communications operations under 47 CFR Part 25, covering both geostationary and non-geostationary orbit satellite systems.
Companies analyzing geospatial data for logistics, weather, agriculture and other commercial applications. The McKinsey/WEF study splits the 2023 space economy into backbone applications – such as satellites and launch services, valued at approximately $330 billion – and reach applications, valued at approximately $300 billion.
Established contractors building advanced spacecraft and defense systems. These companies often derive revenue from both military and commercial programs. For example, Lockheed Martin's Space segment generated approximately $13.03 billion in sales in 2025, representing roughly 17.36% of total company revenue.
According to the WEF/McKinsey study, digital communications, defense, retail and consumer goods, food and beverage and supply chain and transportation are expected to generate more than 60% of projected space economy demand by 2035.
US retail investors may access space exposure through several mechanisms, including thematic space ETFs, broader aerospace and defense ETFs, individual stock purchases, mutual funds and, in limited cases, pre-IPO secondary markets.
Investing carries risks, including price volatility and the potential for loss. Always consider your risk appetite before investing.
Discover the pros and cons of investing in stocks
When exploring how to invest in space stocks, one of the early decisions is whether to buy individual companies or use an ETF that bundles several together. Each approach involves different trade-offs.
Individual space stocks can offer targeted exposure to specific business models but may carry higher concentration risk compared to diversified ETFs. If a single company experiences a launch failure or loses a major contract, the impact on a concentrated portfolio could be significant.
Space ETFs bundle multiple aerospace-related assets into a single investment, which may help diversify risk compared to holding individual stocks. However, not all space ETFs are built the same.
Space-themed ETFs can differ significantly in construction:
Concentration risk means that if a fund holds only a small number of companies – or focuses on a narrow slice of the market – a downturn in that area can have an outsized effect on the fund's value. With that in mind, UFO may carry higher concentration risk due to its narrow focus on space-revenue companies, while ARKX may carry broader innovation risk given its blend of space, defense and AI themes.
Even thematic ETFs can carry concentration risk. Investors should review fund holdings, expense ratios and construction methodology before making decisions.
Space industry valuations are influenced by a unique set of macroeconomic and sector-specific factors. Here are the primary drivers:
Many aerospace companies rely heavily on contracts from government agencies such as NASA or the Department of Defense. Changes in federal budgets or contract awards may significantly impact these companies' revenue projections.
Successful rocket launches, satellite deployments or testing breakthroughs may positively influence space company valuations. Conversely, launch failures, vehicle losses or development delays may introduce significant price volatility.
The space sector operates under multiple regulatory frameworks:
Changes in international space law, orbital debris regulations or satellite spectrum allocation may also affect operational costs and project timelines for space companies.
The space sector is extremely capital-intensive, and companies may be sensitive to interest rate changes that could increase borrowing costs for ongoing research and development. Rising rates can weigh on firms that haven’t yet reached profitability.
The space sector presents both potential growth drivers and significant risks.
Can I buy SpaceX stock?
Yes. Until recently, SpaceX was a private company, meaning retail investors could not purchase shares directly on public markets. On June 12, 2026, SpaceX priced approximately 555.6 million shares at $135 each under the ticker SPCX, with a select number of brokerage firms designated to distribute shares to US retail customers.
Do space companies pay dividends?
Diversified defense contractors may pay dividends, while early-stage pure-play space companies generally reinvest earnings into research and development. Dividend payments are never guaranteed and depend on each company's financial position and board decisions.
What are the primary risks of investing in the space sector?
Key risks include:
How do I start trading space stocks?
Investors can use regulated brokerage platforms to access space stocks and aerospace and defense stocks. Stock trading on the Crypto.com App is offered by Foris Capital, a regulated US broker-dealer and member of FINRA and SIPC. Customer assets held at Foris Capital are protected by SIPC up to $500,000 per client, with a $250,000 sub-limit for cash. This protection applies only in the event that a SIPC-member broker-dealer fails financially.
SIPC does not cover declines in the value of assets, losses from unsuitable investment advice or situations where assets lose all their value. SIPC protection is not a substitute for diversification or careful position sizing.
If you'd like to explore stocks and ETFs further, the Crypto.com App offers access to US-listed equities, along with support for cryptocurrencies.
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