Space startup funding is set to increase competition from the US and China by 2025, the report added.

By Akash Sriram

(Reuters) – Funding in the space industry is on the rise amid rising U.S.-China tensions after startups in the sector completed $8.6 billion in investments, according to a report by space investment firm Seraphim Space.

China is stepping up efforts to go toe-to-toe with Western countries in areas such as satellite production and rocket launches to meet its growing demand for space-based imaging, intelligence and data.

“This will continue to drive investment into the capital-intensive sectors of the space industry in the year ahead,” said Lucas Bishop, investment partner at Seraphim Space.

In the year Notable deals in the fourth quarter of 2024 include Apple’s acquisition of a 20 percent stake in satellite operator Globalstar for $1.5 billion and $1.25 billion in secondary shares of SpaceX.

Firefly Aerospace’s $175 million deferred financing in November was the largest deal in the fourth quarter, valuing the Texas-based rocket maker at more than $2 billion.

SpaceX CEO Elon Musk could find influence in the incoming Donald Trump administration as well as billionaire entrepreneur and private astronaut Jared Isaacman’s bid to lead NASA.

If confirmed, the Shift4 Payments founder and CEO will oversee the space agency’s $25 billion budget and future missions.

“Funding for more cost-effective, private-sector solutions can further boost investment across the board in companies offering other space technologies,” Bishop added.

The rivalry between China and the United States is likely to intensify after Trump takes office next week, as funding for the Defense Ministry’s expanded commercial space program should be strengthened, Seraphim Space said.

(Reporting by Akash Sriram in Bengaluru; Editing by Krishna Chandra Elluri)