The space industry continues to demonstrate resilience and adaptability in the face of evolving market conditions. Despite the challenges of 2023, we’re seeing encouraging signs of stabilization and growth.
The Space Impulse team has collected and analyzed the data for Q2 2024 from the Space Impulse Market Intelligence Platform and collated the findings in the Space Impulse Market Intelligence Platform Q2 2024 Report.
Notable Q2 2024 Space Industry Findings
Q2 2024 witnessed a 34% year-over-year increase in investments, totalling $3.3 billion. While lower than Q1’s $3.9 billion, it still represents a significant rebound from 2023 when investments totalled only $12.1 billion. About half of this quarter’s funding activity was associated with the Government of Canada providing $1.6 billion debt financing for Telesat’s Lightspeed project followed closely by Space Pioneer’s $207 million Series C round from a consortium of private and state-linked investors.
Government contracts played a crucial role in driving industry growth. NASA’s $6 billion Rapid Spacecraft Acquisition Services and $4.6 billion Artemis mission contracts, and the U.S. Space Force’s $5.6 billion National Security Space Launch Phase 3 program, underscore an ongoing commitment to space exploration and defense.
M&A activity has surged, with 11 deals announced in Q2, including SES’s $5 billion acquisition of Intelsat. The deal had been years in the making. SpaceX’s dominance in LEO is now so obvious that any antitrust concerns were mitigated. We see a great deal that is highly accretive with significant cost synergy potential (up to 85% of equity value!) At the same time, SES maintains its investment grade rating due to limited debt and a positive cash flow impact on Day 1.
Looking ahead, we anticipate continued momentum in the space sector. The easing interest rate environment is likely to enhance investor confidence and stimulate further growth. However, challenges remain, particularly regarding supply chain risks and underwrite-able market size projections.
Want to learn more? Get your free copy of the Space Impulse Market Intelligence Platform Q2 2024 Report.
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