Space Tech Poised for Major Investment Surge, Says OTB Ventures Co-Founder

Insider Brief

• Venture capital investment in space technology is expected to rise significantly, driven by increased corporate adoption and AI integration, according to Adam Niewinski of OTB Ventures.
• AI is playing a growing role in space innovation, enhancing satellite imaging, data analysis, and autonomous space operations, further fueling investment.
• Geopolitical competition among major nations is pushing space development, with Niewinski warning that countries and companies must invest or risk falling behind in the next two decades.

Venture capital investment in space technology is set to grow significantly in the coming years, according to Adam Niewinski, co-founder of OTB Ventures.

In an interview with CNBC-TV18, Niewinski pointed to the $6 billion raised by space startups in 2024 as just the beginning of a larger trend.

“The number for 2024, it’s not that big. I believe it’s going to be much bigger soon,” he said, citing the increasing involvement of corporate players that are using space-derived data as a key driver of this growth.

Corporate Adoption and Commercialization

Historically, space technology has been largely funded and controlled by governments, with innovations such as GPS and satellite communications trickling down to consumer applications. That dynamic is shifting as private companies recognize the value of space-generated data.

“We now see a lot of corporates starting to use space tech data,” Niewinski said.

That trend shows the commercial potential that is beginning to drive investment in the sector.

Unlike previous decades, where space exploration was primarily about national pride and scientific discovery, Niewinski suggested that today’s investments are becoming increasingly commercial in nature.

“It’s not just for fun,” he said. “It’s not just for someone to say, we will send people to the moon. It’s exciting, but it used to be not really commercially driven, but today it is.”

AI’s Role in Space Innovation

Niewinski also emphasized the growing interplay between artificial intelligence (AI) and space technology, which indicates that advances in AI will help accelerate space exploration and innovation.

“Space tech is the next big thing. It is probably hard to judge whether AI is bigger or space tech is bigger because these are completely two different areas,” Niewinski said. “But I would say they both are equally important.”

AI is increasingly being integrated into satellite imaging, data analysis, and autonomous space operations, making it a critical component in space sector expansion. This convergence is expected to further fuel investment, as both technologies evolve in tandem.

Geopolitical Competition and Strategic Investments

International competition in space is another factor shaping the industry’s trajectory. The United States, China, India, and the European Union are ramping up their space capabilities, which, according to Niewinski, isn’t really new, but, rather. mirrors historical patterns of geopolitical rivalry.

“It’s always been the case that some of the countries who are competing against each other, it was pushing the advancement,” he said. “We have seen this with JFK in the US declaring that they are going to be sending people to the moon, just because Russia sent Sputnik to space.”

He argued that staying competitive in space will be critical for countries and corporations alike.

“If you do not have your own launchers, if you do not have your own satellite communication, if you are not playing a part of this game, then you will be nowhere in 10 to 20 years’ time because space is going to develop,” he said.

Future Outlook

While exact figures remain speculative, Niewinski referenced industry estimates predicting substantial future investment. While trying to predict those totals for future investment in the space industry is speculative, Niewinski has seen figures as high as $60 billion.

As private sector participation increases and AI continues to enhance space capabilities, Niewinski envisions the next decade as an explosive commercial space venture era. The transition from government-led space initiatives to a market-driven industry could accelerate breakthroughs in satellite technology, Earth observation and even human spaceflight.

With space no longer an exclusive domain of national agencies, the sector is primed for a new era of commercial innovation and investment.

“The most important thing is that the world is changing,” Niewinski said. “And that change is happening now.”