The space sector is no longer the domain of governments alone. A growing wave of agile startups is rewriting the rules of how we reach, use and mine space. These ventures are pushing innovation beyond Earth itself, enabling everything from in-orbit servicing and lunar logistics to hyperspectral imaging and satellite mobility. As the global space economy is projected to reach around US$1.8 trillion by 2035, private enterprise is increasingly central. In this article we profile several of the most forward-looking startups driving this transformation and consider how entrepreneurs, investors and governments can engage with this “NewSpace” era.
1. The Current Landscape of Space-Tech Innovation
The explosion in space-tech startups is underpinned by three powerful trends: cheaper launch access, modular satellite systems, and the growing commercialisation of orbital services. According to a recent overview, there are 69 space tech startups to watch in 2025, across satellite manufacturing, launch, in-orbit servicing and data services.
Moreover, one analysis titled “Space Tech 2025: Private Companies Leading the Race” describes a tipping point where “exploration” is giving way to “utilisation” of space.
The implication for entrepreneurs: now is a key moment to align capabilities with adjacent sectors (AI, robotics, materials) and to identify non-traditional markets (e.g., Earth-data derived from space, in-orbit refuelling).
Key growth vectors
- In-orbit services & debris removal: With thousands of satellites and rocket stages orbiting Earth, servicing and de-orbiting become critical.
- Satellite applications & Earth observation: Higher resolution, new sensors, hyperspectral imaging enable new business lines.
- Lunar & cislunar economy: Transport, logistics, habitat and data-centre models aimed at the Moon and beyond.
- Launch and mobility solutions: Firms offering more flexible access to orbit, or movement between orbits.
Each of these is represented by startups we highlight below.
2. Startup Spotlights
2.1 Astroscale Holdings Inc. (Japan / global)
Astroscale is a standout in the orbital-services sector, focused on debris removal, satellite life-extension and inspection. Its mission arises from the recognition of a mounting threat: collisions in orbit that could jeopardise space infrastructure.
Key developments:
- In February 2024, it launched the ADRAS-J craft to inspect a large rocket stage in orbit, a major milestone in active debris removal.
- It secured an ~$81 million contract from Japan’s space agency (JAXA) to remove an upper-stage rocket body showing commercial viability.
Why it matters: As governments and satellite operators recognise the liability of space debris, Astroscale offers infrastructure to extend satellite life or safely remove defunct assets. For entrepreneurs this signals opportunity in servicing, robotics, and space-sustainability.
Business tip: Align with regulatory regimes, the legal framework for debris removal is still emerging.
2.2 Impulse Space (USA)
Impulse Space is a startup targeting the in-space mobility niche moving satellites and payloads between orbits and even to the Moon. Founded by Tom Mueller (engineer from SpaceX), it combines propulsion expertise with new market needs.
Key developments:
- Its Mira orbital-transfer vehicle launched on SpaceX’s Transporter-9 rideshare mission.
- In October 2025 the company announced a plan to launch lunar-cargo delivery services by 2028.
Why it matters: As more payloads venture beyond LEO into GEO, lunar orbits or cislunar space, the need for “space taxis” will grow. Impulse is positioning for that.
Business tip: For investors and partners, look at how the company scales from LEO to translunar missions scalability and reliability will be key differentiators.
2.3 The Exploration Company (Germany / Europe)
The Exploration Company (TEC) is a European player building modular reusable spacecraft known as Nyx aimed at cargo missions to low-Earth orbit (LEO), lunar orbit, and eventually the Moon itself.
Key developments:
- Raised ~€40 million in a Series A round to build Nyx.
- Selected by the European Space Agency (ESA) for cargo-vehicle studies, marking space-agency trust.
Why it matters: Europe has long been reliant on launch and spacecraft built elsewhere; TEC signals a move toward continental autonomy. Also, reusable logistics is a growth vector.
Business tip: For entrepreneurs in Europe or MENA (Middle East & North Africa), this model suggests partnerships in region-based supply chains (manufacturing, components, ground systems) may offer competitive advantage.
2.4 Pixxel (India)
Pixxel is a fast-rising startup based in India focused on hyperspectral imaging satellites and Earth-observation services. Its mission is to give customers richer data from space “health monitor for the planet”.
Key developments:Won recognition: named in TIME’s “100 Best Inventions” in the Sustainability category.
Why it matters: Data services from space (for agriculture, mining, energy, infrastructure) is a high-growth segment. Pixxel shows that emerging-market firms can become competitive globally.
Business tip: Entrepreneurs should explore downstream service layers, the raw data is valuable, but insights, vertical applications and analytics will unlock scale.
Has already launched demonstration satellites and plans to deploy a commercial constellation by 2025-26.
2.5 Bellatrix Aerospace (India)
Bellatrix Aerospace, headquartered in Bengaluru, specialises in satellite propulsion systems and orbital-transfer vehicles (OTV). Although originally focused on small-lifts, it pivoted to propulsion technology and orbital vehicles.
Key developments:
- Signed a contract with India’s national operator NewSpace India Limited (NSIL) for integration of its Pushpak OTV.
- Estimates cost to launch via OTV could drop to ~$25,000/kg for LEO using its systems.
Why it matters: Lower-cost in-orbit mobility and launch solutions are vital for the proliferation of small-sat constellations and non-traditional payloads.
Business tip: For suppliers and ecosystem participants in India or Asia, propulsion and modular OTV systems are enabling technologies the upstream components still have room for innovation.
3. Strategic Themes & Business Implications
3.1 Democratisation of Space Access
What used to require billion-dollar budgets can now be done by startups with tens of millions — thanks to rideshare launches, modular satellites and mature supply-chains. This opens new business models (data-as-a-service, orbital logistics, servicing).
3.2 Shift from Launch to Utilisation
The first wave of space startups focused on rockets; the next wave is about what you do once you’re there (e.g., servicing, mining, orbital manufacturing). Impulse Space and The Exploration Company reflect this shift.
3.3 Sustainability & Regulation as Opportunity
With the orbital environment getting crowded, sustainability (debris removal, life-extension, servicing) becomes not just a responsibility, but a business domain. Astroscale is a front-runner here. As one article notes, “There are also no rules for the removal of existing space debris, raising concerns for companies entering the market.” Entrepreneurs should monitor regulatory frameworks because early-mover advantage may accrue to firms that align with compliance.
3.4 Globalisation of the Space Economy
Beyond the US, we’re seeing vibrant ecosystems in Europe (The Exploration Company), Asia (Pixxel, Bellatrix), and Australia (not profiled here but visible in other space-tech reports). The global spread means cross-border partnerships, localization and multi-region supply chains will matter.
3.5 Vertical Integration vs. Platform-Play
Some firms are vertically integrated (Propulsion + Launcher), others focus on platforms or services (Earth-data analytics). The business model choice will affect capital intensity, risk profile and time to market. For example, Pixxel focusing on data may scale faster than a fully new launch vehicle.
4. Challenges to Navigate
- Capital intensity & cash burn: Space hardware takes time, testing is expensive, risk of failure remains high.
- Regulatory & policy complexity: Export controls, orbital-service doctrine, debris liability, space-traffic management are all evolving.
- Technology risk & schedule risk: Many missions slip; e.g., the launch anomaly of German startup Isar Aerospace.
- Revenue model development: While launch and satellite hardware get headlines, generating stable recurring revenue from services is still nascent.
- Supply-chain and manufacturing maturity: Scaling production (satellites, propulsion units, modules) often poses bottlenecks for startups.
5. Outlook & Opportunities for Entrepreneurs and Investors
- Opportunity areas: Space-based data analytics, in-orbit servicing robotics, lunar logistics, small-sat constellations, propulsion/OTV systems, ground-segment automation.
- Investment horizon: Many of these companies are still in Series A/B phase; expect exit or scale events in late-2020s as lunar missions and megaconstellations mature.
- Partnership strategies: Government/agency contracts remain important (e.g., ESA with The Exploration Company). Startups should design to align with agency road-maps rather than purely commercial assumptions.
- Regional focus: Emerging markets (India, Middle East, Africa) present growth arenas for space-tech services e.g., Pixxel in India, Bellatrix in Asia.
- Dual-use mindset: Space technologies often have Earth applications (i.e., remote-sensing, IoT satellite backhauls, mobility). Startups and investors should keep Earth verticals in view.
Conclusion
We are in the midst of a transition where space is evolving from an expeditionary frontier to an operational domain. The startups we examined, Astroscale, Impulse Space, The Exploration Company, Pixxel and Bellatrix Aerospace, exemplify how entrepreneurial energy is powering this shift. For entrepreneurs, investors and policymakers the key questions are: how quickly can we move from access to utilisation? How will business models mature? And which regional ecosystems will emerge as dominant? As the space economy scales, new business lines, value-chains and global partnerships will define winners.
Actionable take-aways
- Identify specific niches in space (servicing, logistics, data) rather than broad ambition.
- Align with regulatory change and institutional programmes early.
- Create business models that combine space-specific hardware with Earth-based demand.
- Consider global ecosystems, especially emerging markets.
- Be prepared for long timelines, high risk and the need for technical and operational excellence.
Looking ahead, as lunar missions and cislunar logistics ramp up, the space startup world will increasingly resemble a terrestrial industry: supply-chains, services, after-markets. Those startups that build the infrastructure and operational backbone of space will likely capture outsized value.
