In the latest report on investment trends in the space industry, venture capital firm Space Capital predicts that Boeing and Airbus could sell their space divisions in 2025. This will mark a significant change in the commercial space market. The report notes the difficulty of these aerospace giants to hold their ground amidst the rapid growth of the industry.

“Selling the assets of such prominent government contractors changes the competitive landscape of the space economy, creates new opportunities for governments and commercial companies, and increases defense risks,” the report said.
Space Capital predicts that 2025 will be one of the most transformational years for the industry. This prediction was influenced not only by the rapid pace of technological change, but also by expectations of a “strong stance” by the Trump administration to support growth and reduce regulatory barriers.
Global Defense Challenges
Among the key factors affecting the industry is the rise in defense spending. Of particular concern is China’s space capabilities, especially its BeiDou navigation system, which is increasingly competing with GPS. In response, the U.S. is deploying alternative positioning, navigation, and timing systems and developing the Resilient Global Positioning Systems (R-GPS) program, which will improve the existing GPS through commercial partnerships.

The defense orientation is clearly visible in the actions of key market players. For example, Redwire announced the acquisition of drone manufacturer Edge Autonomy for $925 million. This signals a strategic twist to defense technologies. Also, Voyager Technologies (formerly Voyager Space) has restructured, focusing on defense and homeland security ahead of its planned IPO.
Space startups integrate defense strategies
Smaller players are also joining the defense initiatives. For example, surveillance satellite operator Planet and satellite manufacturing startup K2 Space recently recruited former military personnel to their teams. This shows their intentions to get more military contracts and strengthen their position in the defense segment.
According to Space Capital analysts, these changes form a new reality for the space economy. Private companies are gradually becoming key partners of governments, while at the same time competition and geopolitical risks in space are increasing.
Earlier we reported on how Boeing was looking for buyers for the failed Starliner.
According to spacenews.com