S&P Global (SPGI) investor relations material

Market trends and capital flows

• SpaceX's IPO raised $86 billion, over half of the $146 billion in U.S. IPOs for the first half of the year, catalyzing renewed interest in the space technology sector.

• Space technology M&A and fundraising reached $338 billion across 193 transactions in the first half, up from $22 billion in the same period last year.

• Major deals include Amazon's $11 billion acquisition of Globalstar and Rocket Lab's $8 billion purchase of Iridium, both aiming to compete with SpaceX's dominance.

• Companies are integrating satellite operations, spectrum, and infrastructure to enable direct-to-device services and expand launch capacity.

• The sector is witnessing a shift toward vertical integration, with firms acquiring capabilities across different orbital planes and technology stacks.

Technological evolution and infrastructure expansion

• The new space economy is driven by reusable rockets, smaller satellites, and lower launch costs, enabling commercial opportunities beyond traditional government-led programs.

• LEO satellites, such as Starlink, have dramatically increased the number of satellites in orbit, with about 17,000 active satellites now, two-thirds belonging to Starlink.

• Satellite broadband has grown from 2% to over 3% U.S. market share in the past year, with Starlink leading subscriber growth.

• Starlink's ARPU is declining as it competes for market share, while its EBITDA margins remain strong at around 60%.

• LEO satellites have a typical lifespan of five years, with rapid deployment and de-orbiting cycles compared to legacy GEO satellites.

Use cases, adoption, and emerging applications

• Satellite connectivity is widely adopted in sectors like oil and gas, with 67% of surveyed enterprises leveraging it, mainly for remote asset monitoring.

• IoT satellites, often CubeSats, are smaller, cheaper, and tailored for specific use cases, though many startups have pivoted or consolidated due to business challenges.

• The Ukraine conflict accelerated the use of commercial satellites for military and open-source intelligence purposes.

• There is a surge in FCC filings for orbital data centers, with ambitious plans from SpaceX and Blue Origin, though actual deployment may lag filings.

• Space edge computing is emerging to process data in orbit, reducing downlink constraints and supporting lunar and asteroid operations.