The NewSpace sector, and the space industry more broadly, are often misunderstood.
We see this in the myriad of worthy programs and initiatives that agencies undertake to ‘explain the value of space’ to the public, or in the books, white papers, talks, and consulting services based around the concept that ‘the space domain is open for business.’
With space becoming ever more integral and integrated into our daily lives, it is important that stakeholders at all levels of the value chain have a clear understanding of the area, and where it is going.
To help with this, we asked a range of satsearch Trusted Suppliers what they thought about how the NewSpace sector is defined today, whether the label itself is still valid, and what they believe will happen in this area in 2025 and beyond.
Get ready for a wealth of knowledge and insights directly from operators in active space companies!
Contents
- Space is the domain of the moment – by Cdr. Ronnie Nader of the Ecuadorian Space Agency (EXA)
- Versatility and sustainability – by Mikołaj Podgorski of Scanway S.A.
- Scalability and sustainability – by Tjorven Delabie of arcsec
- Customer respect and market consolidation – by James Barrington-Brown of NewSpace Systems
- Heritage, reliability, and standardization – by Lukas Felderhoff of IQ spacecom
- Space 2.0, and beyond – by Federico Pergolesi of Paradigma Technologies
- NewSpace is the viable alternative and market consolidation to come – by Thys Cronje of Simera Sense
- Timelines and geopolitics – by Aland Ali of ReliaSat
- Customer expectations and changing regulations – by Jaroslav Laifr of SkyFox Labs
- The importance of agility – by Tushar Goyal of AAC Clyde Space
- Business fundamentals and the impact of defense priorities – by José Miguel and Alberto Ordaz Acero of SOLAR MEMS
- The role of government and new launch options – by Dr. Stefan Frey of Vyoma
- Time to market – by Jason Cerundolo of Colossus
- Business challenges and launch providers – by Tomasz Palacz of Liftero
- Consolidation, innovation, and the challenge to access finance – by Julien Hennequin of Tensor Tech
- Boldness, versatility, and collaboration – by Nicolò Benini of NPC Spacemind
- An evolving industry sector – by Shreyas Urunkar of Akula Tech
- The changing nature of NewSpace in 2025 and beyond – by Bryan Dean of Dragonfly Aerospace
- The blurring of NewSpace and the growth ahead – by Peter Mendham of Bright Ascension
- Speed, heritage, and professionalism – by Edwin Faier and Joshua Duncan of Xiphos Systems Inc.
- Adaptability, defense, and sustainability – by Jan Smolders of Space Inventor
- Creating innovation based on supply chain strength – by Michael Seidl of Texas Instruments
Please note that the opinions provided by each of the supplier representatives in this article are their own and may not necessarily reflect those of their company, or those of satsearch. This is not a contentious or controversial piece, but it does incorporate genuine, first-hand knowledge and insights from professionals working at the forefront of the industry, which give deep insights into how suppliers are operating in the NewSpace sector in 2025.
Space is the domain of the moment
Cdr. Ronnie Nader is an experienced astronaut and is Chief Designer and Director of Space Operations at the Ecuadorian Space Agency, EXA (Agencia Espacial Civil Ecuatoriana). Cdr. Nader shared his thoughts with us on NewSpace and what 2025 could bring for commercial companies:
I think that at this point in time, 2025, NewSpace is no longer new. It’s the norm as very few people would say that space is a realm for governments only.
I think that 2025 will be a year of big changes and, as such, challenges and opportunities will arise depending on each company’s position and approach to business.
The more time passes, the more governments and the private sector will realize that space is no longer the domain of the future, but it is the present and many will try to catch up. This is where opportunities lie.
Such opportunities are certainly there for the taking and it will be interesting to see how each industry sector evolves this year – as growth won’t be uniform.
Cdr. Nader’s point that other players will attempt to catch up over time is important. For example, we’ve seen many instances of terrestrial companies taking an interest in space, and often bringing huge existing resources and distribution to new space services.
Many suppliers will be considering how they can get involved in such projects, or at least position their offers to be attractive to new market entrants. It’s time to act commercial in a commercial market!
More about EXA – founded in 2007, EXA is an independent civilian organization in charge of the administration and execution of the Ecuadorian Civilian Space Program. EXA is backed by the Ecuadorian State through the Ecuadorian Air Force and leads an ambitious program of planetary and space science, educational development, and commercial activity.
Versatility and sustainability
Mikołaj Podgórski is Chief Operating Officer (COO) of Scanway S.A. and shared with us some thoughts on the importance of adaptability in the space industry:
The term ‘NewSpace’ has evolved beyond merely referring to a new wave of space companies.
Initially, it distinguished pioneering, agile startups from traditional, government-led space initiatives. Today, it encompasses innovation, privatization, and the democratization of space.
While some may argue that it’s becoming outdated, its enduring value lies in its ability to encapsulate a spirit of disruption and forward-thinking that continues to inspire new entrants and investors in the market.
Until a more apt term emerges that fully encapsulates this essence, ‘NewSpace’ remains a valuable descriptor in the industry.
In 2025, NewSpace companies will likely encounter heightened demands for sustainable and environmentally-friendly space practices. As public awareness and regulatory scrutiny intensify regarding space debris and environmental impact, companies will need to innovate and minimize their ecological footprint.
Moreover, the expansion of mega-constellations presents both significant opportunities and logistical challenges, necessitating advanced coordination and technology to manage crowded orbits safely.
Simultaneously, the pursuit of lunar exploration and mining opens new frontiers and business models that could reshape the industry’s landscape.
These trends emphasize the significance of adaptability and foresight for NewSpace companies as they navigate the evolving landscape in the coming years.
The sustainability value of a space mission is a complicated concept. Alongside the hardware lifecycle analysis, a typical mission can have a distributed software stack (potentially incorporating energy-hungry artificial intelligence (AI) solutions) that needs to be considered in operational sustainability. And this is before we even start to consider the evolving situation in orbit, where debris and traffic management are becoming ever more prominent each year, as Mikołaj highlights.
In addition, many missions are built to contribute, directly or indirectly, to sustainability efforts on Earth. And these are factors that can also be considered when we take a holistic look at a mission’s sustainability.
Also, adaptability has always been important for space companies. And as the industry changes and evolves at a faster rate, it is becoming more and more important each year.
About Scanway S.A. – based in Poland, Scanway is a provider of advanced optical solutions, payloads for satellites and space cameras. Scanway offers an array of Assembly, Integration, and Test (AIT) solutions through its dedicated manufacturing facility, and is also very active in research and development (R&D).
Scalability and sustainability
Tjorven Delabie, Chief Executive Officer (CEO) of arcsec, explained the two factors that he believes will characterize NewSpace in 2025:
We think that two pillars – Scalability and Sustainability – will be at the forefront in 2025. Let’s look at these in turn:
Scalability: we can expect to see a phase of market consolidation, led by mergers and acquisitions.
This in turn means that companies will seek more scalable solutions, which component and system suppliers should be ready to provide.
Sustainability: as the regulations on clean space develop, we can look backwards and recognize the word “sustainability” in most of our talks.
This year will be a natural evolution for sustainable initiatives, that we expect may evolve into incentivized or mandated initiatives in the future.
Mitigating and controlling the spread of space debris will become a priority for regulators, and in turn for the industry.
Scalability is crucial, and Tjorven is right to point it out. It also means different things to different companies – it really depends where on your journey you are and the expectations your customers have.
For example, we’ve seen production rates and lead times for similar components vary dramatically, but this isn’t necessarily an issue if customer requirements are met by each manufacturer.
In addition, the threat of space debris has been on the agenda for some time, and it is very interesting that Tjorven has highlighted both the mitigation and control aspects of the problem, as both are vital.
How exactly this domain evolves in 2025 is hard to predict, but the vast majority of stakeholders in the industry will be watching with interest, if not actively participating!
About arcsec – Belgium-based arcsec is a spin-off company from KU Leuven University. It provides attitude determination and control systems, including fully autonomous ADCS solutions and standalone star trackers and reaction wheels.
Customer respect and market consolidation
James Barrington-Brown, Founder and Global Chairman of NewSpace Systems, gave us his insights on how descriptions of the NewSpace sector have evolved:
As someone who started their space career when there was only old space, I think the term still has a lot of use in conversations with Customers. However, there are different people with different definitions.
When I started NewSpace Systems, NewSpace was still associated with the more extreme end of future space, such as asteroid mining, lunar bases and solar power from space for example. It seems to have ‘grown up’ since then, but is still too often used to describe Cubesats and higher risk missions.
I like to define NewSpace as commercial space, where there is mutual respect between the Customer and Supplier to get the right balance between risk and cost.
Old space typically meant the customer (often Government) would define everything down to the last nut and bolt, and the supplier just had to supply, with full compliance.
I find that contracts nowadays are much more of a conversation, resulting in the Customer benefiting from the way the supplier has found new methods to reduce cost in the materials and processes.
This blurring of the lines is certainly something we’ve seen as buyers in the industry have grown more savvy. Increasingly, mission designers and their end-users, are more interested in the quality of results than in how those results are achieved.
Suppliers are adapting their marketing to meet these requirements, focussing less on the technical aspects and more on the benefits that are created. Something every industry goes through as it becomes increasingly commercial and established.
The respect between supplier and customer that James has highlighted is part of this – when both parties trust in the other’s motives and expertise, the procurement conversation can be far more valuable and collaborative. Which is to everyone’s benefit.
We also asked James what he thought NewSpace companies can expect in 2025 and he shared the following:
I was asked this question in a conference panel session recently, and my answer was ‘go big or go home’.
There are way too many people coming into the space industry, with many having great ideas but no understanding of the difficulty of the space environment. I just don’t think it is worth joining the industry with some niche technology which is difficult or impossible to scale.
In addition, to scale a technology in the upstream space business takes a lot of capital, and, if you don’t have it, it’s likely that one of your competitors has. So you need to move very quickly to scale and find the finance to do that.
But fundamentally there still has to be a big market for that solution – Business 101 – for you to succeed.
I see in the next couple of years many of the smaller, less well financed companies disappearing through failure or acquisition with the result of there being fewer companies, but bigger more sustainable ones in operation.
James paints a realistic yet challenging picture of the industry that he has been working at the forefront of for many years.
We’re seeing various signals of market consolidation in some sectors (though these are, as always, company-dependent) and moves to re-focus and ensure longevity by many businesses.
One of the most striking examples in recent months has been a move by Boeing to sell off most of its space business – showing that even the most well-capitalized players are affected by market forces.
As James points out, the challenges of operating in the harsh environment of space remain significant, even with the new innovation brought to market every year. And they ensure only the best technologies can compete.
When this is compounded with the difficulties of scaling a business and accessing a large enough market to justify capital expenditure, we have a situation where only the best companies with the best technologies have a chance to win.
This is a good situation from the market’s perspective, and one that we agree with James will play out further in 2025.
About NewSpace Systems – NewSpace Systems (NSS) is a trusted multinational manufacturer of spacecraft components and subsystems, headquartered in South Africa and with additional branches in North America, Europe, and Oceania.
Heritage, reliability, and standardization
Lukas Felderhoff, Sales Engineer at IQ spacecom, shared some insights into what NewSpace is in 2025, and where the sector is going:
As NewSpace is being used by many companies in different ways, and representing different standards, it is quite difficult to find a common definition. Basically, from my point of view NewSpace represents any company taking a different approach to the classical space attitude.
Based on this understanding, NewSpace is still a big thing, but requires flight heritage and reliable procedures in the company.
In 2025 I think NewSpace companies will now be facing higher performance and reliability expectations because, although many demonstration missions have been run successfully, the resulting services and constellations have often been built to suppliers’ own specific requirements.
This means that NewSpace companies will have to meet higher standards, and more generally, NewSpace customers have an increasing demand for higher quality.
In addition, many NewSpace companies are also standardizing their procedures and manufacturing on the one hand to meet requirements and on the other hand to meet the growing demand for products of the market.
With more in-orbit demonstration missions being successful, and more companies moving on to full deployment phases, I think the market will grow much faster which will result in some very positive developments, especially for NewSpace.
Flight heritage in the commercial space industry is a critical concept. We often discuss TRL 9 as a binary marker – you’ve either proven your tech in orbit, or you haven’t – and this is how many, though not all, potential customers see it.
But as Lukas explains, being a successful supplier in today’s industry also requires reliable production procedures, with some level of standardization, to ensure manufacturing excellence.
And although demand is increasing, so too are competition and customer expectations – so flying a product once and then going to market is probably not enough to lead to long-term success.
Lukas’ insights reflect what we observe at satsearch on a regular basis. Space companies need to strive for high-quality in all facets of the business, from innovation through to reliable production and customer service. We expect to see more such maturity in 2025 across all levels of the supply chain.
About IQ spacecom – located in Berlin, Germany, IQ spacecom is a business unit of IQ Technologies for Earth and Space GmbH. IQ spacecom comprises high-performance radio communication solutions providing flexible and highly efficient broadband data communication for small satellites. The equipment has been qualified for several years of operation in low earth orbit (LEO) and is used for scientific missions, Earth observation, remote sensing and communication solutions.
The outstanding hardware and software platforms enable a fast, flexible and reliable adaptation to customer-specific requirements. Dedicated communication systems can be provided for instance for multi-access satellite solutions, inter satellite links (ISL) or individual applications.
Space 2.0, and beyond
Federico Pergolesi, Chief Technology Officer (CTO) of Paradigma Technologies, shared some thoughts on the characterization of NewSpace in the modern industry:
The term ‘NewSpace’ has been instrumental in distinguishing the commercial and innovative approaches of the past two decades from traditional aerospace practices. It has served a vital role in shaping perceptions of the industry, but its relevance may be diminishing as the space sector matures and diversifies.
Instead, we might embrace a framework that reflects this progression, such as Space 1.0, Space 2.0, and Space 3.0.
Space 1.0 represents the era of national programs and exploration, driven by government agencies and geopolitical competition.
Space 2.0, as described in Rod Pyle’s homonymous book, symbolizes the rise of private players, cost-reducing innovations like reusable rockets, and a shift to practical applications such as Earth observation, small satellite constellations and space logistics.
From a market perspective, NewSpace still holds value as a term to highlight innovation and the rise of entrepreneurial players. However, as competition increases and space activities expand globally, the market is moving toward greater accessibility and integration across industries.
While we remain in Space 2.0, early indicators point to the eventual emergence of Space 3.0, a future phase that could be defined by interplanetary ambitions, space democratization, and a strong focus on sustainability.
Federico’s proposed re-classification of NewSpace and old space to Space X.0 is a fascinating idea – and has a clear comparison in various technology fields (e.g. web 2.0, industry 4.0 etc.)
From a practical perspective the shift to a more mature and diversified industry, and one focussed heavily on sustainability issues, certainly matches with our experience.
In 2025 a good space technology business has to have both good space technology and good business processes to compete effectively.
About Paradigma Technologies – a Slovenian company founded in 2019 and based in Sežana, specialized in high-frequency RF solutions for the New Space industry. The company focuses on developing advanced millimeter-wave telecommunication systems for small satellites, CubeSats, drones, and Satellite-On-The-Move (SOTM) applications.
Committed to innovation and reliability, Paradigma Technologies delivers solutions that enhance performance and energy efficiency while minimizing size and weight. The product portfolio spans a range of frequencies from X Band to V Band, designed to meet the stringent requirements of modern telecommunication systems.
NewSpace is the viable alternative and market consolidation to come
Thys Cronje, Head of Business Development at Simera Sense, shared some insights into how he believes the NewSpace sector is understood and valued today, and the financial challenges that suppliers will face in 2025:
Traditional space companies will face even more financial pressure as they see increased competition from the newspace sector. However, the newspace industry is maturing and seen as a reliable alternative for the risk-averse and bureaucratic traditional space.
Therefore, even large institutions and agencies will rely more on the newspace industry to pursue their ambitious goals, thus blurring the lines with traditional space.
In the Earth Observation industry we will see more newspace satellite mission operators delivering Earth Intelligence to governments, agencies and the defence and intelligence sector.
The biggest challenge for newspace companies will be to prove their business model and deliver a return on investment. Over the last couple of years, large amounts of funding were allocated towards the commercial newspace sector with limited returns to show.
As new funding is limited and market demand is declining, newspace companies will be under pressure. Therefore, consolidation in this sector is on the cards.
However, this creates backward vertical integration opportunities for large organisations, like Moody’s acquisition of CAPE Analytics.
Thys’ thoughts on how NewSpace manufacturers are considered in the industry today are illuminating.
That customers sometimes choose such businesses as an alternative to “risk-averse and bureaucratic traditional space” suppliers is certainly something we’ve seen helping mission teams at satsearch.
In addition, market consolidation is a recurring theme in space industry predictions for 2025 – but Thys’ insights into the reasons for such activity, and the impacts it will have, are really useful for understanding why the industry is likely to go through these changes in the next 12 months.
About Simera Sense – Simera Sense is a leading provider of optical payloads and data analytics solutions for Earth Observation. Founded in 2018 and headquartered in Leuven, Belgium, it serves the medium to high resolution optical needs of clients worldwide.
Timelines and geopolitics
Aland Ali, Sales Director at ReliaSat, shared his thoughts on space development cycles and the impact of US politics on the global industry:
The phrase “New Space” has been useful in describing the shift from government led space initiatives to more commercially driven ventures. However, many emerging companies still rely on government tenders to fund technology development and grow their startups.
This often requires adapting to the traditional space mindset, with its stricter standards and longer project cycles, until they can secure private investment or reach commercial success.
The industry seems to be moving toward a more connected space economy where public and private sectors collaborate more closely. As the sector continues to evolve, the distinction between New Space and Old Space may gradually blur, with both merging into a shared ecosystem.
It is difficult to predict exactly what 2025 will bring for the space industry, especially given the current uncertainty in global geopolitics.
The space sector often progresses more steadily compared to other industries due to its complexity and long development cycles.
However, one development worth watching is the evolving relationship between Elon Musk and Donald Trump.
While both seem to have their own agendas, the dynamic between them could have significant global implications across multiple industries, including space.
Aland’s opinions on how NewSpace is evolving show how deeply suppliers value collaboration in the industry. And this is important as effective collaboration in space is more important than most other sectors.
The distributed trust and risk that comprises international supply chains in terrestrial sectors are brought into sharp relief in a space mission, where the hazards of the environment can quickly dismantle ineffective technology.
In addition, pointing out the potential effects of the incoming Trump administration on the global industry is important. The US government is the largest customer in the space industry, and the US also has the largest commercial market, so any changes here will ripple out to the rest of the world.
About ReliaSat – ReliaSat is a UK business at the forefront of communications and radar technology, focusing on the design and production of high-frequency transceivers, RF mm-wave systems, and advanced antenna solutions.
Customer expectations and changing regulations
Jaroslav Laifr, CEO of SkyFox Labs, shared his thoughts on the applicability of the term NewSpace and the future of the sector:
The NewSpace buzzword that has been adopted is widely understood as a label separating the expectations of the customers and players on the market, developed alongside CubeSats since their dawn in 2003.
It changes the “old space” risk-benefit ratio to unprecedented levels, bringing advancements and new approaches at much shorter lead times with reduced price and increased risk. So yes, it still has its own importance.
Customers can understand better what kind of product or service they purchase for their budgets. The old space products and services have their own place on the market and are still available too!
It seems the new US administration will impose various implications on several market parameters, including issues such as tariffs or regulations.
It will take some time to settle and adapt to it even (and mostly) from suppliers in non-US territories. It will probably affect the launch services market dominated by the US companies so far as well.
Helping customers to streamline the product use and delivery, or making the product or services integration easier, may be great opportunities to survive this transition period.
It is now more than 20 years since the “NewSpace” age began and it is more and more easy to realize which approaches, strategies, business models and resulting track records are successful, and which ones are not sustainable.
Space companies can be deeply affected by political changes, perhaps more so than suppliers in any other sector except defense.
The changing requirements, objectives, and regulations emanating from governments and international bodies can dictate many aspects of company development.
However, as Jaroslav points out, experienced suppliers have become savvy enough to understand what works, and what doesn’t, in the industry, and this expertise will enable them to adapt to an evolving business climate.
About SkyFox Labs – Prague-based SkyFox Labs manufactures the World’s First Space-Friendly™ components for CubeSats and small satellites – offering systems that cannot be found anywhere else. The team is composed of space enthusiasts, electrical and mechanical engineers, and radio amateurs and academic researchers.
The importance of agility
Tushar Goyal, Space Products Sales Manager at AAC Clyde Space, provided the following:
Absolutely, the term NewSpace remains highly relevant and valuable in today’s space industry. For me, it signifies the transformation from an era when space projects took 5-10 years to launch to one where such milestones are achieved within 1-2 years. NewSpace reflects the innovative practices and agile approaches that define modern space exploration and commercialization.
While the term is broad and occasionally misused, its core message of progress and innovation resonates strongly. It emphasizes the industry’s shift toward faster development cycles, cost efficiencies, and the democratization of access to space. However, the trend of creating subsets like NewSpace 1.0, 2.0, 3.0, and so on does little to enhance clarity or meaning. Simply put, NewSpace captures the spirit of transformation and growth the space sector has experienced, and it effectively reflects the intentions and strategies of companies embracing these modern approaches.
Looking ahead to 2025, NewSpace companies are entering a dynamic and evolving market filled with both challenges and opportunities. The increasing global focus on military and defence-related space activities highlights a shift in priorities. While this sector can be complex and competitive, it also opens up opportunities for NewSpace companies to contribute through innovative solutions and subcontracts.
Moreover, the emphasis on strengthening indigenous supply chains and national capabilities presents a unique opportunity for companies to align with domestic priorities and foster local partnerships. Although navigating these shifts may pose challenges—such as limited open bidding opportunities and complexities in international procurement—NewSpace companies are well-positioned to adapt. By leveraging their agility and innovative spirit, they can seize opportunities and play a pivotal role in shaping the future of the space industry.
Tushar’s identification of development speed, agility, and innovation is very important for NewSpace suppliers.
Although demand is growing across the world, and at all levels of the supply chain, there can still only be a handful of winners for each commercial mission or project.
So manufacturers and service providers with the ability to out-manoeuvre both large and small competitors have big opportunities.
About AAC Clyde Space – AAC Clyde Space is a specialist provider of advanced small spacecraft, mission services, subsystems, data and services. With a strong heritage, the company is a market leader in small satellite solutions and services for government, commercial, and educational organizations.
Business fundamentals and the impact of defense priorities
José Miguel, CEO of SOLAR MEMS, gave us his thoughts on the relationship between NewSpace and traditional space:
I believe the most effective way to differentiate NewSpace from traditional space is to view the latter as focused on supporting missions, while NewSpace is centered on developing capabilities. That said, I have never been particularly in favor of the term ‘NewSpace,’ as both approaches are essential to addressing the future challenges of the space industry.
In the coming years, we are likely to witness a coexistence and convergence between the NewSpace and traditional space sectors. Companies originating from the NewSpace ecosystem are likely to establish themselves as key players within the broader space industry, while traditional space companies increasingly adopt NewSpace methodologies, technologies, production techniques, and business models.
In my view, the term ‘NewSpace’ holds little value in today’s market. Instead, factors such as quality, reliability, heritage, competitive pricing, and flexibility in delivery timelines will continue to be the decisive attributes in an industry that is becoming increasingly competitive.
The focus on meeting customer demands and expectations is something we help both sides of a transaction navigate every day.
As mentioned – a good space business needs to do the fundamentals well. Customer service and a high-quality, proven offer can unlock huge commercial potential in the industry, as demand increases.
In addition, Alberto Ordaz Acero, Commercial Director of SOLAR MEMS, provided us with some insights on the road ahead:
In 2025, NewSpace companies can expect significant opportunities driven by increasing demand for satellite services, advancements in technology, and global interest in space exploration, alongside challenges like regulatory hurdles, market saturation, and space traffic management.
The growing focus on space-based defense and security will also create new avenues, as nations invest in satellite constellations for surveillance and communication.
For instance, Spain’s involvement in initiatives like the European Union Space Surveillance and Tracking (EU SST) program demonstrates how the space sector is becoming critical to national and regional defense strategies.
The space industry has always been closely integrated with defense in many areas, and that is still the case today.
Shifting demand in this area, driven by geopolitics, will often have knock-on impacts in some areas of the industry, so it will be interesting to see what plays out in 2025.
About SOLAR MEMS – Solar MEMS Technologies is a company specializing in the development of sun sensors and star trackers for space applications and other high-technology industries. With customers in more than 50 countries and flight heritage since 2009, the company has thousands of sensors in orbit and is the supplier of many satellite constellations including OneWeb among others.
The role of government and new launch options
Dr. Stefan Frey, Co-Founder and CEO of Vyoma, gave his thoughts on the use of the term NewSpace in 2025 and the expected increase in launch options this year:
Over the past decades, the commercialization of the space industry, relying less on government support and more on innovative business models, has made great strides.
Nevertheless, governments are often still involved by either funding research or by acting as anchor customers, meaning the promise of NewSpace is not yet achieved.
Until then, the term has its value. If, however, the term is used to describe a distinction between traditional incumbents and start-ups, then it is misleading and even redundant, as space start-ups (and increasingly incumbents) leverage the best from both worlds.
2025 will see the entrance of multiple new launch providers and vehicles into the market, affording companies launching satellites more choice, especially small rockets delivering into dedicated orbits.
This in turn will also accelerate the increase in number of active satellites in orbit, making satellite operations ever more complex.
That is why Vyoma is investing heavily in a highly interesting challenge: enabling satellites to become fully aware, and fully autonomous.
It would certainly be a good thing for the industry to have more launch provider options, and is a topic that has been re-visited many times over the last decade.
However, with the plethora of potential launch demonstration missions around the world in the next 12 months, and the progress made by existing players, the level of activity is possibly higher than ever.
As always though, in space it is execution that counts. Turning static fire tests and iterative launch vehicle progress into a viable commercial service isn’t easy. But the rewards are there for those that can.
About Vyoma – Vyoma is a space debris monitoring company, based in Germany, developing solutions designed to ensure safe passage through space – for everyone.
Time to market
Jason Cerundolo, CEO and Co-founder of Colossus, gave his opinions on the NewSpace sector today:
“NewSpace” is giving way to a mature industry built around differentiation and specialization.
As access to launch continues to increase, time to market is becoming the limiting factor.
Companies that can focus on what they do best rather than vertically integrating will do best.
Jason raises a very important, and sometimes overlooked, point here.
In other industries, particularly software where development and commercialization timelines seem to accelerate every quarter, the time to market isn’t major differentiating factor.
But in space, the process to build, test, and launch a system, gain heritage in orbit and then offer it on a commercial basis, can take years.
As Jason explains – when demand in the industry grows and changes, suppliers with the ability to bring new technologies online the fastest have some big opportunities.
About Colossus – Colossus is a USA-based company building supercomputers for satellites based on their custom, radiation-tolerant semiconductors.
Business challenges and launch providers
Tomasz Palacz, CEO & CTO of Liftero, gave us his insights into changes the sector is likely to experience this year.
Firstly, we asked Tomasz whether he thought ‘NewSpace’ is a term we should still be using in the industry and if it still had value in the market, he replied:
NewSpace is well-established and isn’t going anywhere anytime soon. Beyond the space sector, it’s become a useful term to raise awareness of how space benefits other industries and society as a whole.
Space is maturing, with areas like satellite manufacturing and EO already packed with established players. Frontier tech like in-space manufacturing or deep-space mining is exciting but still super risky, needing tons of capital, time, and patience.
Companies will likely face growing pressure to deliver tangible commercial results. With the fundamentals getting crowded, investors might lean more toward proven companies and scale-ups, and shy away from early-stage ventures.
On the bright side, 2025 should finally bring more diverse launch options, with Blue Origin and Rocket Lab rolling out their new rockets. Hopefully, the geopolitical space race will push us further into deep space and help us achieve some amazing things for the greater good.
Tomasz’s thoughts match those of several other suppliers who are predicting an evolving, and in places challenging, financial climate for businesses.
The point about launch options is very interesting too – as despite the headlines and media coverage this aspect of the consistently industry gets, the practical options for satellite missions haven’t changed much in a number of years.
Diversity of choice should be a good thing for the industry as a whole, but it all comes down to execution by the launch operators.
About Liftero – Liftero provides propulsion systems for satellites up to 500 kg that can be produced at scale to meet the growing demands of the new space market.
Consolidation, innovation, and the challenge to access finance
Julien Hennequin, Head of Sales at Tensor Tech, shared some thoughts on what NewSpace companies are likely to face in 2025:
In 2025 NewSpace companies are likely to experience industry consolidation, with mergers and acquisitions becoming more prevalent as firms seek to enhance capabilities and market share.
We are expecting this especially in the launcher and nanosatellite integrator industry.
We also expect a number of new technologies, such as our Small Satellites Control Moment Gyroscopes (CMGs), to become fully mature and reshape the space economy by lowering costs and enabling innovative services.
However, challenges in securing financing will persist.
Consolidation will result in both winners and losers in the industry, with business fundamentals and conditions having as much of an effect as market conditions.
And as Julien points out, such market conditions could change significantly in the next 12 months as new technology comes online.
Although, as always in space, it is worth noting that such changes may only be felt more broadly in a 24 to 36-month timeline due to mission lifecycles.
About Tensor Tech – Tensor Tech specializes in guidance, navigation, and control for satellites, offering a range of space-qualified products, from proven subsystems to reliable components, with scalable options tailored to meet customer requirements.
Boldness, versatility, and collaboration
Nicolò Benini, Business Development Manager at NPC Spacemind, shared insights on the current state of the NewSpace sector and what the future holds for the domain:
“NewSpace” has been a pivotal term, driving innovation and democratizing access to space. While its ideas are now widely embraced, the term still inspires boldness and fosters new players. Perhaps the focus should now shift to a unified, forward-thinking space economy that reflects this evolved landscape.
2025 holds immense opportunities for innovations in sustainability, in-orbit services paving the way for the emergence of new constellations, driven by technological advancements and growing demand for data and connectivity. However, rising competition, regulatory complexities, and scalability challenges will test companies’ adaptability.
Success will come to those who foster collaboration, balance rapid innovation with long-term sustainability, and embrace visionary ideas in this dynamic era.
Nicolò’s identification of the ability to foster collaboration is a standout point. There are many experienced specialist suppliers in the space industry today, building on a heritage of missions across a range of application areas.
Teams need to be able to work effectively and efficiently with these suppliers, to build consortia around specific projects or for funding calls, or create robust and adaptable supply chains to make a space service sustainable and scalable.
The rewards on offer are significant for those who can achieve these aims.
About NPC Spacemind – NPC Spacemind provides high-end, competitive solutions for the aerospace and space sectors. The company is comprised of a team of young engineers, supported by a strong and experienced production facility.
An evolving industry sector
Shreyas Urunkar, CTO at Akula Tech, shared insights on how NewSpace is evolving:
The term ‘NewSpace’ still has value in the industry, but its relevance is evolving. Initially, ‘NewSpace’ referred to the wave of private, commercial space companies that emerged to challenge the dominance of government-led space agencies and large, ‘Prime’ contractors. ‘NewSpace’ companies embody innovation, cost reduction, and flexibility, particularly with reusable rockets, small satellite constellations, and more agile business models.
However, as these companies mature and become more established players in the industry, the term ‘NewSpace’ risks becoming less meaningful. Companies like SpaceX are moving beyond their ‘new’ stage and becoming dominant space capability providers. Similarly, several established ‘Primes’ have adapted to the evolving landscape by embracing commercial partnerships and investing in space technology.
Still, ‘NewSpace’ can be useful for companies focused on commercialisation, innovation and an entrepreneurial approach to space. It aids in differentiating between traditional aerospace giants and the emerging, often more agile companies, that are modernising access to space and its utilisation.
Ultimately, while ‘NewSpace’ played a crucial role in highlighting the sector’s transformation and may still have some value for marketing and categorisation, its continued use in 2025 may not accurately represent the current state of the industry. While the term may still have some value in describing the ongoing shift, the focus has shifted towards the overall commercialisation of space activities, rendering the ‘NewSpace’ distinction less relevant.
As Shreyas indicates; it is technical excellence, commercial execution, and track record that should set suppliers apart in the modern space industry, rather than just the fact that they are different to legacy companies.
However, explaining that difference still has value. Although the industry is changing, there are many who have an entrenched view of how legacy players operate, and are looking for alternative suppliers who prioritize speed and flexibility.
About Akula Tech – Akula Tech specializes in design, development, deployment and maintenance of satellite and defence systems. Capabilities include the development of custom satellite buses for various applications such as Earth Observation, Communication, and R&D.
The changing nature of NewSpace in 2025 and beyond
Bryan Dean, CEO of Dragonfly Aerospace explained the origin and traditional use of the term NewSpace along with how he sees it today:
The NewSpace term refers to an engineering approach taken when developing, qualifying and flying space technology. The “new” prefix was used to describe an approach which largely started to be used at the turn of the 21st century and to contrast it to the typical or traditional approach of the previous century. This traditional approach involved a highly requirements-driven solution that was custom designed for a space mission and required expensive development and qualification that often took many development models and a relatively long time period.
The NewSpace approach is more capabilities-driven with existing commercial, industrial and space designs applied to a space mission. It is also often characterised by an iterative build-test-update development path rather than by exhaustive analysis before building and testing takes place.
The resulting capabilities of a mission using the NewSpace approach are often quite close to that which can be achieved using the traditional approach but with a much smaller cost and shorter development period. Not all projects are suited to the NewSpace approach so the traditional approach is still highly valuable and valid. The NewSpace approach was primarily pioneered by small companies and start-ups on smaller missions so it became synonymous with such companies and missions.
This is no longer valid because many bigger and long-standing companies now apply this development approach and on bigger and more capable missions. Likewise small companies and start-ups can also apply the traditional approach.
Therefore the NewSpace term is still relevant and should apply to companies and missions that apply this approach regardless of their size. The NewSpace approach has been successful in driving an expansion of the space industry, the number of successful space missions and the capabilities of the spacecraft on-orbit.
It will continue be a valuable engineering approach for the coming decades but probably at some point the “new” prefix will seem a bit out of place!
Bryan has given a very thorough overview of NewSpace and its evolution in this contribution, demonstrating how he thinks about the sector and Dragonfly Aerospace’s valued customers.
As all good companies in the space industry become more capable, we will continue to see improvements in both the speed and quality of technology iteration cycles.
About Dragonfly Aerospace – Dragonfly Aerospace is building a future where its compact, high-performance imaging satellites and payloads empower constellations and services to provide persistent views of the Earth in a wide range of spectrums; giving unprecedented business intelligence and improving the lives of people around the world.
The blurring of NewSpace and the growth ahead
We asked Peter Mendham, CEO at Bright Ascension, whether he believed ‘NewSpace’ is still an applicable descriptor. He responded with:
That’s an excellent question. We believe the distinction between the traditional space sector and NewSpace is evolving into more of a spectrum rather than a clear dichotomy. Historically, there was a noticeable gap between these two well-defined sectors, but as the industry evolves, the boundaries are starting to blur.
The advantages of NewSpace — such as lower costs, greater tolerance and acceptance of risk, rapid development cycles, and shorter timescales — are becoming less distinct as the commercial space market matures and the complexity of technology and missions increases.
For example, as NewSpace companies invest more heavily in hardware, technology, and development, quality assurance becomes a higher priority, naturally shifting them towards the middle of the spectrum. Similarly, traditional organisations are feeling the competitive pressure to accelerate timelines and make trade-offs, moving them closer to the NewSpace approach.
This convergence opens up exciting opportunities. It enables space technology innovators to develop their products and solutions with enhanced quality assurance, that will help navigate this middle ground and manage increasing complexity more efficiently and cost-effectively. The term ‘NewSpace’ may still have value as a reference point, but its practical relevance may continue to shift as the industry grows and evolves.
Understanding sectors of the space industry as a spectrum is an excellent way to look at things.
We’ve discussed previously that suppliers are focussing less on technical explanations and novelty, and more on end-user value. Relying less on discrete supplier labels, and more on the promotion of solutions and quality, is evidence of this.
To follow on, we then asked Peter what NewSpace companies can expect in 2025. He provided the following:
We believe 2025 will mark the beginning of a new growth phase in the space industry, one that focuses on delivering capability and efficiency over simply increasing the number of spacecraft in orbit. The focus will likely shift toward greater commercial awareness of the space-based value chain and a clearer understanding of revenue sources, particularly from the downstream sector.
During 2025, we expect the industry will start placing more emphasis on connecting the dots across the value chain, with customer-driven profitability emerging as the driving force behind technology, innovation, and space industry funding.
NewSpace companies will face the challenge of aligning their offerings more closely with end-user market demands and will discover opportunities to offer integrated solutions that enhance the efficiency and value of the entire ecosystem. This shift will open up significant potential for those prepared to adapt to a more customer-centric and commercially sustainable model.
There could be a rocky road ahead for many suppliers, but all are travelling towards some very big opportunities in the modern industry.
We hope that the new growth phase that Peter predicts will emerge in 2025, bringing a wide range of benefits to both space and terrestrial sectors!
About Bright Ascension – Bright Ascension is a UK-based space solution provider specializing in software products and services. The company’s solutions are designed to accelerate satellite mission development and operations in a cost-effective manner.
Speed, heritage, and professionalism
Edwin Faier, President of Xiphos Systems Inc., shared his thoughts on the value of the term “NewSpace” in today’s industry:
I believe that the descriptor “NewSpace” does have value today. It represents a philosophy of innovation and pragmatic risk tolerance to be able to deliver market-leading capabilities using cutting-edge technologies.
It is still needed to differentiate between traditional or old space approaches and companies.
Edwin’s views echo those of several other suppliers shared in this article, and match a lot of what we see on the demand-side in the market too.
Many teams, particularly from newer and more agile companies, are looking for results faster than traditional space agency projects, and suppliers with a NewSpace philosophy (whether or not they describe themselves as such) have a big opportunity to serve this need.
In addition, Josh Duncan, Director of Space Products at Xiphos, explained how the sector is evolving:
The demand for quality will grow as a natural outcome of increased NewSpace adoption.
The customers funding large constellations and high criticality missions will require robust process, high reliability, and demonstrated ability to scale production.
Claims without past performance will rightly face increased scrutiny. These enhanced expectations should be welcomed as they help validate and cement NewSpace’s place in the space ecosystem.
It’s clear that many see NewSpace as an industry sector that is becoming increasingly professional, to the benefit of everyone in the industry.
And, as Josh points out, it is very important that suppliers in this environment are able to utilize their track record to their advantage.
In the hundreds of interactions we have with buyers and suppliers every month, it is very common to hear the question about space technology portfolios “what has actually flown?” – make sure you have a good answer!
About Xiphos – Xiphos develops cutting-edge computing solutions tailored for extreme space environments. Utilizing automotive and industrial-grade components in a fault-tolerant architecture, Xiphos provides robust performance costing a fraction of traditional space solutions.
Adaptability, defense, and sustainability
Jan Smolders, Chief Commercial Officer at Space Inventor, provided an array of insights into the future of the sector:
The term ‘NewSpace’ remains relevant as a marker of the transformative shift toward privatization and innovation in the space industry. It highlights the agility, affordability, and democratization of space access that companies like SpaceX and Rocket Lab have pioneered. For startups and emerging markets, the term continues to inspire and differentiate from traditional government-driven aerospace programs.
However, the distinction between “NewSpace” and “OldSpace” is fading as traditional players adopt innovative approaches, and mature NewSpace companies secure government contracts. While it still carries historical and aspirational value, its relevance may diminish as the industry converges toward a unified vision of innovation. For now, it remains a useful term in contexts focused on disruptive change.
In 2025, NewSpace companies will face significant challenges, including stricter regulations on orbital debris and space traffic, funding constraints due to economic conditions, and intense competition in saturated markets like small satellite launches. Navigating these pressures will require strategic differentiation and compliance with evolving standards.
Opportunities will also expand, particularly in emerging markets and through collaborations with governments on key initiatives such as defense, climate monitoring, and deep space exploration. The increasing militarization of space and the need for advanced capabilities in space-based defense systems present a significant growth area for NewSpace companies.
Governments are seeking partnerships to develop and deploy satellite constellations for secure communications, real-time intelligence, and early-warning systems against potential threats. NewSpace companies can play a critical role in supplying cost-effective and rapidly deployable technologies such as small satellites for surveillance applications.
Companies focused on sustainability—through space debris removal and green technologies will also thrive as eco-consciousness grows. Additionally, the push beyond low Earth orbit into lunar and asteroid missions offers high growth potential for firms investing in advanced technologies. Success in 2025 will depend on adaptability, partnerships, and innovation, particularly for companies that can align their offerings with defense priorities, national security needs, and emerging markets for space-based infrastructure.
This very thorough overview from Jan touches on a number of areas that will impact space suppliers and end-users in the years to come.
In particular, Jan’s point about defense being a key driver of growth and change in the NewSpace industry this year is very important. The last few years have seen conflict and tension growing across the world, with space playing a key role in observation, surveillance, remote communication, navigation, and other areas in support of warfighters.
Geopolitical changes mean that defense budgets are increasing around the world, opening up new avenues and opportunities for NewSpace suppliers. Providing operational forces with the data, intelligence (i.e. whole domain awareness), and resources needed to be effective in the field could become a critical focus for many suppliers this year.
Accessing commercial opportunities in the defense industry can be difficult, with the added scrutiny and service expectations that come with such important needs. However, space suppliers are usually well versed in highly regulated markets and in working with government agencies as the customer or end-user, so the transition should be straightforward for most.
It is also very interesting to see that Jan has picked out sustainability in this response, and highlighted both elements of it – the use of environmentally-friendly technologies to create space systems and the impact of those systems in orbit. Both factors are very important to the future of the industry and 2025 could be the year when they gain much more widespread understanding.
About Space Inventor – Space Inventor is a leading satellite manufacturing company specializing in designing, building, and testing advanced satellite systems and missions. Since 2002, the company’s team of experienced satellite engineers and entrepreneurs has been developing high-performance satellite components, complete satellite missions, and cutting-edge avionics products.
Creating innovation based on supply chain strength
Michael Seidl, Systems Engineer at Texas Instruments, shared his views on the challenges NewSpace companies face in 2025, as well as the opportunities for those able to efficiently source what they need and iterate on the existing portfolio:
As more companies enter the commercial space market, they are challenged to find components that meet requirements for LEO missions while optimizing their system cost. Radiation-tolerant products, or as we call them at TI, Space Enhanced Product (SEP), allow NewSpace companies to innovate using reliable parts from established semiconductor suppliers, ultimately enabling them to get to market faster.
SEP products offer the right radiation level and extended temperature range required for LEO missions, allowing them to perform in the harsh space environment. These products are also tested for comprehensive specifications across various use cases, empowering designers to use familiar parts in future product development without the need for additional screening. NewSpace companies can take advantage of SEP to react quickly to new product orders as well as speed their new product development, while minimizing the actual component cost.
As these components continue to prove operational reliability in orbit over the years, more of our SEP products will obtain flight heritage status, further assuring NewSpace companies of their mission’s longevity.
TI is committed to continue developing new SEP that meet both the technical and commercial needs of the rapidly growing NewSpace market.
Michael has identified a crucial aspect of building a successful, sustainable company in the modern space industry.
At satsearch we’ve helped more than 400 mission teams source parts, software, services, and suppliers for their missions, in more than 10,000 procurement projects, and we see such issues on a daily basis.
Space-qualified parts are a necessity for missions. Not just to ensure performance and minimize risks, but also to qualify systems and meet agency, regulatory, and government requirements.
About Texas Instruments – Texas Instruments (TI) is a global semiconductor manufacturing company with expertise in analog and embedded processing chips. The company was founded in 1930 headquartered in Dallas, Texas.
Thank you for reading – we hope you’ve found these insights and thoughts on the future of NewSpace useful.
Remember that you can find more information about the companies that each of the contributors work at in the links above. Or simply search on the satsearch platform today.
