What is space infrastructure and why is it important?

Space infrastructure refers to the essential systems and services that enable activity in orbit and beyond. This includes satellites, orbital manufacturing facilities, communication networks, and servicing capabilities. Just like roads, power plants, and internet cables enable our economy on Earth, these space-based systems provide the foundation for commercial activities beyond our planet. As both government and private investment in space increases, companies building this infrastructure stand to benefit from growing demand.

What are "picks and shovels" investments in the space sector?

"Picks and shovels" refers to the essential tools and infrastructure that support an industry, rather than the end product itself. This phrase comes from the California Gold Rush, where the people selling mining equipment often made more reliable profits than the miners themselves. In the space sector, while rockets get a lot of attention, the companies providing satellite components, communication systems, manufacturing capabilities, and servicing technologies represent these fundamental "picks and shovels" that make the entire space economy possible.

Why focus on established companies rather than space startups?

This collection prioritizes companies with proven technologies and existing contracts over purely speculative ventures. Space is inherently challenging and many startups face significant hurdles before generating revenue. The established companies in this collection have demonstrated their capabilities, secured important contracts (often with government agencies), and built the expertise needed to deliver critical space infrastructure components and services, potentially offering a more balanced risk-reward profile.

What is in-orbit servicing and why is it valuable?

In-orbit servicing refers to the ability to inspect, repair, refuel, or upgrade satellites and other space assets while they're in orbit. This is valuable because it extends the operational life of expensive space assets, allows for upgrades without launching entirely new satellites, and helps manage space debris. Companies that provide these services are creating a new market that didn't previously exist, as traditionally satellites were simply abandoned when they ran out of fuel or had technical problems.

How do falling launch costs benefit space infrastructure companies?

As rocket launches become more affordable (dropping from tens of thousands of dollars per kilogram to orbit to just a few thousand), more organizations can afford to deploy satellites and other space assets. This increases demand for the satellites, components, servicing capabilities, and communication systems that space infrastructure companies provide. These companies benefit from the growing market without being directly exposed to the competitive pressures and capital requirements of the launch business itself.

15 handpicked stocks

Off-Planet Builders

Looking beyond rockets to the companies building space's essential infrastructure. These carefully selected stocks represent the firms creating the backbone of our off-world future—from satellite manufacturing and servicing to the communication networks making space business possible.

Han Tan | Market Analyst

Updated 2 days ago | Published at जून 17