Space-Based Security Systems Market Report 2025

The space-based security systems market size has grown strongly in recent years. It will grow from $23.69 billion in 2024 to $25.98 billion in 2025 at a compound annual growth rate (CAGR) of 9.6%. The growth during the historic period can be attributed to the expansion of military satellite constellations, increased use of Earth observation technologies, escalating geopolitical tensions, the emergence of directed-energy weapons and RF jammers, and growing demand for secure communications between space assets and ground stations.

The space-based security systems market size is expected to see strong growth in the next few years. It will grow to $37.0 billion in 2029 at a compound annual growth rate (CAGR) of 9.2%. The growth in the forecast period can be attributed to the expansion of defense budgets, the proliferation of low Earth orbit (LEO) mega-constellations, increased regulatory efforts to establish standards, rising emphasis on space traffic management, and growing demand for commercial space security. Major trends expected during this period include AI-powered threat detection, the adoption of quantum-resistant encryption and zero-trust security frameworks, the deployment of secure inter-satellite laser communication, the use of edge computing onboard satellites, and the development of hybrid 5G-satellite network systems.

The increasing cyberattacks on critical infrastructure are expected to propel the growth of the space-based security systems market going forward. Cyberattacks on critical infrastructure refer to malicious digital assaults targeting essential systems like energy, healthcare, space, and transportation to disrupt operations or steal sensitive data. Cyberattacks on critical infrastructure are increasing as many essential systems still rely on outdated legacy technologies that lack modern cybersecurity protections, making them easier targets for attackers. Space-based security systems are useful for addressing cyberattacks on critical infrastructure by providing secure satellite communications, real-time threat detection, and global monitoring capabilities that help protect and isolate critical networks from ground-based cyber threats. For instance, in November 2023, according to the Australian Signals Directorate, an Australia-based government agency, cyberattacks on critical infrastructure in Australia rose by 50 percent, increasing from 95 incidents in the 2021 to 2022 financial year to 143 in 2022 to 2023. Therefore, the increasing cyberattacks on critical infrastructure are driving the growth of the space-based security systems market.

Major companies operating in the space-based security systems market are focusing on developing technologically innovative solutions, such as decentralized physical infrastructure networks, to enhance the resilience and security of space assets against emerging threats. Decentralized physical infrastructure networks refer to distributed systems where space assets and communication nodes operate collaboratively without a central authority, enhancing security and resilience through blockchain-based coordination and data management. For instance, in June 2025, WISeSat, a Switzerland-based cybersecurity company, launched the WISeSat 3 satellite aboard SpaceX’s Falcon 9 Transporter-14 mission in collaboration with Sealsq Corp. This next-generation satellite is equipped with SEALSQ’s Quantum RootKey technology and integrates advanced post-quantum cryptography to secure communications against future quantum threats. WISeSat 3 also enables SEALCOIN token exchanges directly from space in collaboration with Hedera, marking the world’s first Decentralized Physical Infrastructure Network (DePIN) launched from orbit and advancing secure, blockchain-enabled digital identity and finance from space.

In September 2024, Redwire Corporation, a US-based provider of space infrastructure and advanced spacecraft technology, acquired Hera Systems for an undisclosed amount. With this acquisition, Redwire Corporation aims to enhance its national security spacecraft portfolio, particularly strengthening its capabilities in small satellite development for intelligence, surveillance, and reconnaissance (ISR) missions. Hera Systems is a US-based spacecraft developer that specializes in designing and building platforms for national security space missions, particularly for defense and security sectors.

Major players in the space-based security systems market are RTX Corporation, The Boeing Company, Lockheed Martin Corporation, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, L3Harris Technologies Inc., Airbus Defence and Space SAS, Peraton Inc., Parsons Corporation, CACI International Inc, Deimos Space S.L.U., Thales Alenia Space SAS, Kratos Defense & Security Solutions Inc., Analytical Graphics Inc., NorthStar Earth & Space Inc., ExoAnalytic Solutions Inc., etamax space GmbH, GlobVision Inc., SpaceNav LLC.

North America was the largest region in the space-based security systems market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in space-based security systems report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the space-based security systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

Space-based security systems refer to strategically deployed technologies in orbit, such as satellites and sensors, designed to protect a nation's space assets and support defense operations by identifying potential threats originating from or passing through space. These systems play a critical role in maintaining space domain awareness, allowing nations to safeguard their interests beyond Earth while reinforcing overall national security.

The primary component types of space-based security systems include hardware, software, and services. Hardware encompasses the physical components of electronic and computer systems involved in space security. These components are utilized in a variety of applications, including surveillance, communication, navigation, Earth observation, and more. The systems serve a range of end users, including defense organizations, government agencies, commercial enterprises, and others.

The space-based security systems market research report is one of a series of new reports that provides space-based security systems market statistics, including space-based security systems industry global market size, regional shares, competitors with a space-based security systems market share, detailed space-based security systems market segments, market trends and opportunities, and any further data you may need to thrive in the space-based security systems industry. This space-based security systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The space-based security systems market includes revenues earned by entities by providing services, such as real-time surveillance, early missile warning, secure communications, and comprehensive space domain awareness. The market value includes the value of related goods sold by the service provider or included within the service offering. The space-based security systems market also includes sales of products, including secure communication platforms, reconnaissance satellites, cybersecurity modules for space assets, and space surveillance satellites. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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