Europe’s Ariane 6 rocket takes off, in Kourou, French Guiana, July 9, 2024. European Space Agency
ESA | Via Reuters
A new layer of critical infrastructure isemergingabove our heads.
Low Earth Orbit (LEO) — which NASA defines as the stretch of space at an altitude of 2,000 km or less — is rapidly evolving from a niche technical domain into one of the most strategically important environments of the 21st century.
Itunderpins global navigation, telecommunications,defenseand worldwide connectivity and is seeing a flood of investment.
LEO satellites, with their relative proximity to Earth, deliver quicker responses, reduced launchcostsand faster communication speeds. Unlike satellites in more elevated orbits, they do not stay above a fixed spot on Earth and often work in constellations to maximize global coverage.
Higher trajectories,such as Medium Earth Orbit (MEO) and Geostationary Orbit (GEO),host long‑established satellite infrastructure, but they are subject to more rigid operational constraints.
More than $45 billion worth of investment in the sector was recorded in 2025,up sharply from just under $25 billion in 2024, according to Space IQ, a report tracking startup activity and investment trends in the space economy.
“Orbital access is becoming a strategic asset much like ports, cables, or energy grids on Earth,” Carlos Moreira, CEO of Swiss cybersecurity and semiconductor firm Wisekey, told CNBC.
The most visible example of this shift is Elon Musk‘s rapidly expanding satellite network. His rocket company, SpaceX, alreadyoperatesthe Starlink constellation, which currently has more than 9,500satellites flying.
The company plans to expand this network by adding thousands more satellites. SpaceX hasalsoproposed an even larger project, a solar-powered orbital data-center system,that could eventually involve up to one million satellites.
But SpaceX is not alone.Just this week tech darling Nvidia unveileda new platform aimed at bringing AI computing into orbit. The systemisdesigned to supportorbital datacenters,geospatialintelligenceand autonomous space operations.
“Space computing, the final frontier, has arrived,” said Nvidia CEO Jensen Huang at the company’s GTC conference 2026 in San Jose.Thisapproachcould transformorbital datacentersinto instruments of discovery and spacecraftinto self-navigating systems, he said.
Amazon LEO—formerly known as Project Kuiper—plans to deploy more than 3,000 satellites into Low Earth Orbit. Earlier this year, the Federal Communications Commission (FCC) approved a further 4,500 satellites for future deployment. Meanwhile, Blue Origin, founded by Jeff Bezos, is expected to launch more than 5,000 satellites by late 2027.
In Europe, Eutelsat‘s OneWeb LEO satellite network currently consists of more than 600 satellites.While currently operating on a much smaller scale, France is hoping the company will eventually rival Musk’s Starlink and has committed 1.35 billion euros ($1.58 billion) in investment in Eutelsat, making it the company’s biggest shareholder with aroughly 30%stake.
China has also filed plans for more than 200,000 satellites across 14 constellations.
The scale of these planned deploymentsrepresentsa fundamental shift in how space will be used, governed, and commercialized.
A new investment moment
More than $400 billion has been invested in the space economy since 2009, with the U.S. contributing over half of that investment, followed by China, according to Space Capital.
Space Capital CEO Chad Anderson saidthe industryremainsin the “early innings of a multi-decade infrastructure cycle.”He noted that while the sector is still inearly stagesof evolution, it has matured enough to offer meaningful public market opportunities.
Around a dozen space companies are already publicly listed, with more expected over the coming year, including thehighlyanticipatedSpaceX IPO, which Anderson saidcould mark the space sector’s “Netscape moment” — a pivotal event that reshapes investor expectationsand draws broader capital into the market.
Yet as momentum builds and commercial activity accelerates, Wisekey’s Moreira cautioned that this expansion must be “managed with the same level of seriousness as digital sovereignty on Earth.”
He argued that space should remain a domain that benefits humanity— supporting connectivity, scientificdiscoveryand economic growth—rather than becoming a place of uncontrolled competition and systemic risk.
Regulations risks
A key challenge for market growth is the fragmented governance of Leo and its multi-layered system of operation.
At the international level, the Outer Space Treatyestablishesthat statesare responsible forall space activities carried out under theirjurisdiction, while the UN’s space debris mitigation guidelines provide non‑binding sustainability principles.
The International Telecommunication Union (ITU) manages global spectrumallocation, helpingprevent interference andmaintainreliable operation across communications networks. Alongside these formal mechanisms, industry groups such as the Space Safety Coalition promote voluntary best‑practice standards.
National authorities then provide operational oversight. In the United States, for example, the FCC licenses satellite constellations and spectrum use, and the FAA oversees launch and re‑entry activities.
However, many experts argue that existing frameworks are no longer fit for purpose.
Raza Rizvi, TMT lawyer at Simmons & Simmons, says that much of today’s legal structure was designed around the more predictable conditions of theGEO.”Now that we are entering a higher‑risk, higher‑complexity environment in LEO, we don’t yet have the specific legal tools to manage this new technology.”
SiamakHesar, CEO of spaceflight intelligence companyKayhan Space, says current regulations were built for slower‑moving, state‑driven space programmesthat”Regulations need to evolve to the scale at which the industry is growing.”
He notesthat regulation now needs a “new perspective,” as commercial operators,not governments,are becoming the primary users of space.
This shift from state‑driven to commercially driven activity is also reshaping how industry leaders view the opportunities ahead.Martijn Rogier van Delden, Head of Europe Consumer for Amazon LEO, sees “tremendous opportunity” forLEO satellitesto connect billions of people, describing it as “a game changer to bridge the digital divide.”
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