Alicia Daurignac, Manager/Analyst, Echiquier Space, La Financière de l’Échiquier.
We are living through a revolution. Communication infrastructure is no longer located on Earth; it is now being built directly in space. The first satellite was launched into Earth orbit in 1957, and we are now entering a new dimension with nearly 15,000 satellites in orbit.* Satellite communication is one of the main growth drivers in the space industry. Valued at over $20 billion, the global satellite communications market is expected to grow at an average annual rate of nearly 20% between now and 2034.** This exponential growth presents a wealth of opportunities for investors.
A frenetic pace
Receiving signals from Earth, amplifying them and relaying them: satellites play a central role in telecommunications. Boosted by a dramatic reduction in launch costs, the satellite industry is experiencing strategic growth. SpaceX is now the market leader with its Starlink constellation. The innovation behind the Falcon 9 launcher and the reuse of its first stage enable SpaceX to achieve an unprecedented rate of satellite launches at an unbeatable cost. In 2025, the American company performed more launches than all other players in the global space industry combined. This pace is set to accelerate further. In early January 2026, Starlink – which already has over 9,000 satellites in orbit – obtained authorisation to launch an additional 7,000.
The race is on. While the United States is leading the way, China is trying to catch up with plans to deploy a constellation of over 200,000 satellites. Meanwhile, Europe is banking on the Iris² constellation by 2030.
The race for spectrum licences
While the pace continues to grow, stimulating the entire ecosystem and opening the door to a new generation of players, regulation is key. To transmit data from space to Earth, satellite operators must hold a spectrum licence. These licences help to limit the risk of interference and manage coexistence between constellations. Holding this strictly regulated licence has become the cornerstone of the sector. The scarcity of licences, whose value continues to rise, has triggered a global race. Currently, the only way to acquire them is to purchase existing licences. Last summer, SpaceX acquired part of American company Echostar’s spectrum licences for $17 billion.
The advent of Direct to Device
As investors in the space sector since 2021, we are interested in a new technology that we believe is one of the most promising developments in the satellite industry, and one that is profoundly reshaping the world of telecommunications, namely Direct-to-Device. This technology enables a standard smartphone to connect directly to a satellite, eliminating the need for intermediate infrastructure. The principle is simple: satellites act as antennas, enabling communication anywhere on Earth – particularly in isolated areas not covered by terrestrial networks. American companies such as SpaceX, Amazon and AST SpaceMobile are already positioning themselves by launching low-orbit satellites, between 500 and 1,200 km above Earth. This proximity to Earth provides a stronger signal, enabling direct connection with smartphones.
Faced with ever-growing demand for connectivity, the satellite industry is set to become a key driver of growth in the space sector. Its upward momentum opens up unlimited opportunities for investors.
*United Nations Office for Outer Space Affairs, 2025
**Barclays, 2025
