The space industry is growing rapidly, with its value expected to reach $944 billion by 2033. What was once the realm of imagination is now a fast developing sector, driven by advanced technology that makes exploring and utilizing space increasingly achievable.
In 2025, $12.4 billion was invested in the global space industry – a milestone that laid the groundwork for the sector’s rapid expansion. Investment has continued to accelerate, fueling innovation in satellite communications, Earth observation, climate monitoring, deep space exploration and even space tourism. As access improves, more companies are building specialized software, hardware and components for satellites, rockets and other spacecraft systems.
With high costs, technical complexity and significant operational risk, insurance has become essential for SpaceTech startups – covering everything from launches to liability and helping companies secure funding and partnerships with greater confidence.
Definitions: What do we mean by ‘SpaceTech’?
SpaceTech – short for space technology – refers to the tools, systems and innovations that make activity in space possible. It includes the design, building and operation of satellites, rockets and instruments used for exploration, communication and Earth observation.
These technologies span both physical hardware and sophisticated software, also covering the digital systems that plan, map and manage complex missions.
Together, SpaceTech forms the backbone of a rapidly growing industry that is shaping how we observe our planet – and how we explore beyond it. However, the rapid innovation that underpins the industry also surfaces a wide range of risks.
What are the risks of SpaceTech?
As the industry shifts from government programs to fast moving private ventures, SpaceTech carries significant risk. Even small technical failures can trigger mission loss, financial damage or contract fallout.
Key risks to consider:
- Bodily injury & property damage: Hardware failures can cause severe damage – a danger to property and people.
- Contractual risk: High value, complex contracts mean costly penalties or lost business in the event of a contractual breach.
- Regulatory exposure: Space activities may have to meet international and local rules, and compliance varies widely.
- Cyber risk: Weak controls can expose spacecraft and ground systems to hacking, disruption or data loss.
- Intellectual property (IP) risk: Cutting edge innovation increases exposure to IP theft, disputes or infringement.
- R&D vs. live use: Risk is lower in R&D, with live systems carrying a far greater operational exposure.
SpaceTech is a challenging industry with unique risks. That makes a clear understanding of how each component fits into larger, mission critical systems vital.
The insurance opportunity: Getting started in an expanding market
As the space industry accelerates, small and mid sized SpaceTech companies are poised to develop the next generation of orbital, lunar and deep space technologies.
The insurance sector plays a critical role in reducing the risks associated with these missions – helping to enable innovation, attract investment and drive the expansion of a sustainable, commercially viable space economy.
If you’d like to know more about SpaceTech risk and how insurance works, get in touch.
