Defense Spending Drives Government Space Budgets to Historic High
Paris, France,. January 15, 2025 – Space consulting and market intelligence firm Novaspace, has released the 24th edition of its annual Government Space Programs (GSP) report. The report reveals that global government space investments reached approximately US$ 135 billion in 2024, a 10% increase compared to 2023. Defense spending, now the majority of budgets at US$ 73 billion (54%), underscores space’s growing importance as a contested and strategic domain.
The report highlights the increasing number of countries ramping up investments in the space sector. While the U.S. continues to lead global government spending, its share has declined from over 75% in 2000 to 59% in 2024, reflecting rising investments from China and other nations.
Defense Programs Dominate Investments
The widening gap underscores the growing emphasis on defense-focused space programs, as space emerges as a pivotal domain for achieving strategic autonomy alongside maritime, aerial, and cyber arenas. With the rising importance of space assets, more nations are establishing dedicated space forces and commands while simultaneously enhancing their operational capabilities to address evolving challenges. In this context, governments are bolstering defense capabilities, with investments in Security, Early Warning, Telecommunications, Navigation, and Earth Observation (EO).
Civil Investments: Human Spaceflight Leads the Way
On the civil side, Human Spaceflight remains the largest category of global government space investment in 2024. Traditionally, leading spacefaring nations and organizations have dominated the budgets for crewed and uncrewed scientific missions and exploration programs. However, this trend is evolving as more countries recognize the strategic and economic advantages of participating in space exploration activities.
“The surge in government space budgets reflects the strategic importance of space,” said Charlotte Croison, Manager at Novaspace. “Governments worldwide are not only expanding their capabilities to secure their assets in orbit but are leveraging space to enhance their geopolitical standing and foster economic growth,” he added.
Outlook for Government Space Budgets
The Government Space Programs report anticipates a deceleration in the growth of public space expenditures in the coming years. Faced with fiscal pressures such as economic constraints and competing policy priorities, Novaspace projects that government space budgets will stabilize, growing at a modest rate of approximately 1% annually through the end of the decade. Stabilizing budgets could, however, benefit from enhanced collaboration with the commercial sector. Governments are increasingly adopting a “Buy Before Build” approach, focusing on procuring commercial services from qualified vendors rather than developing custom hardware. This strategy optimizes costs while harnessing advanced capabilities.
Global Government Space Program Expenditures in 2024 (in US$ Millions): US$ 135 Billion Total Investment*
Global government space investments rocketed to US$ 135 billion in 2024, marking a 10% increase from 2023, with defense expenditures driving growth and continuing to outpace civil spending.
*Only countries with a budget of at least $10 million are included on the map. European country budgets reflect contributions to ESA, ESO, and Eumetsat.
About the Report
The 24th edition of the Government Space Programs report, authored by Charlotte Croison, Manager at Novaspace, provides a comprehensive assessment of government space expenditures and programs across more than 90 countries and international organizations. It includes detailed analysis of both defense and civil domains, forecasts through 2033 and tools to benchmark programs using metrics like Purchasing Power Parity (PPP), per capita spending, and budget comparisons as a percentage of GDP. Access a free extract here: Download Free Extract.
