By ProcureAM Research

Space Economy Market Outlook:

The global space economy showed fantastic growth in 2025 and is looking to continue the momentum in 2026. As of December 6th, 2025 there was a history making record of 291 launches or almost one launch per day.¹ The industry hit a record $613 billion in 2024, up 7.8% from a year earlier.² Both governmental and commercial applications were responsible for this growth.

Going forward, the space sector is forecasted to be valued at $1.8 trillion by 2035, according to Aranca.³

The expansion of the space economy is being driven by a combination of technological, commercial, and geopolitical factors. Key drivers include:

Falling Launch Costs:

• The cost to reach orbit has dropped dramatically due to reusable rockets and private innovation. Companies such as SpaceX*, Rocket Lab*, and Firefly Aerospace* have made space access more affordable.

Global Demand for Connectivity:

• Broadband internet from space is helping to connect the world and provide underserved and remote areas with access. Firms like Iridium Communications*, Viasat*, EchoStar*, Eutelsat*, SES*, and AST SpaceMobile* benefited this year from the push for increased broadband and communications connectivity. 

Earth Observation Data and Imagery:

• Earth-observation satellites are generating valuable data and imagery. The information is being used for agriculture and forestry, climate monitoring, insurance and risk analytics, disaster response, and national security. Artificial intelligence and cloud computing amplify the value of this data. Planet Labs*, BlackSky*, and Thales* were active in this category.

Government Defense Investment & Geopolitical Competition:

• Governments are increasingly investing in space to strengthen their national security and defense capabilities with space situational awareness, communications, and intelligence. The United States is furthering its lunar exploration efforts while also focusing on President Trump’s quest to build the Golden Dome. The space race is showing no signs of slowing down with the United States, China, Russia, Europe, India, Japan and other nations expanding their space budgets during the past year.2  Airbus*, Leonardo*, L3Harris Technology*, Lockheed Martin*, and RTX* have been busy during the year in this area.

Space Tourism:

• Space tourism continues to attract interest. Virgin Galactic* and Blue Origin* have been most notable while other startups have been planning space hotels and ballon voyages.

Data Centers in Space and on the Moon:

• Outer space is now being viewed as an ideal location for data centers. Artificial Intelligence (AI) applications have exploded along with the need for data centers to accommodate AI usage. The benefits of data centers in outer space include: a reduced need for energy intensive cooling systems required for quantum computing, unconstrained real estate available both on the moon and in outer space, and increased energy efficiency due to solar energy access. Nvidia*, Starcloud*, Blue Origin* and SpaceX* have been making progress towards this end.

Satellite Miniaturization & Mass Production:

• Advancements in small satellites (CubeSats, microsats) enable cheaper, faster deployments. Standardized components and assembly-line manufacturing reduce time and cost, which is powering massive growth in Earth-observation and communication constellations.

The Procure Space ETF®

The world’s first space ETF, the Procure Space ETF® (NASDAQ: UFO), increased more than 45% for the year ending November 30th, 2025.⁴ UFO includes 40+ global corporations participating in all aspects of the space economy.

Top contributors in the fund included:

Rocket Lab	Globalstar*
AST SpaceMobile*	Viasat*
EchoStar*	Planet Labs*

New additions to UFO included space-sector IPOs and international stocks:

Firefly Aerospace*	Ovzon*
Voyager Technologies*	Intellian Technologies*
	Lumir*

2025 brought a lot of attention and much growth to the space economy. 2026 may be even more exciting with talks of a SpaceX* initial public offering and the start of Jared Isaacman as the head of NASA. Investors looking for exposure to the rapidly evolving space industry may want to consider the Procure Space ETF®.

For more information about the Procure Space ETF®, visit https://www.procureetfs.com.

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Funds may be lower or higher than the performance quoted. All performance is historical and includes reinvestment of dividends and capital gains. Performance data current to the most recent month end may be obtained by calling 866-690-ETFS (3837).

¹“Orbital launches in 2025”, www.spacestatsonline.com, December 6, 2025.

²“The Space Report Q2 2025”, The Space Foundation, www.spacefoundation.com, July 2025.

³“The Growth of the Space Economy”, www.aranca.com, July 2025.

⁴Procure ETFs, www.ProcureETFs.com/ufo, November 2025.

Important Information:

*As of December 16th, 2025, Airbus Group (AIR FP) was a 2.20% holding, AST SpaceMobile (ASTS) was a 7.66% holding, BlackSky Technology (BKSY) was a 0.94% holding, EchoStar (SATS) was a 5.85% holding, Eutelsat Communications (ETL FP) was a 1.02% holding, Firefly Space (FLY) was a 2.05% holding, Globalstar (GSAT) was a 6,47% holding, Intellian Technologies (189300 KS) was a 0.48% holding, Iridium Communications (IRDM) was a 3.06% holding, L3Harris Technologies (LHX) was a 2.23% holding, Leonardo (LDO IM) was a 0.27% holding, Lockheed Martin (LMT) was a 0.27% holding, Lumir (474170 KS) was a 0.09%% holding, Ovzon (OVZON SS) was 0.44% holding, Planet Labs (PL) was a 7.62% holding, Rocket Lab (RKLB) was a 4.96% holding, RTX Corporation (RTX) was a 2.51% holding, SES (SESG FP) was a 3.89% holding, Thales (HO FP) was a 0.40% holding, Viasat (VSAT) was a 4.81% holding, Virgin Galatic (SPCE) was a (0.32%) holding, Voyager Technologies (VOYG) was a 2.35% holding in the Procure Space ETF® (NASDAQ: UFO). AT&T, Blue Origin, Nvidia, SpaceX, and Starcloud were 0.00% holdings in the Procure Space ETF® (NASDAQ: UFO).

For a complete list of holdings in UFO, visit: https://procureetfs.com/ufo/. Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security.

Please consider the Fund’s investment objectives, risks, and charges and expenses carefully before you invest. This and other important information is contained in the Fund’s summary prospectus and prospectus, which can be obtained by visiting procureetfs.com. Read carefully before you invest.

Investing involves risk. Principal loss is possible. The Fund is also subject to the following risks: Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns.  

Aerospace and defense companies can be significantly affected by government aerospace and defense regulation and spending policies. The exploration of space by private industry and the harvesting of space assets is a business based in future and is witnessing new entrants into the market. Investments in the Fund will be riskier than traditional investments in established industry sectors. The Fund is considered to be concentrated in securities of companies that operate or utilize satellites which are subject to manufacturing delays, launch delays or failures, and operational and environmental risks that could limit their ability to utilize the satellites needed to deliver services to customers. Investing in foreign securities are volatile, harder to price, and less liquid than U.S. securities. Securities of small- and mid-capitalization companies may experience much more price volatility, greater spreads between their bid and ask prices and significantly lower trading volumes than securities issued by large, more established companies. The Fund is not actively managed so it would not take defensive positions in declining markets unless such positions are reflected in the underlying index. Please refer to the summary prospectus for a more detailed explanation of the Funds’ principal risks. It is not possible to invest in an index. 

UFO is distributed by Quasar Distributors LLC.