The Emerging Space Layer: Investment Surges in Low Earth Orbit

A new layer of critical infrastructure is rapidly developing above our heads. Low Earth Orbit (LEO) – defined by NASA as the region of space up to 2,000 km in altitude – is transitioning from a specialized technical field into a strategically vital environment for the 21st century. It underpins global navigation, telecommunications, defense, and worldwide connectivity, attracting a surge of investment.

The Strategic Value of LEO

LEO satellites, due to their proximity to Earth, offer quicker response times, reduced launch costs, and faster communication speeds. Unlike satellites in higher orbits, they don’t remain fixed over a single point on Earth and often operate in constellations to maximize global coverage. Medium Earth Orbit (MEO) and Geostationary Orbit (GEO) host established satellite infrastructure, but are subject to more operational limitations.

Investment Boom in the Space Economy

Investment in the LEO sector reached over $45 billion in 2025, a significant increase from just under $25 billion in 2024, according to Space IQ, a firm tracking activity and investment in the space economy. “Orbital access is becoming a strategic asset much like ports, cables, or energy grids on Earth,” says Carlos Moreira, CEO of Swiss cybersecurity and semiconductor firm Wisekey.

Key Players in the LEO Race

Several major companies are driving the expansion of LEO infrastructure:

• SpaceX: Already operates the Starlink constellation with over 9,500 satellites and plans further expansion, including a proposed orbital data-center system potentially involving up to one million satellites.
• Nvidia: Recently unveiled a platform to bring AI computing into orbit, designed for orbital data centers, geospatial intelligence, and autonomous space operations.
• Amazon: Through Project Kuiper, plans to deploy over 3,000 satellites, with approval from the FCC for an additional 4,500 for future deployment.
• Blue Origin: Founded by Jeff Bezos, is expected to launch over 5,000 satellites by late 2027.
• Eutelsat’s OneWeb: Currently consists of over 600 satellites, with France investing 1.35 billion euros ($1.58 billion) to become the company’s largest shareholder with a roughly 30% stake.
• China: Has filed plans for over 200,000 satellites across 14 constellations.

Investment Trends and Market Maturity

Since 2009, over $400 billion has been invested in the space economy, with the U.S. Contributing over half of that investment, followed by China, according to Space Capital. Chad Anderson, CEO of Space Capital, believes the industry is in the “early innings of a multi-decade infrastructure cycle” and has matured enough to offer public market opportunities. Around a dozen space companies are publicly listed, with more anticipated, including a potentially pivotal SpaceX IPO.

Regulatory Challenges and the Demand for Evolution

The growth of LEO presents regulatory challenges. The Outer Space Treaty establishes state responsibility for space activities, whereas UN guidelines offer non-binding sustainability principles. The International Telecommunication Union (ITU) manages spectrum allocation. However, many experts argue existing frameworks are inadequate for the complexities of LEO.

Raza Rizvi, a TMT lawyer at Simmons & Simmons, notes that much of the current legal structure was designed for GEO. Siamak Hesar, CEO of Kayhan Space, emphasizes the need for regulations to evolve with the industry’s rapid growth, shifting from a state-driven to a commercially-driven model.

The Future of LEO: Connectivity and Opportunity

Martijn Rogier van Delden, Head of Europe Consumer for Amazon LEO, highlights the “tremendous opportunity” for LEO satellites to connect billions of people, describing it as a “game changer to bridge the digital divide.”