Government space budgets reached a collective $135 billion (£110.7 billion) in 2024, a 10% year-on-year increase – driven mainly by defence spending, according to the latest Government Space Programs report from Novaspace.

According to the report, defence spending now accounts for 54% of space budgets, totalling $73 billion last year, outpacing civil spending.

The data shows that a number of countries are ramping up their investments in the space sector. While the US continues to lead global government spending, its share declined to 59% last year, down from over 75% in 2000, reflecting rising investments from China and other nations.

Novaspace said that such numbers are evidence of the growing emphasis on defence-focused space programmes around the world, with major economies now dedicated to achieving strategic autonomy in space alongside maritime, aerial, and cyber arenas.

More nations are establishing dedicated space forces and commands while also enhancing their operational capabilities in space, with the report finding an increase in investments in security, early warning, telecommunications, navigation, and earth observation (EO).

On the civil side, human spaceflight continued to be the largest category of global government space investment in 2024.

While spacefaring nations and organisations have traditionally dominated the budgets for scientific missions and exploration programmes, Novaspace reported that this trend is showing signs of change as more countries recognise the advantages of participating in space exploration activities.

Faced with fiscal pressures such as economic constraints and competing policy priorities, Novaspace estimated that government space budgets will stabilise, growing at a rate of around 1% through the end of the decade.

However, the report notes that governments could stretch their space budgets further by increasing their collaboration with the commercial sector, allowing for costs to be streamlined while still benefiting from advanced capabilities. 

The report also highlights that global governments are increasingly adopting these kinds of methods in a ‘Buy Before Build’ approach, focusing on procuring commercial services from qualified vendors rather than developing custom hardware.

Despite predicting that budgets for space exploration will settle, in a report released last week, Novaspace forecast that the global space economy will grow from $596 billion (£484 billion) in 2024 to $944 billion (£767 billion) by 2033, with growth by advancements in downstream solutions and emerging technologies.

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“The surge in government space budgets reflects the strategic importance of space,” said Charlotte Croison, managing consultant 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.”