By Akash Sriram

(Reuters) – Space industry funding will get a boost this year due to rising tensions between the United States and China, after startups in the space booked $8.6 billion in investment by 2024, according to a report by the investment firm Seraphim Space.

China has stepped up its efforts to go head-to-head with Western countries in sectors such as satellite production and rocket launches to complement the growing need for space imagery, intelligence and data.

“This is very likely to continue to drive investment into the capital-intensive sectors of the space industry in the coming year,” said Lucas Bishop, investment associate at Seraphim Space.

Notable deals in the fourth quarter of 2024 included Apple’s acquisition of a 20% stake in satellite operator Globalstar for $1.5 billion and a secondary sale of SpaceX shares for $1,250 billion, which boosted the company’s valuation to $350 billion from $210 billion earlier this year.

Firefly Aerospace’s $175 million late-stage financing round in November was the largest deal of the fourth quarter, valuing the Texas-based rocket maker at more than $2 billion.

The space sector is likely to get a boost from SpaceX CEO Elon Musk’s influence over the incoming Donald Trump administration, as well as billionaire entrepreneur and private astronaut Jared Isaacman being tapped to lead NASA.

If confirmed, the founder and CEO of Shift4 Payments would oversee the space administration’s $25 billion budget and future missions.

“A reallocation of funds towards more cost-effective, private sector solutions could further increase investment in companies offering other space technologies across the board,” Bishop added.

The rivalry between China and the United States is likely to intensify after Trump takes office next week, bolstered by expanded funding for the Defense Department’s Commercial Space Program, Seraphim Space said.

(Reporting by Akash Sriram in Bangalore; Editing by Krishna Chandra Eluri)