The space economy is projected to grow to $1.8 trillion by 2035, driven by falling launch costs, hardware innovations, and rising investment, according to McKinsey estimates. SpaceX has transformed launch economics with reusable rockets and built Starlink into a major growth engine, though its high cash burn and upcoming lockup expiration pose risks. Rocket Lab is positioning itself as a neutral alternative to SpaceX, with its Electron rocket, defense contracts including a $266 million U.S. Space Force award, and its space systems business, recently announcing an $8 billion acquisition of Iridium. Both stocks are down roughly 50% from recent highs, presenting a potential entry point for long-term investors.
