The Second Space Age

Goldman Sachs

George Lee, Dan Keyserling

Research

22 Pages

Goldman Sachs Global Institute examines how falling launch costs, private capital, and strategic rivalry are turning space into industrial infrastructure. Launch costs have fallen from $65,400 per kilogram in 1981 to $1,500 today, while the space economy is projected to reach $1.8 trillion by 2035.

Key Takeaways

Launch costs collapse: Reusable rockets cut LEO launch costs from $65,400 per kilogram in 1981 to $1,500 today, roughly a 98% decline.
Capital floods space: More than $55 billion entered the space ecosystem in 2025, while Q1 2026 alone posted a record $36 billion.
Defense demand accelerates: U.S. Defense Department space spending rises from $11.9 billion in 2020 to $59.7 billion in 2027, a 26% CAGR.
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