Australia in space: 2025 trendlines

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With the 76th International Astronautical Congress (IAC) set to touch down in Sydney on 29 September, all eyes are on Australia’s rapidly evolving space sector. In the first half of 2025 alone, local operators have landed world-first re-entries, raised nine-figure rounds and bolstered Australia’s claim to “end-to-end” capability – from sovereign launch pads to orbital servicing. As the industry gears up to explore the IAC theme of “Sustainable Space: Resilient Earth”, we take a look at what’s been keeping the Australian space sector busy in 2025 to-date, and the trends and challenges we see on the horizon. 

This article is the first instalment in our three-part series examining the commercial, financial and regulatory trends shaping the industry in the lead-up to IAC 2025 and sets the scene for the insights to follow. Whether you’re a seasoned space operator or simply curious, this mid-year pulse check aims to provide both insight and context for the discussions ahead.

2025 so far

With a calendar packed full of ‘firsts’, 2025 was always poised to be a huge year for the Australian space industry, and it has lived up to the hype. Read on for a stocktake of 5 trends we’ve seen shape 2025 so far, and 5 that we see as defining the next 18 months in the sector.

1. Launches (and Returns) take centre stage

• Eris ignites national attention: Gilmour Space Technologies (Gilmour) made history with the Eris test launch in May. Eris achieved 23 seconds of engine burn time and 14 seconds of flight, marking the first integrated attempt to launch an Australian-made orbital-class rocket from Australian soil. Gilmour heralded the test as a success and is applying lessons learned to the next Eris rocket, which is already in production - demonstrating the iterative, venture-style approach that is increasingly characteristic of the local launch segment.
• Commercial re-entry capability proven at Koonibba: Southern Launch’s Koonibba Test Range hosted the historic re-entry of Varda Space Industries’ W-2 and W-3 capsules. The W-2 return was a first for both Australia (the first demonstration of our return capability), and the world (the first return of a commercial payload to a commercial facility). Australia can now market a genuinely circular service: design, manufacture, launch and controlled return – all under one regulatory roof.

2. Good things come in small packages –success in small-sats and rideshare

• Waratah Seed celebrates 1-year anniversary, receives international recognition: Waratah Seed-1, Australia’s first ‘rideshare’ satellite, quietly turned one in August and took home the SmallSat Mission of the Year award at the Small Satellite Conference in Salt Lake City. The mission – funded by the NSW government through their Space Industry Development program – has doubled its planned life on-orbit and validated the commercial rideshare model for domestic payloads.
• A rush of activity at Vandenberg: Skykraft announced successful launch of Skykraft 4 from California’s Vandenburg Space Force Base (Vandenburg) in July. The launch is part of Skykraft’s plans to deploy a space-enabled air traffic management network in 2026 – and furthers Australia’s steady march towards becoming a global leader in space situational awareness, with new technology and exciting collaborations also announced by LeoLabs and HEO earlier this year.
  
  SpaceX’s Transporter-14 mission also carried 4 Australian payloads when it launched from Vandenburg in June - payloads included two CubeSats, Gilmour’s first satellite bus, ElaraSat, and EchoStar Global’s Lyra-3. The success of the rideshare model signals that local firms are happy to “piggy-back” when cost curves require, while still building towards sovereign lift capability.

3. Big deals and fundraising triumphs, but eyes are still on government

• Capital raises point toward unicorn territory: Fleet Space and Gilmour are chasing unicorn status, with IPOs rumoured to be on the horizon. Fleet Space, which has been buoyed by the success of its Exosphere offering, closed its Series D funding round with a valuation of over $800m in December last year. Gilmour announced it is considering an IPO in the next 3 years, and is also entering Series E fundraising round. Myriota, a South-Australian company focussed on remote sensing technologies and Internet of Things solutions, raised $50m in December last year, of which $25m came from the Commonwealth’s National Reconstruction Fund (NRF).
• Deals are collaborative and future-focussed: The following transactions have caught our eye for both their scale and their emphasis on collaboration, innovation and sustainable growth:
  • Fleet Space announced their acquisition of HiSeis (a global provider of active seismic exploration technology), collaborations with three quantum technology companies, and expansion into the Middle East this year.
  • HEO and BlackSky Technologies have inked a seven-figure deal which will allow HEO to access the excess capacity of BlackSky’s Gen-2 satellites for non-Earth imaging (NEI).
  • An Optus-led consortium with plans to launch a new Australian-made low Earth orbit (LEO) satellite by 2028 was unveiled in July. Two payloads have been announced so far: HEO’s Adler Imager (a NEI-specialised space telescope) and a high-speed communication terminal developed by the University of South Australia with support from SmartSat CRC.
  • Australian telecommunications providers have also been racing to secure high speed direct-to-mobile networks enabled by LEO satellite constellations. Last month, NBN Co announced it will be transitioning from its existing geostationary Sky Muster satellites to Amazon’s Project Kuiper when it launches in Australia.
• Government support evolving: Headline budget cuts last year may have dampened the mood, but the NRF’s $15 billion mandate to invest in ‘enabling technologies’ and the Moon-to-Mars Supply Chain Capability Improvement Grants underline Canberra’s longer game. The Australian Space Agency has issued approximately $26 million in Moon-to-Mars funding to date, with 5 more recipients announced in February.

State and territory governments have also been active, funding at least 6 satellites in 2024 (including Warratah Seed). Initiatives like the Canberra Cyber Hub (which recently expanded into the space industry) are building on this momentum.

4. Industrial capability continues to grow

• New satellite manufacturing facilities announced in NSW: A collaboration between Space Machines Company and the University of Technology Sydney (UTS), the facility will focus on manufacturing the Optimus Viper satellite, a compact orbital servicing satellite, with hopes of producing up to 20 a year. The project is the latest evidence that Australia is now competing across the full spectrum of space activities – from component fabrication to sovereign launch and orbital servicing.

5. International collaboration deepens

• Collaboration with the United States remains strong: Collaboration with the United States remains strong, with Australia’s “Roo-ver” mission confirmed for NASA’s Artemis program late last month through the Commercial Luna Payload Services program. The ELO₂ consortium behind the project (made of up of around 20 Australian organisations) highlights the depth and diversity of the local supply chain.
• Renewed activity in the Indo-Pacific: Regionally, Australia has launched Space MAITRI with India, and private sector collaborations in the region are multiplying. The clear message: space remains a team sport, and international partnerships are pivotal to scale, de-risking and market access.

Looking ahead

1. Funding landscape – still patchy after Series B 

While early-stage grants and venture capital have fuelled much of the sector’s recent growth, there are signs that investor appetite is moderating, particularly for later-stage rounds. As a result, companies with capital-intensive ambitions—such as large satellite constellations—are increasingly looking to debt and government-backed instruments to bridge the gap.  Navigating this evolving funding landscape will require creativity and a clear value proposition.

2. Data sovereignty and dual-use compliance 

As satellites become more integral to national security and critical infrastructure, operators are facing heightened scrutiny around data sovereignty, export controls, and cyber resilience. This complex and rapidly evolving regulatory environment demands rigorous compliance mechanisms and a careful, well-informed approach to the relevant approval processes.

3. Sustainability and space traffic management 

The sustainability agenda is no longer optional. Investors, insurers, and regulators are demanding robust end-of-life and collision-avoidance plans, reflecting growing concerns about space debris and orbital congestion.  This aligns with the IAC’s focus on sustainable space, and will be a key differentiator for companies seeking to attract capital and customers.

4. Geopolitics, geoeconomics and supply chains 

The global landscape is shifting, with AUKUS, supply-chain decoupling, and rising Indo-Pacific tensions prompting a rethink of procurement strategies and licensing pathways. For Australian companies, this means both new risks and new opportunities as governments and industry look to “friend-shore” critical capabilities. Australian operators with robust compliance frameworks will be well-positioned to capture new demand.

5. Insurance

The insurance market is responding to recent high-profile satellite losses by lifting premiums and tightening terms. This is driving renewed interest in innovative risk transfer solutions, such as parametric and pooled insurance products.  For operators, understanding these dynamics—and building strong relationships with insurers—will be crucial to managing risk and unlocking growth. There will be more on this in our next alert in this series.

If you would like to discuss any of the topics above – or explore how they may affect your current project – please reach out to our space sector experts.