In recent years, investors have grown accustomed to big tech companies valuing their companies in the trillions, driven by the AI boom. SpaceX’s purported valuation is a clear indication that the space business is approaching similar levels.
Interestingly, space-related activities were mainly the domain of governments and remain so today. Professor Tan Chorh Chuan, Permanent Secretary for National Research and Development at the Prime Minister’s Office, says the government continues to invest in space research, namely in two broad areas: imaging and in the VLEO (very low Earth orbit) space, where new materials and sensors are required.
“This is the kind of thematic area which is more related to materials for harsh environments,” says Tan in response to a question posed by The Edge Singapore at the RIE2030 launch on Dec 5. RIE stands for Research, Innovation and Enterprise. “And as you develop materials that can be used in outer space or low orbits, they can also be applicable, in some cases, to commercial air flights,” Tan adds.
In recent years, space has become an economic sector attracting private capital. Besides Musk, the industry has also attracted high-profile investors, including Jeff Bezos and Richard Branson, who have invested through Blue Origin and Virgin Galactic, respectively. More recently, OpenAI’s Sam Altman was reported to have explored a deal to build a rocket company and develop data centres in space.
See also: Musk denies reports of SpaceX seeking US$800 bil valuation
Space tipped to be trillion-dollar sector
Several research houses have flagged this industry as the next investment frontier. Multiple countries, including China, as well as a growing number of private firms, are scaling satellite manufacturing and connectivity services, thereby expanding the space economy ecosystem.
See also: SpaceX to offer insider shares at record-setting valuation
According to a McKinsey & Company report dated April 8, 2024, the space economy is expected to reach US$1.8 trillion by 2035. Growth drivers include the need for greater connectivity via communications satellites, higher demand for positioning and navigation services on mobile phones, as well as higher demand for AI-powered insights and machine learning.
A June 2024 report by DBS’s chief investment office says the space economy will be driven by emerging technologies such as autonomous vehicles (AVs), AI, robots and reusable rockets. As such, the bank expects the space industry to grow to US$772 billion by 2027, up from US$546 billion in 2022.
Meanwhile, a March report by Goldman Sachs estimates the satellite market to grow to US$108 billion by 2035 in a base-case scenario, up from US$15 billion at that time. In a bull-case estimate, the market could grow up to US$457 billion in the same period. As many as 70,000 low Earth orbit (LEO) satellites are expected to be launched over the next five years, with Chinese satellites making up 53,000 of them, says Allen Chang, the bank’s head of its Greater China Technology research team.
Further underscoring momentum in the sector, a 2Q2025 report by the Space Foundation, released in July, found that the global space economy reached a record US$613 billion last year, with the commercial sector accounting for 78% of that growth.
“A SpaceX IPO in 2026 would be a seismic event for the space economy,” says Mark Boggett, CEO of Seraphim Space, a venture capital (VC) company that invests in SpaceTech startups.
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He adds that SpaceX’s reported US$1.5 trillion valuation would give the company the “firepower to accelerate its operations in infrastructure, connectivity and AI-powered services”.
The listing will also create “unprecedented opportunities” across the broader space economy. These include in-orbit servicing, satellite constellations, data analytics, and global security and sustainability solutions.
“With the space economy projected to grow from US$600 billion today to US$1.8 trillion by 2035, a SpaceX IPO could fast-track that trajectory,” Boggett notes.
Yet not every player has been able to ride this wave. On Nov 12, Singapore Technologies Engineering (ST Engineering) announced that it planned to write off $667 million in iDirect, its long-struggling satellite communications (satcoms) business, after efforts to turn the company around yielded limited gains. As at Sept 30, iDirect’s value-in-use (VIU) was determined to be $170 million, sharply lower than its carrying amount of $837 million.
ST Engineering cited several reasons for the impairment, including a fast-evolving and weakening operating environment in which geostationary Earth orbit (GEO) satellite operators have launched far fewer satellites. Others include the longer-than-expected customer adoption of iDirect’s next-generation platform, Intuition, continued decline in revenue and ebitda, as well as a deteriorating near-term business outlook.
Global Invacom sees LEO potential
Fellow Singapore-listed satcom player, Global Invacom Group, has also been affected by structural shifts in the industry, including declining demand in direct-to-home (DTH) and consolidation among major players.
In 1HFY2025 ended June 30, the UK-based company reported a smaller loss of US$4.5 million, down from US$7.5 million a year ago. Revenue fell by 28.2% y-o-y to US$11.3 million, mainly due to lower demand for DTH products and fewer projects completed during the period. At the same time, gross profit declined by 19.3% y-o-y to US$4.7 million. However, gross profit margin increased to 41.1% from 36.5% due to a change in the company’s product mix.
Global Invacom's CEO Gordon Blaikie. Photo: Global Invacom
Gordon Blaikie, who was officially appointed as Global Invacom’s CEO on May 26, tells The Edge Singapore that the company has been developing “new and innovative technologies” to strengthen its portfolio. Recent launches include the XRJ transceiver and the XY antenna. Blaikie had been the company’s interim CEO since Dec 9, 2022.
The XRJ transceiver, optimised for the government and defence markets, covers the full extended Ka-band frequency range in both receive and transmit modes and delivers “extremely high power at 25 watts of linear power and 50 watts saturated power”, says Blaikie. He says this allows for “consistent communications for any application on land, sea or air” across LEO, MEO and GEO.
Meanwhile, the XY antenna is designed for rapid-response scenarios. It offers “the highest degree of modularity, flexibility and simple assembly for on-the-move and on-the-pause connectivity, as well as multi-orbit capability across GEO, MEO and LEO”.
Blaikie says the system is unique in the market, “with no requirement for the transportation of multiple discrete feed elements and radio frequency (RF) units” as everything is integrated into a transceiver attached to the back of the antenna reflector.
The way Blaikie sees it, Global Invacom’s differentiator lies in its ability to provide complete end-to-end ground systems. “As our products are fully integrated systems, they are easy to deploy, removing the complexity often associated with ground segment equipment, which often requires transportation of discrete parts and on-site assembly,” says Blaikie.
Global Invacom’s operations are divided into two main segments: very small aperture terminals (VSATs) and non-VSAT. VSATs are compact terminals for comms-on-the-move, deployed on land vehicles or ships, and are used by defence forces for reliable connectivity in remote areas. Non-VSAT offerings include fixed-gateway antennas for ground-station communications, earth observation and satellite-TV contribution, as well as consumer equipment for satellite-TV reception.
Despite the challenges, Blaikie notes that Global Invacom is proactively addressing the broader market and is seeing signs of recovery in the satcoms market. The recovery is driven largely by growing demand for connectivity, the launch of LEO constellations and industry transformation.
“The current geopolitical situation is making the satcoms industry more important than ever, keeping communications open and the world connected regardless of location or local infrastructure,” he notes. “As the momentum in the sector continues to strengthen, we believe we are well-positioned to respond to market needs.”
However, Blaikie admits that Global Invacom remains “challenging” in Asia due to customers deferring procurement decisions amid difficult market dynamics.
In the face of the continuing decline of the DTH market, Blaikie notes that the company already has a “strong customer base” in other sectors and has grown its product portfolio for the defence sector in particular, which has unique requirements for quick deployment, easy installation and always-on connectivity.
Blaikie is upbeat that the global satellite market is growing and can be met by LEO constellations. “LEO, in particular, has very different requirements for the ground segment than GEO because antennae need to track the satellites as they pass over it,” he says. “At the same time, there is a growing need for ground segment technology that can handle multiple orbits, something that our solutions are capable of meeting. Good quality products that are designed for unique use cases will be more important than ever in this evolving environment.”
Addvalue to gain from recurring income
While ST Engineering and Global Invacom face structural headwinds, Addvalue Technologies, yet another Singapore-listed firm, appears to be benefitting from the industry’s shift towards LEO and data-driven satellite services.
Founded in 1994, the company has evolved through three phases: from a solutions provider for consumer wireless products to mobile satcom terminals between 2004 and 2013, before pivoting to space technologies and software-defined applications for defence and enterprise customers in 2014.
Addvalue Tech's CEO Tan Khai Pang. Photo: Albert Chua/The Edge Singapore
Today, Addvalue Tech serves leading organisations in the commercial, defence and space industries. Its known clients include Capella Space, iQPS, VAST Space and Inmarsat (now part of Viasat).
In 1HFY2026 ended Sept 30, Addvalue Tech reported revenue of US$8.8 million, up 54% from US$5.7 million in 1HFY2025. Earnings surged to US$2 million from US$52,000 previously. Gross profit rose by 64% y-o-y to US$4.5 million from US$2.8 million, while gross profit margin rose to 52% from 48% in the corresponding period the year before.
The company’s revenue comes from four main segments: space connectivity (SPC), advanced digital radio (ADR), satcom connectivity (STC) and strategic design (SDS). Its ADR-related business accounts for 57% of its half-year revenue, while SPC accounts for 37% of its total revenue. Addvalue Tech also said it expects its future growth to be “strongly driven” by these twin engines.
This year, Addvalue Tech has won a long string of contracts, including, most recently, a US$4.8 million win announced on Dec 8. This brings its total order book to US$22.6 million, sending its share price up 400% since the start of the year to close at 5 cents on Dec 9, valuing the company at $159 million. The new orders are expected to be “substantially fulfilled” within the next 12 months and contribute to the company’s results for the next financial year.
Among its businesses, Addvalue Tech’s ADR-related business continues to perform well, supplying a diverse range of software-defined radio modules tailored for its customers, as well as its ADRS1000 module for generic smart radio applications.
However, its SPC business is where the company has carved out a meaningful niche. The segment supports a new class of satellites in LEO, which operate at altitudes of 160km to 2,000km above Earth’s surface. These satellites are lighter and less costly to build than traditional GEO satellites, which orbit at nearly 36,000km.
A key product here is its proprietary inter-satellite data relay system (IDRS), the world’s first on-demand, real-time connection service for LEO satellites. According to Addvalue Tech, its IDRS terminal fits LEO satellites of all sizes, including the “New Space” nano-satellites.
The IDRS model is the segment that will generate recurring income for the company. When customers purchase the service, they will get a terminal. And when the company helps integrate the terminal with its customers’ satellites, it provides engineering and support services, among others. Customers will also sign a data plan with the company as the latter will help translate the data derived from the satellite upon its launch, explains Addvalue Tech CEO Tan Khai Pang.
These data plans can last as long as the satellite remains in orbit, which can be two to five years. That said, Tan adds that most of Addvalue Tech’s customers sign up for one- to two-year plans and are billed monthly.
“The more satellites up there, the more revenue we get. We’re talking about close to a million [dollars] last year,” says Tan in an interview with The Edge Singapore.
He adds that each IDRS terminal will have a life cycle of about three to five years, depending on the environment in which these satellites operate. However, it is still cheaper for companies to decommission satellites in LEO and relaunch them than to launch them into GEO. “There is more space in LEO for these companies to play in.” In addition, when companies are building their satellite constellations, they usually launch five to 10 satellites at a minimum. “You need to have a certain critical mass of satellite numbers to provide services to customers,” he explains.
“Usually with customers like Capella Space, they are talking about 30 or even, some of them, 50 or 100s of these constellations,” he continues, clarifying that these orders do not come at once.
When shown the Goldman Sachs report that the satellite market is expected to grow to US$108 billion by 2035, Tan noted the company is, precisely, building a business based on these estimates. Noting the various forecasts, Tan points out that there were 1,400 LEO satellites in 2014. The number grew to 6,000 to 8,000 satellites between 2024 and 2025, and reports now estimate that there may be 27,000 to 100,000 satellites by 2030.
Tan says he prefers to focus on the lower end of the range, over 20,000 LEO satellites, adding that the real figure of “serviceable” satellites, excluding mega constellations, is probably between 3,000 and 5,000. The higher figure includes Addvalue Tech’s current and potential customers. “Launching a satellite is easier and it doesn’t take a lot of tech to shoot to 36,000km,” he says. “It is cheaper to build a satellite for the LEO environment.”
For “serviceable, optimal” markets, Tan estimates that of Addvalue Tech’s over 20 secured customers, each of them should have 25 satellites on average, putting the total at 500, a number Tan is very pleased with. “Imagine I have 500 of these satellites in space. I’ll be thrilled. One satellite will fetch about US$50,000 in revenue. To a company like us, I think it’s quite okay.”
As of now, Addvalue’s IDRS plan is a growing revenue contributor, with Tan expecting the number of satellites in space to “grow quite significantly”. He says Addvalue Tech currently has 23 satellites in orbit and aims to reach 300 in five years.
“To be honest, our operations in Singapore are sparse. Because we are doing a bit of expansion, I think we can handle about 100 terminals a year. But with double time, we can increase production to 1.5 times the numbers,” says Tan.
“I think if need be, we can expand our facility over and move some people to a new office space,” he adds “For us to build a facility, to build 200 to 300 productions, it wouldn’t be too difficult; we can handle it. But we don’t do big expansions; we have to do it carefully.”
Yet, Tan is practical, noting that there are obstacles such as finding a suitable testing facility. Alternatively, the company may build its own testing facility only when it crosses 100 units in production. Should this happen, Tan hopes there will be a suitable facility in Singapore for quality control purposes. The US is also a viable alternative as about 50% of Addvalue Tech’s customers are located there. “Let’s say if there’s 100 units a year, it might make sense for us to have a collaboration or a small setup there.”
With the company’s earnings on an upward trajectory, the conversation turned to the Singapore Exchange’s (SGX) watch list.
In December 2023, Addvalue Tech was placed on the watch-list due to three consecutive years of losses and a market capitalisation below the requisite $40 million. On Oct 29, the same day Tan spoke to The Edge Singapore, SGX announced it was scrapping the watch-list with immediate effect. Tan maintains that the company would have fulfilled the criteria for exiting the watch-list on its own merit by the end of the six-month review on Dec 1.
“We already started to have profitability two years ago and last year, we had a very substantial profit of close to US$2 million,” says Tan. “The recent price hike in our shares, for whatever reason, helped us too.”
“We are going to apply for the watch-list exit plan by the beginning of December. There’s a window of six months and we are more than qualified to do that. I believe the stock exchange will accept because we fulfil the criteria,” he adds.
Given that the company is the only one that is really in the space business, Tan is upbeat about Addvalue’s prospects. “In a way, we’re unique. Besides this business, we also offer software-defined radio for new applications such as 5G, thermal drones and anti-drone systems. These are things that have growth potential,” he says. “Drones are everywhere now, and they can cover just about every application. Therefore, we are also into that which is relevant to our market growth.”
He adds that Addvalue may relocate some of its operations to the US, as its space industry becomes more vibrant. Moving some of its operations there would also help mitigate factors such as tariffs or geopolitical constraints. A US presence would also help the company become more prominent and better support its US customers.
For now, Tan sees its proprietary IDRS as having a “bright future”. “Looking at the growth rate, it’s still at the knee of the hockey stick,” he says confidently.
