Trump 2.0 Era: What It Means for Space Stocks?

With Trump's re-election in 2024, the U.S. enters the "Trump 2.0 Era." This new administration's policies are set to impact not only the U.S. economy but also the U.S. space industry.

In recent weeks, space stocks surged, with KULR Technology surging over 1500%, driven by the "Trump-Musk deal," which recognized the strong bond between Trump and Musk.

The global space industry was valued at $4.69 trillion in 2023, with the U.S. holding over 60% of the market. About 40% of this comes from commercial space. By 2030, global space industry revenue is expected to reach $1 trillion.

Morgan Stanley predicts the global space market will grow to $700 billion by 2025, driven by commercial space, satellite communications, and space tourism. The U.S. will continue to lead in low-earth orbit (LEO) and medium-earth orbit (MEO) satellite launches, with companies like SpaceX and Blue Origin holding significant market shares.

Under Trump's leadership, one of the core policies in the space industry has been the combination of space militarization and encouraging private companies to enter the space market.

Trump's administration established the U.S. Space Force and allocated significant funding for its growth. The 2024 U.S. defense budget proposal shows that the Space Force's budget is expected to reach $25 billion, a major increase from $15 billion in 2019.

According to Citigroup analysts, expanding the Space Force will provide significant contract opportunities for defense companies, particularly Lockheed Martin, Northrop Grumman, and Raytheon.

As demand for high-speed internet grows, SpaceX's Starlink is expanding to provide global coverage. It targets 400 million users by 2025 and will launch 50,000 satellites by 2024.

Morgan Stanley said Starlink could generate over $10 billion in annual revenue for SpaceX by 2025, benefiting satellite manufacturers like Lockheed Martin and Boeing.

The Trump administration has supported NASA's deep space exploration, investing over $3 billion in the Artemis program. The program aims to return astronauts to the Moon and set the stage for Mars missions.

SpaceX plans to send commercial passengers to the Moon and Mars, with its Starship rocket beginning lunar flybys by 2025. The global deep space market is expected to grow 80% over the next decade, with the U.S. leading, boosted by private sector involvement in Mars missions.

The Trump administration has supported commercial space by funding NASA to aid private companies like SpaceX in space exploration and technology. SpaceX, known for its Falcon 9 rocket and cost-effective launches, plans to launch 300 rockets by 2025 and expects annual revenue to exceed $12 billion.

Space tourism is expanding quickly. Virgin Galactic's VSS Unity plans 50 commercial flights by 2025, while Blue Origin's New Shepard aims for hundreds of crewed flights annually starting in 2025.

The space tourism market is expected to reach $6 billion by 2025 and exceed $20 billion by 2030, becoming a key growth area for the U.S. space industry as more companies enter the market.

In addition, the Trump administration has supported other commercial space companies like Blue Origin and Virgin Galactic, helping them commercialize space tourism and deep space exploration.

According to Goldman Sachs, the space tourism market could reach $15 billion by 2025, with annual growth rates of over 20% in the coming decade.