Top 15 Space Tech Startups to Watch in 2026: UK, Europe, US and India

LONDON, February 8, 2026 — The global space technology sector is experiencing an unprecedented wave of innovation as startups across India, Europe, and the United States compete to reshape satellite manufacturing, launch services, and in-orbit operations. Venture capital investment in space technology reached $63.8 billion across major markets in 2025, according to Bloomberg, with AI integration, eco-friendly propulsion, and rapid low-cost launch capabilities emerging as dominant investment themes.

Executive Summary

• Who: Fifteen space tech startups spanning India, Europe (including the UK), and the US are leading commercial space innovation in 2026.
• What: These companies are developing next-generation launch vehicles, satellite constellations, in-space manufacturing, and AI-driven space analytics.
• When: Major milestones achieved in late 2025 and early 2026, with critical launches and deployments scheduled throughout the year.
• Why: Declining launch costs, growing demand for Earth observation data, and government programmes supporting commercial space are driving rapid growth.

Key Takeaways

• India’s space startups have collectively raised over $500 million since 2023, led by Skyroot Aerospace and Pixxel.
• European launch providers Isar Aerospace and Orbex are offering missions from $12 million, undercutting traditional providers.
• US startups like Varda Space Industries are opening entirely new markets in space-based manufacturing.
• AI-driven analytics and green propulsion are key differentiators across all three regions.
• Global space VC funding reached $63.8 billion in 2025, with the US accounting for 75% of investment.

India: Five Startups Reshaping the Subcontinent’s Space Economy

1. Skyroot Aerospace — Launch Vehicles

Skyroot Aerospace made history as India’s first private company to reach orbit with its Vikram-1 rocket in 2025. The Hyderabad-based firm has secured $100 million in Series C funding and has a manifest of 12 launches scheduled through 2027. According to Reuters, Skyroot’s cost-per-kilogram to low Earth orbit is 40% below comparable international providers, making it a formidable competitor in the small satellite launch market.

2. Pixxel — Hyperspectral Imaging Satellites

Pixxel operates the world’s largest commercial hyperspectral satellite constellation, with 18 satellites delivering unprecedented spectral resolution for agriculture, mining, and environmental monitoring. The company’s AI-powered analytics platform, Aurora, processes terabytes of imaging data daily. Financial Times reported that Pixxel’s Series B round raised $36 million, with clients including the European Space Agency and several Fortune 500 companies.

3. Agnikul Cosmos — 3D-Printed Engine Launch Vehicles

Agnikul Cosmos has developed the world’s first single-piece 3D-printed semi-cryogenic rocket engine, Agnilet. Following successful test flights in 2025, the Chennai-based company is preparing for its first commercial orbital launch in Q3 2026. The company’s manufacturing approach reduces engine production time from 18 months to under two weeks, according to The Economic Times.

4. InspeCity — Green Propulsion

InspeCity is developing environmentally sustainable propulsion systems for small satellites and space debris removal missions. The company’s green propellant technology eliminates toxic hydrazine from in-orbit manoeuvring, a significant advancement for sustainable space operations. InspeCity has secured contracts with the Indian Space Research Organisation (ISRO) for debris tracking and removal demonstrations.

5. Dhruva Space — Small Satellites

Dhruva Space specialises in small satellite platforms and ground systems for commercial and defence applications. The Hyderabad-based company delivered its first operational satellite bus in 2025 and has a growing order book from the Indian Ministry of Defence. According to Mint, Dhruva Space is valued at approximately $120 million following its latest funding round.

Europe: Five Companies Driving Continental Space Ambitions

6. Isar Aerospace — Launch Vehicles (Germany)

Isar Aerospace is Europe’s most well-funded launch startup, with over €300 million raised to develop its Spectrum rocket. The Munich-based company is targeting its inaugural orbital launch from the Andoya Spaceport in Norway in mid-2026. According to Bloomberg, Isar’s Spectrum can deliver 1,000 kg to LEO at a cost of approximately $12 million per mission, positioning it as a direct competitor to Rocket Lab and SpaceX’s rideshare programme.

7. Orbex Space — Micro-Launchers (UK)

Scotland-based Orbex Space is preparing to launch its Prime rocket from the SaxaVord Spaceport in Shetland, marking the UK’s first vertical orbital launch. The company’s bio-propane-fuelled engine reduces carbon emissions by 86% compared to conventional kerosene rockets. Orbex has pre-sold 15 launch slots, and the Financial Times reports the company is valued at over £200 million.

8. Exotrail — Electric Propulsion (France)

Paris-based Exotrail has established itself as Europe’s leading provider of electric propulsion systems for small satellites. The company’s ExoMG thrusters have been deployed on over 40 satellites in orbit, enabling precise orbital manoeuvring and extending satellite operational lifespans. Exotrail also offers SpaceVan, an orbital transfer vehicle that positions satellites in their target orbits after launch.

9. Open Cosmos — Satellite Manufacturer (UK)

Open Cosmos provides end-to-end satellite missions, from design and manufacturing to launch coordination and data delivery. The UK-headquartered company operates a vertically integrated model that has reduced satellite development timelines from three years to under 12 months. According to Reuters, Open Cosmos has delivered over 15 satellites for government and commercial clients across four continents.

10. ICEYE — SAR Satellites (Finland)

ICEYE operates the world’s largest synthetic aperture radar (SAR) satellite constellation, with over 30 satellites providing all-weather, day-and-night imaging capabilities. The Helsinki-based company’s data is used for flood monitoring, maritime surveillance, and insurance risk assessment. ICEYE reported $136 million in revenue in 2025, according to Bloomberg, making it one of Europe’s most commercially successful space startups.

United States: Five Startups Pushing the Frontier

11. Varda Space Industries — In-Space Manufacturing

Varda Space Industries is pioneering the production of pharmaceuticals and advanced materials in microgravity. The company’s reusable capsules are designed to manufacture crystals and compounds that cannot be produced on Earth, then return them for terrestrial use. Varda completed its second successful re-entry mission in early 2026 and has contracts with the US Air Force and major pharmaceutical firms. Reuters estimates the space manufacturing market could reach $10 billion by 2030.

12. Apex — Satellite Buses

Los Angeles-based Apex is revolutionising satellite bus manufacturing with a standardised, modular approach that reduces delivery times from 24 months to just five months. The company’s Aries platform supports payloads from 25 to 200 kg, serving both commercial and government customers. Apex raised $95 million in Series B funding in late 2025, according to The Wall Street Journal.

13. Astranis — Small GEO Satellites

Astranis is deploying compact geostationary satellites that provide dedicated broadband connectivity to underserved regions. Unlike large traditional GEO satellites costing $300 million or more, each Astranis MicroGEO satellite costs approximately $30 million and can be manufactured in months. The company has contracts covering four continents and has raised over $500 million in total funding.

14. Hadrian — Automated Machining

Hadrian is building AI-powered autonomous factories for precision aerospace and defence machining. The company’s facilities produce flight-critical components for rocket and satellite manufacturers, with error rates 10 times lower than traditional machine shops. According to Bloomberg, Hadrian has raised $217 million and counts SpaceX, Lockheed Martin, and Northrop Grumman among its customers.

15. Aptos Orbital — Cloud-Connected Satcom

Aptos Orbital is developing cloud-native satellite communication systems that integrate directly with terrestrial cloud infrastructure. The company’s approach enables real-time data processing aboard satellites, reducing latency for Earth observation and IoT applications. Aptos has secured partnerships with Amazon Web Services and is preparing its first demonstration satellite for launch in Q4 2026.

Space Tech VC Funding by Region (2025)

Region	VC Funding (2025)	Top Startup	Key Focus	Notable Investor
US	$48.2 billion	Varda Space Industries	In-space manufacturing, Launch	Founders Fund, Khosla Ventures
Europe	$12.1 billion	Isar Aerospace	Launch vehicles, SAR imaging	Porsche SE, Lombard Odier
India	$3.6 billion	Skyroot Aerospace	Launch, Hyperspectral imaging	GIC Singapore, Temasek
South Korea	$1.2 billion	Innospace	Small launch vehicles	Korea Investment Partners
Japan	$2.1 billion	Astroscale	Debris removal, servicing	SPARX Group

Source: Bloomberg, Space Capital, NASSCOM estimates (2025)

Startup Profiles: Funding, Stage, and Sector Comparison

Startup	Country	Sector	Total Funding	Key Milestone (2025-26)
Skyroot Aerospace	India	Launch	$100M+	First private Indian orbital launch
Pixxel	India	Satellites	$71M	18-satellite hyperspectral constellation
Agnikul Cosmos	India	Launch	$36M	3D-printed engine test flights
InspeCity	India	Propulsion	$8M	ISRO debris removal contract
Dhruva Space	India	Satellites	$15M	First satellite bus delivery
Isar Aerospace	Germany	Launch	€300M+	Spectrum rocket maiden launch
Orbex Space	UK	Launch	£200M+	UK’s first vertical orbital launch
Exotrail	France	Propulsion	€54M	40+ satellite thruster deployments
Open Cosmos	UK	Satellites	$50M+	15+ satellites delivered
ICEYE	Finland	SAR Satellites	$304M	$136M revenue, 30+ SAR satellites
Varda Space	US	Manufacturing	$90M+	Second re-entry mission
Apex	US	Satellites	$95M	5-month satellite bus delivery
Astranis	US	Communications	$500M+	Multi-continent broadband deployment
Hadrian	US	Manufacturing	$217M	AI-autonomous machining for SpaceX
Aptos Orbital	US	Communications	$25M	AWS partnership, demo satellite

Space Tech Startup Investment Data 2026

BUSINESS 2.0 Analysis

The space tech startup landscape in 2026 reflects a fundamental shift from government-dominated programmes to commercially driven innovation. For more on related space developments, the convergence of AI, advanced manufacturing, and declining launch costs is enabling startups to challenge established aerospace primes in ways that were impossible a decade ago.

India’s emergence as a serious space tech ecosystem is particularly noteworthy. The revised deep tech startup rules, extending recognition to 20 years and tripling revenue thresholds, provide a supportive regulatory framework for capital-intensive space ventures. Skyroot and Pixxel have demonstrated that Indian space startups can compete on technical capability, not just cost.

In Europe, the race to achieve independent launch capability from European and UK soil has intensified. Isar Aerospace and Orbex represent critical strategic investments for a continent that has historically relied on Arianespace and now faces increasing competition from SpaceX. ICEYE’s commercial success proves that European space startups can build globally competitive businesses.

“The space startup ecosystem has matured beyond launch services into manufacturing, data analytics, and infrastructure,” said Chad Anderson, Managing Partner at Space Capital, in an interview with Bloomberg. “We’re seeing the emergence of a full space economy value chain.”

“India’s space tech sector is at an inflection point where government support, technical talent, and venture capital are converging,” noted Pawan Kumar Chandana, CEO of Skyroot Aerospace, speaking to Reuters.

Why This Matters for Industry Stakeholders

For investors, the diversification of space tech across three major regions offers portfolio opportunities beyond the US-centric market that has dominated space VC for the past decade. European and Indian startups offer exposure to different risk profiles, regulatory environments, and end markets.

For aerospace and defence companies, these startups represent both competition and partnership opportunities. Traditional primes are increasingly sourcing components and services from startups like Hadrian and Exotrail, while competing with them for government contracts.

For technology companies, the integration of AI, cloud computing, and space infrastructure creates new market adjacencies. Amazon’s partnership with Aptos Orbital and the growing use of AI in satellite analytics suggest that space tech is becoming an extension of the broader technology ecosystem.

Forward Outlook

The space tech startup sector is projected to continue its rapid growth trajectory through 2026 and beyond. Key developments to watch include Isar Aerospace’s maiden orbital launch, Varda’s scaling of in-space manufacturing, and the continued expansion of India’s space startup ecosystem under the revised regulatory framework. For more on SpaceX and LEO network developments.

The convergence of commercial space with AI, sustainability, and advanced manufacturing suggests that the most successful space startups of 2026 will be those that integrate multiple technology domains rather than competing on a single capability.

Disclosure: This analysis is based on publicly available funding data, company announcements, and industry reports. Forward-looking statements reflect current market trends and are subject to change. BUSINESS 2.0 NEWS maintains editorial independence and has no financial interest in the companies mentioned.

References

1. Bloomberg — Space Economy Investment Tracker
2. Reuters Technology
3. Financial Times — Aerospace & Defence
4. Space Capital — Quarterly Investment Reports
5. The Wall Street Journal
6. The Economic Times
7. Mint
8. European Space Agency — Boost! Programme

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