Catalysing the Space Economy Under Trump 2.0

The re-election of Donald Trump signals a renewed focus and acceleration of U.S. dominance in the space economy. A hallmark of Trump’s first administration was the establishment of the U.S. Space Force in 2019, marking a significant milestone in integrating space into national security and economic strategies.¹ The early indicators from his second term suggest a continuation—and amplification—of these priorities, with an emphasis on public-private partnerships, increased funding and a drive to outpace global competitors, particularly China.

One immediate sign of this renewed vigour is the Pentagon’s recent decision to escalate its budget for proliferated low-Earth orbit (pLEO) satellite services. The increase, from $900 million to $13 billion through 2028, underscores the strategic imperative of resilient satellite communications for both military and civilian purposes.² These developments present a remarkable opportunity for companies innovating in satellite technology, launch systems and space-based analytics—many of which are components of our ARK Artificial Intelligence & Robotics UCITS ETF (“ARKI”).

Could the Trump Administration be a Boon for the Space Economy?

Under Trump’s leadership, the U.S. government has historically funnelled significant resources into space initiatives. The establishment of the Space Force not only strengthened military capabilities but also created a ripple effect in the private sector, spurring innovation and investment in space technologies. The trend is likely to accelerate, with analysts projecting heightened activity in satellite deployments, lunar exploration and Mars missions, alongside a continued focus on national security applications.

Musk’s companies, particularly SpaceX, have already reshaped the economics of space with cost-effective launch systems like Falcon 9 and the development of Starship, designed for interplanetary travel. With a Trump administration in power, Musk’s vision aligns closely with federal priorities, setting the stage for expanded collaborations between SpaceX and U.S. agencies.

Key Space Economy Stocks

The ARK Artificial Intelligence & Robotics UCITS ETF holds several companies poised to benefit from these trends. Let’s explore how their technologies and business models align with the expected catalysts in the space economy:

1. Iridium Communications

Iridium operates a robust network of 66 low-Earth orbit satellites, enabling secure, global communications for both military and civilian applications. In 2024, the company secured a $94 million, five-year contract with the U.S. Space Force’s Space Systems Command to enhance mobile satellite services and sustain security infrastructure.³ This follows the successful launch of Project Stardust, a groundbreaking initiative to integrate 5G standards-based Narrowband-Internet of Things (NB-IoT) Non-Terrestrial Network services into its existing satellite network.⁴ As geopolitical tensions and defense strategies evolve, Iridium’s role in providing uninterrupted, secure connectivity continues to expand, positioning it as a key enabler in the growing space economy.

2. Rocket Lab USA

Rocket Lab USA has established itself as a leader in small satellite launches, a critical capability for both commercial and defense applications. Its Electron rocket, designed for rapid and dedicated satellite deployment, continues to meet the U.S. government’s need for responsive and scalable launch solutions. In 2024, the company advanced its Neutron rocket development, securing a multi-launch contract for this medium-lift vehicle, expected to play a key role in future space missions.⁵ On November 14^th, 2024, the company also launched its first Neutron launch customer.⁶ With its proven track record and innovative approach to space access, Rocket Lab remains at the forefront of enabling the next generation of satellite constellations and national security infrastructure.

3. Palantir Technologies

Palantir Technologies, renowned for its data analytics expertise, is expanding its footprint in the space sector. The company’s platforms enhance decision-making for satellite operations, Earth observation, and space-based defense strategies. In 2024, Palantir secured a $480 million contract from the U.S. Department of Defense to develop the Maven Smart System, an AI-driven platform designed to process vast amounts of data from various sources to identify military points of interest.⁷ Additionally, Palantir partnered with Anthropic and Amazon Web Services to integrate AI models into defense and intelligence operations, further solidifying its role in national security.⁸ As the government prioritises actionable intelligence, Palantir’s ability to synthesise complex data into strategic insights becomes increasingly vital, positioning it as a key player in the evolving space economy.

4. SpaceX (Private)

While not held in ARKI, SpaceX stands as a pioneer in satellite deployment and reusable rocket technology. The Pentagon’s emphasis on proliferated low-Earth orbit (pLEO) satellite constellations, essential for secure communications and anti-jamming capabilities, positions SpaceX’s Starlink as a prime beneficiary. With over 4,000 operational satellites, Starlink is revolutionising global connectivity and establishing itself as a cornerstone in national defense infrastructure.⁹ In October 2024, SpaceX achieved a significant milestone by successfully catching a returning Super Heavy booster using mechanical arms on the launch tower, marking a first in aerospace engineering.¹⁰ This advancement underscores SpaceX’s leadership in developing fully reusable launch systems, further solidifying its role in the evolving space economy.

What are the Implications for Investors?

The Trump administration’s prioritisation of space signals an economic opportunity. By fostering public-private partnerships, expanding defense budgets and emphasising innovation, the U.S. is catalysing a new era of growth for space economy companies. This aligns seamlessly with ARK’s investment thesis, which focuses on disruptive innovation across sectors.

For investors, the ARK Artificial Intelligence & Robotics UCITS ETF offers a compelling opportunity to tap into the transformative potential of the space economy. The ETF encompasses satellite operators, launch providers, and a broader spectrum of innovation-driven sectors poised to thrive under Trump 2.0, including artificial intelligence, robotics, autonomy, and the genomic revolution as healthcare increasingly integrates with AI. This combination of high-growth potential and diversification positions the ETF as a gateway to the industries shaping the future.

With Trump’s return to the White House, the space economy is set to enter an era of unparalleled growth and innovation. As geopolitical and economic forces align to prioritise space as the next frontier, the companies within this ETF are not only positioned to capitalise on this momentum but also to redefine humanity’s role in the cosmos.