The Final Frontier Is Becoming Big Business. Here Are 3 Space Stocks to Buy Now.

The global space economy is booming, reaching $613 billion in 2025, as space-based advancements make the final frontier a massive opportunity for research and national security. According to McKinsey estimates, the space economy is projected to reach $1.8 trillion by 2035, representing a compound annual growth rate of over 11%.

The space economy is becoming big business as the commercial sector advances technologies in launch services, satellites, imagery, and other key components needed to support space exploration. While investors are buzzing around SpaceX's pending initial public offering, there are three space stocks you can buy right now to invest in the growing space economy.

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Rocket Lab has established an end-to-end space company

Rocket Lab (NASDAQ: RKLB) has established itself as the second-most-used space launch company in the United States, behind SpaceX. The company has found its niche in small-rocket launches for high frequency, logging 85 launches to date.

It currently serves smaller customers with its Electron launch vehicle but is targeting larger payloads with its new Neutron medium-lift rocket, which translates into higher profits and greater margins. Neutron was set to debut sometime this year, but a setback occurred in January when a Stage 1 fuel tank ruptured during a hydrostatic pressure test. The company hopes to launch this rocket in the fourth quarter of this year.

Launch services are one part of Rocket Lab's vertically integrated business. The company has built an end-to-end, vertically integrated space business thanks to its growing space systems business. Here, Rocket Lab provides satellite components, subsystems, mission management, and constellation management. At the end of last year, its space systems business generated $403 million in revenue and accounted for 75% of its $1.85 billion backlog.

The company has also emerged as a defense play with its HASTE launch vehicle, which is a modified version of its Electron launch vehicle for defense purposes. In March, Rocket Lab signed a $190 million deal with the Department of Defense to fund 20 hypersonic test flights using its HASTE vehicle. Given its growing space systems business and importance for national security, Rocket Lab is a top space stock to own.

Planet Labs is leveraging artificial intelligence to enhance its satellite imagery platform

Planet Labs (NYSE: PL) operates the world's largest fleet of Earth-imaging satellites, capturing images of the planet on a daily basis. The company has several constellations. For example, Pelican provides 30cm-class high-resolution imagery sub-hourly, while Tanager uses hyperspectral sensors to detect invisible greenhouse gas leaks, such as methane.

The company has a massive historical archive of planet Earth, and is leveraging artificial intelligence (AI) to turn these images into insights for commercial and government customers. The company recently expanded its partnership with Nvidia to use its AI chips directly on its Pelican-4 satellite, enabling it to process and analyze space data in real time and provide customers with insights in minutes, not hours.

Planet Labs is another space company emerging as a defense name, and in March, it was selected as a prime contractor for the Missile Defense Agency's SHIELD (Scalable Homeland Innovative Enterprise Layered Defense) program. As part of the agreement, Planet Labs will provide AI-enabled monitoring and maritime domain awareness to the U.S. government.

Lockheed Martin is established and a key player in the growing space economy

Lockheed Martin (NYSE: LMT) is a top defense contractor and an architect for the growing space economy. The defense contractor dominates space-based command and control and is a key contractor for the Space Development Agency's (SDA) Proliferated Warfighter Space Architecture, which is a massive network of hundreds of satellites that provides missile warning and data tracking.

Lockheed is also the prime contractor for NASA's Orion spacecraft, which is central to the Artemis Moon missions. In addition, it is part of a consortium of companies, including Palantir and Anduril, which is developing the software and hardware for the Golden Dome antimissile shield.

For investors seeking a more established company in the space economy, Lockheed Martin is an appealing choice. The company is a top defense contractor and boasts a $194 billion backlog. Its partnership with the government provides it with long-term contracts and steady cash flow that can continue to reward investors for years to come.

Courtney Carlsen has positions in Nvidia and Rocket Lab. The Motley Fool has positions in and recommends Nvidia, Palantir Technologies, Planet Labs PBC, and Rocket Lab. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.