Despite uncertainties surrounding global space collaboration and shifting reliance on U.S. support, international startups continue to actively enter the U.S. space market. Established European aerospace giants like Airbus, BAE Systems, and Thales have long maintained successful operations in America. While Europe continues its entry into this market, today's wave of newcomers spans broader geographies—including a notable influx from the Asia-Pacific (APAC) region, particularly Japan and India —and encompasses technologies ranging from traditional satellite services, spacecraft components to emerging areas like In-Space Servicing, Assembly, and Manufacturing (ISAM), Space Situational Awareness (SSA) and deep space exploration. There are several benefits to companies entering the US market such as access to the funding ecosystem, global collaboration, clear regulatory frameworks; however, it can be argued the main driver is the attractive market size and business case for tapping into the US defense, civil and commercial markets.
US Market Attractiveness
Government Spending
Countries like China, Italy and Japan continue to grow their government space spending aggressively but the US remains the largest spender, making it an attractive target for international companies to establish US presence.
Commercial Industry
US remains the largest commercial space market, but similar to the government spending, an ESPI report shows that the aggressive growth rates in private investments in commercial space are now occurring outside traditional Western markets, particularly in China, Japan, India, Australia, Israel, and Canada.
The trend of Asian countries experiencing a faster growth rate in startups/VC deal counts has been ongoing since 2016 but the value of the investments remain higher in the US, making it an attractive market on a global stage.
Market Entrants
As commercial space industries mature worldwide, companies naturally expand beyond domestic markets, aiming to leverage new opportunities abroad, with US being one of the main targets. Europe, in particular, remains actively involved, with the UK leading aggressive private-sector investment.
In the APAC markets, China has been a key driver of the commercial industry growth but the entrants into the US market have noticeably been Japan and India startups. While Japan dominates in the total value invested in the industry (commercially and federally), India dominates in the number of space startups innovating (>350). Similar levels of space VC deal activity in 2024, it provides both countries the attributes prime for expansion.
Japan has notably increased its U.S. market presence, exemplified by the successes of Astroscale and ispace. India has recently entered this dynamic, with Digantara becoming the first Indian commercial space company to establish a fully incorporated U.S. subsidiary in 2025, followed closely by propulsion company Bellatrix Aerospace, marking a new phase in India's global space aspirations. The commercial expansions of these two countries are also a byproduct of the increased government alliances between US and Japan in 2024 and US and India in 2025.
As international space competition accelerates, the influx of global companies into the U.S. marketplace illustrates both the dynamism and resilience of the American space ecosystem. The growing presence of companies from diverse geographies, particularly from Japan and India, directly reflects increasing governmental collaboration and the global commercialization of space. Looking ahead, we can expect more emerging, high-growth countries, such as South Korea, to establish operations in the U.S., alongside continued strategic expansions by UK and European companies. This trend underscores the U.S. market’s role as a critical hub for international space innovation and partnership while also strengthening the American supply base from global collaborators.