Japan’s funding is reported to grow its private space sector to rival SpaceX. Credit: Gorodenkoff/shutterstock.com

Japan’s government has pledged $6.6bn (¥1trn) towards its space sector in a new Japan Aerospace Exploration Agency (JAXA) fund. 

The fund is part of a Japanese ten year plan to promote the country’s space economy. A spokesperson for the government clarified that ¥300bn had already been set aside for JAXA in Japan’s latest supplementary budget. 

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The money is intended to go towards university research into space exploration, as well as space startups and other private sector companies. Funding is a major hurdle in the space economy, given the huge amount of money needed to fund space travel that is disproportionately at risk of crashes and other technological faults. 

Japanese newspaper Nikkei reported that this funding was intended to support a private space sector to rival US company SpaceX, which has already made two attempts into space. 

Japanese minister for space travel Sanae Takaichi spoke about the funding, stating that it was “necessary” to speed up Japan’s space development to avoid lagging behind rivals. 

In 2022 the space economy was valued at approximately $450bn, but by 2030 research company GlobalData predicts it could be worth between $760bn and $1trn. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

GlobalData’s Thematic Intelligence: space economy report found that the industry had seen a recent influx of startups and privately owned companies. Investor interest, clear market gaps and technological advancements were the main factors credited to this.  

“The sector has become incredibly competitive,” GlobalData’s report reads, “Space is no longer the sole domain of governments and incumbent aerospace and defense companies. Technological advances in manufacturing, propulsion, and the launch of rockets have made it much easier and less expensive to venture into space.”