Goldman Sachs: Asia's Space Economy Supply Chain Is Underweight, Trading at ~60% Valuation Discount
Taylor Wilson
Goldman launches a 53-stock Asia space economy basket, flagging a ~60% P/E discount versus global peers — capital chased SpaceX narratives into the U.S., but the companies actually building satellites and components sit in Asia.
How big is the space economy, and where is it in the growth cycle?
In 2025, 4,434 satellites were launched globally, up 65% year-on-year; total operational satellites reached 14,266.
Roughly 70,000 satellites are queued for launch over the next five years. The LEO satellite market could expand to $108 billion by 2035 — about a 7× increase.
The 2025 global space economy is estimated at $429 billion: commercial launch revenue grew 33% to $12.4 billion, satellite manufacturing hit $20.4 billion, and ground-network revenue rose 8% to $165 billion.
This means → the space economy is no longer a "launch rockets" story. Ground equipment and satellite manufacturing are the revenue heavyweights — every additional satellite mechanically pulls demand for terminals and components.
Why is Asia's supply chain undervalued?
Global space-themed fund and ETF assets peaked at roughly $25 billion, but Asian companies remain under-represented in those funds and indices.
Asian space stocks trade at a ~60% P/E discount and a ~25% P/B discount to global peers — near the bottom of the historical range.
In plain terms = money flowed first to U.S.-listed names and SpaceX proxies, while the Asian hardware companies that actually fill satellite and component orders haven't been priced in yet.
From April to May, Asian supply-chain names underperformed global peers. Goldman attributes this to space-ETF inflows landing mostly on U.S. listings, amplified by SpaceX IPO expectations. Relative performance has recovered since June.
What role does each Asian market play?
China, Japan, and South Korea sit upstream: China's constellation build-out is driven by a pre-2028 timeline; Japan has a niche in space sustainability and on-orbit servicing; South Korea is building a more integrated model spanning launch, manufacturing, and data applications.
Taiwan sits further downstream but holds mature supply-chain positions in RF/GNSS chips — radio-frequency and satellite-navigation semiconductors — phased-array components, and connectivity hardware, with relatively low execution risk.
India is in early-stage commercialization with three main opportunity threads over the next 3–5 years; ASEAN and Singapore are currently more demand markets and regional hubs.
This reflects a clear picture: Asia's role is not "the Asian SpaceX" but the hardware base of the global satellite deployment cycle — from rockets to chips, the division of labor is already set.
How is Goldman's basket built, and which segment leads?
The basket, ticker GSSZSPCE, covers 53 Asian-listed stocks screened for daily turnover above $5 million, direct space or satellite business exposure, and supply or customer ties to key rocket or satellite operators.
Weighting across four segments: satellite manufacturing & components is heaviest at 40%, ground segment & downstream applications 26%, space-grade materials & electronics 18%, upstream launch & propulsion 16%.
Year-to-date in 2025, satellite manufacturing & components has been the strongest segment, reflecting order visibility and direct constellation-deployment exposure; ground segment and downstream applications have lagged.
This means → the market is pricing near-term earnings delivery first; the later-cycle volume segments — ground equipment, downstream applications — have not been fully re-rated.
Which areas have real orders, and which are still long-dated options?
Mature segments: launch, satellite manufacturing, ground electronics, earth observation, LEO satellite connectivity. Satellite manufacturing has the highest order visibility, with sovereign constellations — government-led satellite networks — providing strong underpinning.
Early-stage areas: on-orbit servicing, orbital AI computing, direct-to-device, space pharma, and microgravity manufacturing. Orbital AI computing is entering early procurement in 2026, driven by terrestrial energy and permitting constraints — linking the space economy to AI infrastructure capex.
Goldman explicitly states that early-stage areas should still be treated as optionality, not as primary valuation support.
What are the risks and the key validation triggers?
Earnings trends at China-related companies remain weak; ground segment and downstream applications have not been re-rated by the market.
If capital continues to concentrate on U.S.-listed names, Asia supply-chain valuation recovery could lag.
In plain terms = the core bet is whether capital is willing to rotate from "chasing the SpaceX narrative" to "buying the supply chain that is actually shipping" — if that rotation doesn't happen, the discount may persist.
Policy capital is already landing: Japan's ¥1 trillion Space Strategy Fund, South Korea's ₩200 billion private space fund, India's IN-SPACe venture mechanism, and Singapore's NSAS. Goldman views government funding as a critical variable for whether orders keep rolling.
Content is for reference only, not financial advice.