Investors should support new OCT manufacturers to ensure competition and innovation

SpaceX’s entry into the optical communication terminal (OCT) sales market has significantly reshaped investors’ attitudes. SpaceX and other incumbent players have in-house capabilities that allow them to form largely closed ecosystems in which procurement is internalised, leaving minimal opportunity for third-party players. Investors are increasingly sceptical about the size of the addressable market that will be available to competitors, start-ups and new manufacturers as these incumbents scale vertically. This has led to capital constraints that stall innovation, delay product development and challenge operational scale-up. Instead, investors must strategically support emerging OCT players to ensure a competitive, sovereign and innovation-driven future for the space-based optical communications market.