Private investment in space companies around the world more than doubled to $23 billion in the year through June, according to British investment firm Seraphim and Relm Insurance, as investors increasingly look for businesses with demonstrated commercial potential.

The surge comes as SpaceX's June initial public offering reshaped the investment landscape and attracted new attention to the space economy. Investors are increasingly searching for companies that could deliver returns similar to those associated with major space companies, while becoming more selective about early-stage ventures that have yet to prove their business models.

The report identified Earth observation, in-orbit manufacturing and satellite supply chains among the areas attracting capital. Earth observation companies have benefited from established technology and growing demand for the data and analytics they provide to industries including shipping, agriculture, energy and wildfire monitoring.

Capital has become increasingly concentrated among Earth observation companies with visible revenue and experienced leadership. Andrew Bonwick, Relm's vice president of product development, said customers are increasingly buying the information produced by space-based systems rather than viewing the products simply as space technology.

In-orbit manufacturing remains an earlier-stage sector, with companies facing challenges including limited opportunities to launch materials into orbit and return finished products to Earth. Some companies have pursued mergers, while others have struggled to expand beyond small pilot projects.

Satellite supply chains have also become more complex as production increases. Some companies are bringing more manufacturing operations in-house to control costs and reduce dependence on outside suppliers. Meanwhile, the growth of smaller and more experimental space ventures is creating demand for specialized insurance products because traditional policies often do not fit the risks associated with emerging space projects.