(Reuters) -Global space investment hit a record $3.5 billion in the third quarter, driven by a wider range of startups and continued defense spending, according to a report released Friday by space-focused investment firm Seraphim Space.

Investments, from rocket-makers to low-Earth-orbit satellites, jumped from $1.79 billion in the same period last year, solidifying space as a leading growth sector in technology alongside AI.

Analysts said the record quarter reflects a maturing market, with investment now spread across more companies rather than being dominated by a handful of big-ticket deals.

"Historically, most of the capital in the sector was concentrated in just a couple of players, SpaceX and OneWeb," said Lucas Bishop, investment associate at Seraphim Space.

"What we're seeing now is a far more diverse set of investable companies, signaling that space has evolved into a broader, more mature market."

While hardware-focused defense tech firms such as Hadrian, Apex and Hermeus led the top deals in the U.S., China's Galactic Energy raised the most with a $336 million round last month.

Funding is increasingly being driven by government efforts to build up domestic space and defense industries in the U.S., China and Europe, the report said.

Analysts expect the momentum to carry into 2026 as commercial satellite networks expand and governments ramp up procurement, opening new opportunities for dual-use technologies across civilian and defense markets such as OneWeb and SpaceX's Starshield program.

Public space companies have surged with Rocket Lab ( RKLB ) and Planet Labs having more than doubled, while AST SpaceMobile ( ASTS ) has more than tripled after showcasing satellite-to-phone broadband.