Jan 15 (Reuters) - Funding in the space industry is set

to receive a boost this year from growing U.S.-China tensions,

after startups in the sector clocked $8.6 billion in investments

in 2024, according to a report by investment firm Seraphim

Space.

China has been increasing its efforts to go toe-to-toe with

Western countries in sectors such as satellite production and

rocket launches to supplement the growing need for space-based

imaging, intelligence and data.

"This will very likely continue to drive investment towards

the capitally intensive sectors of the space industry in the

year ahead," said Lucas Bishop, Investment Associate at Seraphim

Space.

Notable deals in the fourth quarter of 2024 included Apple's ( AAPL )

acquisition of a 20% stake in satellite operator

Globalstar ( GSAT ) for $1.5 billion and a $1.25 billion

secondary sale of SpaceX shares, which boosted the company's

valuation to $350 billion from $210 billion earlier in the year.

Firefly Aerospace's $175 million late-stage funding round in

November was the largest deal in the fourth quarter, valuing the

Texas-based rocket maker at over $2 billion.

The space sector is likely to receive a boost from SpaceX

CEO Elon Musk's influence over the incoming Donald Trump

administration as well as billionaire entrepreneur and private

astronaut Jared Isaacman being tapped to lead NASA.

If confirmed, the Shift4 Payments ( FOUR ) founder and CEO

would oversee the space administration's $25 billion budget and

future missions.

"A reallocation of funding toward more cost-effective,

private-sector solutions could further boost investment in

companies offering other space technologies across the board,"

Bishop added.

The rivalry between China and the United States is likely to

intensify after Trump takes office next week, bolstered by the

Department of Defense's expanded Commercial Space Program

funding, Seraphim Space said.