By BlueShift | 2026-03-09

In the aftermath of a third failed attempt to put a satellite into orbit, Tokyo-based startup Space One pointed to lessons learned, amid enduring hopes that its fourth and fifth attempts slated for later this year will succeed and build trust.

Space One, which hopes to become the first private Japanese firm to put a satellite in space, launched the Kairos rocket from Spaceport Kii in Japan's Wakayama region on March 5, but it spiraled back to Earth shortly afterwards.

The rocket was carrying several satellites, including one for a Tokyo high school.

The incident is "under investigation," Space One said during a briefing, noting that "no major anomalies" had been identified within the spacecraft itself and the rocket had not deviated from its flight path.

"It seems reasonable to assume that some issue occurred within the flight interruption system," the company said, referring to a safety mechanism capable of automatically ending the flight.

During a March 5 briefing, Space One president Masakazu Toyoda said it was "very regrettable that we were unable to meet expectations," Japanese daily newspaper The Asahi Shimbun reported.

"It may appear to be a step backward compared with the second vehicle, but we have once again steadily accumulated know‑how and experience, and we have made progress. I do not consider this a failure," Toyoda said.

Two previous launched failed in March 2024, when the solid-fuel rocket exploded seconds after lift-off, while engineers terminated a second operation shortly after launch due to a technical problem, AFP reported.

The latest launch had been slated for March 4, but was cancelled due to a glitch just 28.9 seconds before lift-off.

Hopes for satellite-launching service

Space One was founded in 2018 by businesses including Canon Electronics, IHI Aerospace, construction firm Shimizu and the government-run Development Bank of Japan.

The startup is hoping to establish a satellite launching service to tap into expanding global demand, as it seeks, along with other startups, to offer cheaper and more frequent space exploration opportunities.

Space One aims to launch 20 rockets annually by the latter part of the decade, and 30 per year by the early 2030s, according to The Asahi Shimbun.

Japan successfully launched only three rockets in 2025. And no Japanese firm has yet achieved a satellite launch with a commercially-built rocket.

While its own domestic launch capability is under development, Japan continues to rely on the United States for its launches, using commercial companies such as SpaceX and Rocket Lab, which operates in New Zealand.

"Japan has a dearth of homemade launch vehicles despite expanding defense needs and business opportunities for domestic satellite makers," Reuters reported.

Japan approved a record $58 billion defense budget in December for fiscal year 2026. This includes significant funding for space and satellite operations, as Tokyo integrates the space domain into its national security strategy.

The defense ministry has signed contracts with Space One and other firms that aim to place dozens of national security satellites in space, per Reuters.

The ministry also is reportedly developing a "bodyguard" system to shield military satellites from Chinese and Russian "satellite killers."

China in March announced a 7% boost to its defense budget for 2026, as it steadily increases spending and plans to carry out "major defense-related projects" over the next five years, per AFP.

Beijing plans to spend $276.8 billion on defense, according to a report published at the opening of the annual "Two Sessions" parliamentary meeting.

A competitive player in the space sector

Japan is regarded as one of the most competitive players in the space sector, yet needs to establish commercial cargo operations, among other measures, to catch up with global leaders, analysts told Japanese daily The Mainichi.

Tokyo ranks third in public investment in the space sector, it said, and is among the first five countries to land a probe on the moon.

Its cooperation with the United States on space exploration includes the Artemis Project, which aims for an eventual return to the moon, and it has signed space exploration cooperation agreements with France and the European Union.

The Japanese government supports the growing number of companies seeking to offer services ranging from communications and in-orbit servicing to space travel through its Space Strategy Fund.

It plans to pump $6.5 billion into the sector over the 10 years, but its financial assistance lags behind that of countries such as the United States.

"The ecosystem of startups is also immature, leading to a substantial difference in the amount they can raise in Japan," PwC Consulting senior manager Yosuke Enomoto told The Mainichi.

"The space strategy fund works to expand players in the space industry, but on the flip side, it also spreads fund allocations," Enomoto said, noting that Tokyo could consider focusing on specific areas to make better use of its budget.