The Space Economy Evolve chapter interrogates how established enterprises can transform to compete in the dynamic New Space Economy. Situating the analysis within the sector’s shift from government exclusivity to commercialisation and cross-industry collaboration, it delineates foundational drivers, falling launch costs, technological convergence, and public–private partnerships, that expand opportunity while intensifying competitive pressure. The strategic rationale for transformation is articulated around leveraging incumbent capabilities and infrastructure, building resilience through diversification, and aligning legacy operating models with innovation cadence. The chapter identifies key enablers: cultural renewal, agile cross-functional teams, concurrent engineering, and digital systems frameworks, notably Model-Based Systems Engineering (MBSE). It addresses regulatory compliance, financing architectures, and alliance strategies, emphasising calibrated risk management and speed of execution. Comparative pathways for incumbents and start-ups are evaluated with attention to scaling dynamics, market timing, and multidimensional performance metrics that integrate financial outcomes with intellectual capital, partnerships, and learning. By synthesising best practices and future-oriented strategies, the chapter equips legacy organisations to bridge traditional strengths with the agility and vision required to become integral actors in the rapidly expanding, innovation-led space economy.