The Morrison government is being urged to plough more money into the Australian Space Agency to better compete against major international institutions racing to secure a share of the world's next big space race.

While astronomers have praised the agency for focusing on developing a high-tech local industry over actual space exploration, they are sceptical the government can achieve its goal of turning the sector into a $12 billion industry by 2030 without a substantial increase in federal funding.

As the 50th anniversary of the moon landing approaches and major international powers gear up for a flurry of new expeditions, Science and Technology Minister Karen Andrews defended Australia's effort.

"This is not just about the federal government pumping money into the space agency, it's about growing Australia's space sector," she said.