Space is the next tech revolution. Internet, semiconductors, cloud, AI, they each had their future-defining moments not so long ago. Now it’s space’s turn.
Space data and services have all it takes to be the next big thing in the near future.
They underpin security and prosperity like never before, from surveillance and missile defence to mobility, agriculture and broadband connectivity. Commercial activity and the NewSpace movement are booming. Defence money is increasingly funding space infrastructures.
As opposed to the tech revolutions of yesterday, Europe can still actively shape this one and must act consequently, scaling up its ambition, developing world-class capabilities and empowering its space industry, to make sure it will not be a second level player compared to USA, China and others.
Getting the budgets at scale
Until 2025, Europe invested a mere 0.07 % of its GDP or €14 billion per year in space activities, almost exclusively in the civil domain. The USA invested roughly five times this amount via NASA and the defence sector. The momentum shifted in 2025 with unprecedented volume of new European investment. Some €35 billion was announced in space projects for security and defence in Germany, €22.3 billion was subscribed at the European Space Agency’s latest Ministerial meeting. These commitments show what European cooperation can achieve when urgency meets political will.
“Stimulating entrepreneurial growth in space and attracting private capital at scale remains Europe’s Achilles heel”
Stimulating entrepreneurial growth in space and attracting private capital at scale remains Europe’s Achilles heel. As reported by the European Space Policy Institute, Europe private investments in space in 2024 amounted to €1.5 billion, a historical 56% increase but still only accounting to 22% of international private investments.
Speed matters
Even with the promise of scale, the importance of innovation and speed cannot be overstated. US tech giants and China increasingly see space as one of the economic drivers for the future, for communications, or in-space computing, for example.
Emerging markets for space technology, such as direct-to-device connectivity, or space-based data centres showcase this transformative potential of space on the wider economy.
Space has a lot to offer. Europe must win this game. It must become a space power, with all things considered, from credible satellite infrastructure and sovereign launch capabilities to competitive and innovative space industry.
This article was published in the 9th edition of Forbes Luxembourg.
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