Space - Industry - Europe Market, Share and Trends 2023-2028

Summary of Space

The European space industry generates over €50 billion annually– with commercial revenues growing at around 8% per year. It supports over 230,000 high-tech jobs across Europe. Commercial space activity is booming with the growth of private spaceflight, satellite manufacturing and new applications. Startups are emerging across Europe in sectors like smallsat manufacturing, in-orbit services and space resources.

Several European nations like France, Germany, Italy and the UK have robust national space agencies and programs. France’s CNES and Germany’s DLR play leading roles alongside ESA. ESA plays a coordinating role, establishing joint programs for areas like launchers, Earth observation, science and exploration. This allows Europe to pool resources for large missions.

Recent policy reforms aim to further stimulate private investment and innovation. The EU’s Space Programme seeks to develop a competitive and innovative European space economy. National governments are also supporting commercial initiatives. Based on our estimates, we can say that Europe’s regional space industry is forecasted to be a $136.5 billion industry in 2029 from $98.7 billion in 2023 with a CAGR of 5.45%.

New technologies like reusable rockets, small satellites and in-orbit services are lowering the costs of access to space, enabling more organizations to participate. This is driving growth in commercial space markets.

Recent Trends and Insights

In recent years – Europe has been catching up – and it is now leading the way in some areas. In 2023, Europe surpassed the US in total space technology investments for the first time. The ‘Seraphim Space Index’ – a quarterly review of global private investment compiled by tech investor Seraphim Space – recently revealed that Europe’s investment in 2023 is poised to match or exceed 2022 levels, given that Q1 is already at nearly 50% of the previous year’s value. Total investment in the first quarter of this year reached $1.4 billion (€1.3 billion) – up 75% from $801 million in the fourth quarter of 2022.

The European Space Agency (ESA) is the leading agency in Europe, coordinating all European space activities, including scientific research, satellite development and human spaceflight. In November 2022, it received a record 17% increase in funding from its 22 member states to back ambitious space exploration projects and maintain Europe’s competitiveness in the global space sector. Aggregated EU Member States’ annual spending on civil space operations is around €10 billion.

However, the “single biggest” factor in Europe’s space investment overtaking the US in the first quarter of 2023 was the €155 million funding round of the German launch provider Isar Aerospace. The “good news” for the space industry is that Europe and the US will likely see increased investment in the future. This is because space technology is becoming increasingly important for addressing a wide range of social, environmental and economic challenges.

Product Insights

Small satellite manufacturing is a major focus, with companies like Surrey Satellite in the UK building various satellite buses and payloads. Their Triton-X platform can support multiple smallsat missions.

Telecommunications satellites remain important, with Airbus building commercial comsats for operators like Eutelsat. Thales Alenia Space is another leader in satcom manufacturing. Earth observation is a strong domain, with companies developing sensors for Copernicus satellites as well as commercial observation satellites. Airbus, Thales and Leonardo are leaders.

Navigation satellites are another core area, with European GNSS programs Galileo and EGNOS complementing GPS. Downstream companies are creating positioning/timing products. In-space technologies are emerging like Orbex’s 3D printed rocket engines, effective for small launch vehicles. Airbus is developing in-orbit satellite servicing technologies.

Reusable rocket technologies are advancing, with SpaceX-like ambitions at the European level through projects like Skylon and Prometheus. The European space industry aims to utilize the many benefits of space through significant commercialization of various aspects of the space industry, including– satellite navigation, tourism, consumer and health markets, agriculture and IoT applications.

Key Companies

Some major players within this vast domain of industry are

• Arianespace
• Avio
• Orbex
• Skyrora
• Isar Aerospace
• Rocket Factory Augsburg
• SES
• Thales Alenia Space
• Airbus
• ClearSpace

Regional Analysis

France, Germany, Italy and the UK are the largest space economies in Europe. France in particular has a very large aerospace sector– with over 42,000 space industry jobs.

Emerging space nations like the Netherlands, Belgium, Poland and Portugal are growing their space capabilities significantly. The Netherlands aims to become a ‘space hub’ with initiatives like SpaceCampus and Space53. Scandinavian countries also have growing space industries with – Denmark, Norway and Finland developing smallsat technologies and supporting startups.

Central/Eastern European nations are increasingly participating in ESA programs and developing their own space technologies and applications. Poland’s satellite manufacturing sector is expanding. Collaboration between European nations and companies is a major strength, with cross-border partnerships and pan-European projects and agencies like ESA driving coordination and innovation.

UK-based Orbex is one of a handful of young European launch companies hoping to plug the current rocket gap. Orbex intends to break into the smallsat launch scene– with the market for the miniaturized machines estimated to be worth about US $13.7 billion by 2030. By radically modifying its organization and opening up its market to greater competition, Europe’s space industry is undergoing an essential paradigm shift. But this shift is only one step toward ensuring that the European Union fully masters its destiny in this field.

Market Segmentation

By Type:

• Satellite Services
• Satellite Manufacturing
• Satellite Launch Services
• Space Exploration

By End user:

• Commercial Sector
• Government Sector
• Military & Defense Sector
• Scientific research Sector

By Enterprise Size :

• Large Industries
• Small & Medium Industries

By Country:

• Germany
• United Kingdom
• France
• Italy
• Russia
• Netherlands
• Switzerland

Our Methodology

We have offered a well-founded review of the Europe’s regional Automotive market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.