COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A vision for the European Space Economy
Date: 2025-06-25
Institutions: Directorate-General for Defence Industry and Space, European Commission
Subjects: EU strategy, common foreign and security policy, competitiveness, extra-atmospheric space, innovation, international cooperation, single market, space technology, strategic autonomy, use of outer space

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 25.6.2025  COM(2025) 336 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A vision for the European Space Economy  
 
 
A VISION FOR THE EUROPEAN SPACE ECONOMY 

1.  INTRODUCTION 

The space economy encompasses all economic activities, both on Earth and in space, that are enabled 
by space technologies, services, and infrastructure. This includes the design and manufacturing of space 
infrastructure;  in-space  operations  and  services;  access  to  space;  resource  exploration  and  use;  and 
space data applications and services in other sectors of the economy. 

The  global  space  economy  is  rapidly  evolving,  driven  by  international  competition,  technological 
innovation, and geopolitical tensions. Its economic value is projected to reach USD 1.8 trillion by 20351. 
In 2024, public investment in space amounted to EUR 122 billion globally, while in Europe it amounted 
to EUR 12.6 billion, i.e. 10%. Global private investment in space totalled EUR 7 billion, whereas in 
Europe it totalled EUR 1.5 billion, i.e. 22%. In terms of market value, Europe’s share of the global 
upstream non-captive market was 33%, whereas in the downstream market it stood at 19%2.  

In  the  Communication  ‘A  Competitiveness  Compass  for  the  EU’3,  the  European  Commission 
recognises the importance of closing the innovation gap by supporting new sectors such as space. In the 
May  2024  Council  conclusions  on  the  contribution  of  space  to  Europe’s  competitiveness4,  it  is 
underlined that a more competitive European space sector can contribute to the economic and social 
challenges  of  the  Union  and  reinforce  its  role  at  global  level.  The  EU  should  therefore  enable  its 
Member States, companies and citizens to reap the benefits of the global space economy, by continuing 
to invest in space and ground infrastructure and by integrating space-based services into all sectors of 
the economy.  

Leading space powers such as the Unites States and China are leveraging space to achieve strategic 
objectives  serving  military,  economic,  scientific  and  political  interests,  with  ambitious  space 
programmes to the Moon and Mars. This is triggering a wave of investment and driving innovation in 
space across a range of areas from space transportation to robotics, in-space manufacturing and in-orbit 
servicing. Apart from exploration goals, ever-increasing competition is also unfolding in Earth’s orbit, 
where  a  growing  number  of  established  and  emerging  space-faring  nations  are  bringing  innovative 
technologies  to  space,  serving  industries  on  Earth  including  defence,  navigation,  communication, 
agriculture, banking and insurance.  

Europe has long been a leader in satellite and space technology despite much lower levels of funding. 
It is renowned for its high-quality products, expertise in space science and technology, unique talent, 
industry  and  capacities.  The  EU  owns  and  continues  to  invest  in  world-class  infrastructure  for 
positioning,  navigation  and  timing;  observation;  and  secure  connectivity  (with  Galileo,  EGNOS, 
Copernicus and IRIS2 respectively).  

In the context of the Global Gateway strategy, the EU and its Member States and the EU private sector 
are developing international partnerships and investments in secure connectivity, satellite navigation 
and Earth observation that reflect the mutual interests of the EU and its partners for security, prosperity 
and competitiveness.  

1 ‘Space: The $1.8 Trillion Opportunity for Global Economic Growth’, Insight Report World Economic Forum, 
April 2024. 
2 ‘ESA Report on the Space Economy 2025’, European Space Agency, March 2025 
3 COM(2025)30 
4 Council conclusions on ‘Strengthening Europe’s competitiveness through space’, May 2024. 

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The  development  of  reusable  and  heavy-lift  launch  vehicles,  along  with  the  mass  production  of 
thousands of satellites grouped in mega-constellations, are revolutionising access to space. Satellites in 
lower Earth orbit generally have shorter lifespans and therefore require more frequent replacement.  

These  needs  highlight  the  importance  of  adopting  sustainable  technologies  and  in-space  services  to 
ensure long-term viability in space operations. Similarly, the adoption of cloud computing, artificial 
intelligence  and  data  analytics  is  reshaping  data  applications  and  services,  enabling  more  efficient 
processing, interpretation and delivery of satellite data tailored to specific industry needs.  

While these rapid developments are reshaping the global space economy, the EU has seen its market 
share erode in key areas5. Increasing global competition and changing market dynamics have placed 
significant pressure on the EU’s space industrial sector. Europe has lost its leading market position in 
commercial rockets and satellite communications.In addition, the European space sector would benefit 
from updated governance and investment rules, and greater coordination of public spending in a true 
Single Market for space. 

The EU nevertheless possesses all the ingredients required in order to be a leader: world-class research 
institutions, strong industrial capabilities and, an educated workforce. The Letta6, Draghi7 and Niinistö8 
reports  have  identified  space  as  a  key  sector  for  future  growth,  competitiveness,  resilience  and 
preparedness. As reliance on space-based technologies deepens, the EU needs to reaffirm its place in 
this global space race. In the current geopolitical environment, losing this position will have far reaching 
consequences  for  Europe’s  economic  security,  strategic  autonomy,  and  competitiveness.  A 
comprehensive approach would help to maximise the impact of the EU’s space economy objectives. 

The objective of this Communication is, therefore, to provide a vision allowing to position the EU as a 
leader in the global space economy by 2050, leveraging space technologies and services on Earth and 
in space to strengthen  the EU’s competitiveness, resilience, security and autonomy by also building 
upon  the  European  Union  Space  Strategy  for  Security  and  Defence9  and  the  Preparedeness  Union 
Strategy10, while accelerating economic growth, creating business opportunities and quality jobs.  

This will require the full leveraging of public and private investment at EU and national levels. Based 
on  the  existing  EU  legal  framework,  it  is  essential  to  apply  innovative  and  dynamic  procurement, 
including anchor tenancy arrangements11, since space infrastructures and ensuing services very much 
rely on investment predictability coupled with flexibility. 

This Communication focuses on the comprehensive development of the European space economy. First, 
it addresses space as a market sector targeting its effective and robust growth, highlighting the building 
blocks needed to boost economic growth within Europe. Subsequently, it deals with the thematic aspects 
of  the  space  economy  in  the  different  space  domains,  beginning  with  Earth-based  activities  and 
transitioning into the ‘in-space’ economy, from orbital to beyond Earth activities. In particular, it will 
highlight  the  importance  of  continuity  and  evolution  of  space  infrastructure  and  services, 
acknowledging that such capital expenditure is a sine qua non condition for jobs growth in the overall 
European economy.  

5 Draghi, M., ‘The future of European competitiveness’, September 2024, page 62. 
6 Letta, E., ‘Much more than a market’, April 2024. 
7 Draghi, M., ‘The future of European competitiveness’, September 2024. 
8 Niinistö, S., ‘Safer Together Strengthening Europe’s Civilian and Military Preparedness and Readiness’, 
October 2024. 
9 JOIN(2023) 9. 
10 JOIN(2025) 130. 
11 Ensuring a substantial part of a contract allowing to keep the business active and attract other customers. 

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2.  A MARKET SECTOR ENABLING EUROPEAN COMPETITIVENESS 

Despite having world class capacities, the EU has yet to fully harness the potential of its space economy. 
Limited investment and growth funding, complex procurement models, a need for better coordination 
at EU level, slow time to market, and a siloed approach between space and defence, are hindering the 
sector’s potential for further growth.  

Foreign government expenditure outpaces the EU. The EU’s investment has ranged between 15% and 
20% of US levels. In 2023, public expenditure in Europe on space stood at USD 15 billion, compared 
with  USD  73  billion  in  the  US12.  Civil  space  expenditure  accounted  for  around  85%  of  total  space 
expenditure in the EU in 2023, in striking contrast with the approach of other major space powers13. 
China is expected to overtake Europe in the next few years, reaching some USD 20 billion by 2030. 
This, in turn, shifts market dynamics and broader contract distribution to commercial players (startups, 
scaleups, small and medium-sized enterprises (SMEs), mid-caps, including smaller ones, legacy).  

The  EU  needs  to  make  faster  progress  in  strategic  areas  such  as  access  to  space,  satellite 
communications,  Earth  observation,  positioning,  navigation  and  timing,  space  safety,  artificial 
intelligence, quantum technologies, synergies with defence, and in-space operations and services. Other 
spacefaring nations are advancing rapidly in these areas or already have proven technology.  

The EU should rely on its space sector (manufacturing and services) to ensure continuity and evolution 
of its capacities. It should also maximise economic value from space services in other market sectors, 
by  offering  more  tailored  solutions  and  tackling  technological  challenges  to  meet  user  needs. 
Accordingly, other market sectors benefiting from space services are expected to plan interoperability 
and standards with solutions coming from EU systems in the upgrade of their respective infrastructures 
or user terminals.  

Taking  a  broader  stance  to  space  as  a  market  sector,  and  mirroring  the  Competitiveness  Compass 
approach, the EU will support it around six building blocks: 

I. 

II. 

III. 

IV. 

V. 

VI. 

create  an  EU  single  market  for  space,  complementing  the  EU  Space  Act14  as  an  overall 
foundation, allowing companies to operate seamlessly and more efficiently across borders; 
accelerate  space  research  and  innovation  by  advancing  innovative  technologies  and 
strengthening global competitiveness; 
reinforce  industrial  readiness  and  technological  non-dependence  by  strengthening  the  EU’s 
industrial base, ensuring technological sovereignty and reducing reliance on external supply 
chains; 
encourage  space  commercialisation  within  the  EU  and  support  through  agile  procurement, 
anchor  customer  contracts,  and  increased investment in  order  to  foster  a more  dynamic  EU 
space economy; 
keep strong international cooperation as a priority in order to ensure a connected and future-
ready space ecosystem; 
reinforce  the  highly  skilled  workforce  in  line  with  the  Union  of  Skills15,  while  leveraging 
digitisation and automation to enhance productivity and efficiency. 

12 Draghi, M., ‘The future of European competitiveness’, September 2024, page 60. 
13 European Space Agency, ‘Report on the Space Economy 2024’, December 2024. 
14 COM(2025) 335. 
15 COM(2025) 90. 

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Building Block I: A Single Market for Space  

The EU space single market will be reinforced by the EU Space Act, which will simplify the regulatory 
framework  and,  provide  clarity  for  businesses  to  operate  within  the  EU’s  single  market.  This  will 
stimulate growth in relation to space safety, resilience and sustainability, which in turn will stimulate 
the space economy. The EU space sector currently has to deal with a complex and fragmented regulatory 
landscape, with multiple national requirements to navigate in the different EU Member States. Building 
on the horizontal actions to remove barriers included in the recent Single Market Strategy, the EU Space 
Act  will  establish  a  common  set  of  rules,  reduce  administrative  burdens  and  facilitate  cross-border 
operations. This will enable space operators to innovate and compete more effectively both in the single 
market and in export markets. 

Given the strategic importance of EU enlargement in the evolving geopolitical landscape, the EU should 
actively  encourage  the  gradual  integration  of  candidate  countries  into  relevant  EU  policies.  Their 
alignment with EU digital, industrial, and security standards makes them valuable partners in extending 
the  EU’s  market  reach  and  innovation  base.  Enabling  their  participation  in  EU  programmes,  and 
enhancing cooperation in standardisation and procurement, will strengthen interoperability and regional 
resilience  while  also  boosting  EU  competitiveness  and  security  by  making  the  European  space 
ecosystem wider and more integrated. 

Spectrum is a critical, finite resource for space. Access to sufficient spectrum is needed for satellites to 
operate in different regions, including EU and non-EU territories The EU space single market will be 
supported  by  the  upcoming  Digital  Network  Act  (DNA),  which  is  expected  to  ensure  common 
requirements for accessing the EU single market. 

To  further  strengthen  the  EU's  global  influence,  active  engagement  in  and  monitoring  of  pre-
standardisation and standardisation activities is essential, particularly at the international (International 
Standardisation Organisation / International Electrotechnical Commission) and global levels (private 
consortia, such as 3GPP16). Major non-EU economies, (particularly the US and China), have long seen 
an intrinsic link between technical standardisation on the one hand and their economic development 
and geopolitical ambitions17 on the other hand.  

The EU has also taken this approach through the renewed Standardisation Strategy18, with a revision 
announced  in  the  Single  Market  Strategy.  Engaging  research-performing  organisations  and 
strengthening the link between research, innovation and standardisation will be beneficial to the EU 
space sector19. The essence of the work in this area should focus on simplification of requirements and 
standardisation:  integration  of  standardisation,  interoperability,  regulations  and  safety  protocols 
providing clarity, legal certainty and predictability for businesses to operate within.  

The EU’s active role in setting standards (in coordination with EU Member States and their national 
standardisation bodies), is helping to project EU norms globally, thereby promoting EU interests and 
values, and by extension boosting the EU’s competitiveness at the global level.  

16 The 3rd Generation Partnership Project (3GPP) unites seven telecommunications standard development 
organizations (ARIB, ATIS, CCSA, ETSI, TSDSI, TTA, TTC), providing their members with a stable 
environment to produce the Reports and Specifications that define 3GPP technologies. 
17 With the ‘Standards 2035’ strategy, China aims to dominate the international standardisation landscape on 
emerging technologies. In recent years, Chinese proposals to the International Organization for Standardization 
(ISO) and to the International Electrotechnical Commission (IEC) have increased by 20% annually.  
18 COM(2022) 31. 
19 Commission Recommendation (EU) 2023/498. 

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Linked to the EU’s commitment to sustainable and resilient production in Europe, as laid out in the 
Clean  Industrial  Deal20,  sustainability  and  reusability  will  be  central  to  this  long-term  approach, 
promoting a circular space economy and the development of eco-efficient systems that reduce costs, 
lower environmental impact, and enhance productivity.  

The  EU  should  implement  a  coordinated  approach  to  public  spending,  aggregating  demand  and 
investment to achieve economies of scale and enhance its autonomy, security and resilience in space. 
This would allow the EU single market for space to effectively reduce fragmentation, foster a culture 
of  innovation  and  ensure  that  the  most  competitive  and  cutting-edge  solutions  are  developed  and 
brought to market, thus ultimately delivering very tangible benefits to EU citizens and society.  

The Commission will work with the Member States at expert level and with the market actors present 
on the supply and demand sides of space infrastructure and services on how best  to encourage joint 
investment in EU space technologies, reduce duplication of projects and spending, and encourage more 
impactful  technological  developments  delivering  benefits  to  all  EU  citizens.  This  should  be 
complemented by a significant increase in demand and anchor customer contracts (including for small 
and larger companies), supporting developments upstream and downstream while avoiding competition 
distortions. 

The emergence of a business- and innovation-friendly model should be supported at European, regional 
and  national levels  by  initiatives  such  as space  hubs that bring together  the  space,  digital  and  other 
sectors,  as  well  as  users.  Those  space  hubs  should  aim  to  foster  entrepreneurship  and  skills  while 
pursuing  synergies  with  the  digital  innovation  hubs.  To  foster  public  demand  and  public  sector 
innovation, the EU should promote the use of data, information and services from the EU space systems 
to support the development of customised solutions by industry and SMEs at regional and local levels 
through space-related innovation partnerships. 

Action box 1 
The  Commission,  relying  on  the  existing  European  and  national  standardisation  processes,  will 
promote the development of technical specifications addressing the various dimensions of the space 
economy and their adoption as EU standards by the relevant bodies.   
To reinforce the space economy the Commission, through the EU Space Act, will:  
- task the EU Space Programme Agency (EUSPA) and agree with the European Space Agency (ESA) 

on a plan to ensure seamless internal market procedures; 

- propose support measures to assist space operators in complying with EU rules and to facilitate 

capacity building for technologies; 

- support the development and the market uptake of new space traffic management services within 

the EU and in export markets; 

- pursue mutual recognition and equivalence of rules and technical assessments with third countries. 

Building Block II: Accelerating Research and Innovation  

Accelerating  research  and  innovation  (R&I)  is  essential  to  drive  the  development  of  new  space 
technologies, services and applications in order to ensure the EU’s competitiveness and autonomy in 
the space sector. Fast paced developments in the US and China have resulted in significant losses of 
market  share  in  key  areas  such  as  space  transportation,  telecommunications  and  satellite  cloud 

20 COM(2025) 85. 

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solutions21. Furthermore, the rapid progress of global space powers in emerging domains such as in-
orbit servicing, advanced use of robotics, artificial intelligence, and quantum technologies could result 
in the EU falling behind.  

The  EU  should  therefore  tap  into  its  vast  pool  of  innovative  technologies  in  its Member  States  and 
promote greater synergies between space on the one hand and defence and other industries on the other 
hand. A more ambitious approach to R&I is needed in order to convert innovations into next-generation 
capabilities and boost the EU’s industrial competitiveness in global commercial markets. This approach 
should  combine  targeted,  top-down  initiatives  with  open,  bottom-up  instruments,  using  a  range  of 
funding tools and models, such as grants, investment, procurements and prizes. Partnership mechanisms 
with private and public actors should also be explored, in line with competition law principles.  

The primary goal is to ensure autonomy in the next generation of space capabilities and services. This 
will focus on stimulating the market introduction of disruptive technologies, including but not limited 
to, quantum technologies, artificial intelligence, machine learning, blockchain, 5G and 6G, Internet of 
Things, direct to device, in-space operations and services, and launch capabilities. 

Moreover,  a  strengthened  collaborative  framework,  including  pooling  of  resources,  is  essential  to 
facilitate  seamless  interaction  and  knowledge  sharing  among  the  EU  space  sector’s  diverse 
stakeholders.  This framework  should  foster closer  cooperation  between  public  authorities,  agencies, 
industry,  academia  and  research  institutions,  enabling  them  to  pool  their  expertise,  resources,  and 
capabilities22. 

Action box 2 
In the context of the next EU R&I framework programme, the Commission will propose: 
- to reinforce support to Space R&I in the different parts, based, inter alia, on an updated Strategic 

Research and Innovation Agenda (SRIA); 

- to reinforce the dedicated  Space R&I Partnership to support the development, procurement and 

deployment of innovative space technologies across the space value chain. 

The Commission will rely on roadmaps and an updated Strategic Research and Innovation Agenda 
(SRIA) to: 
- include space-defence R&I synergies with a view to strengthening the security and resilience of EU 
satellite and space infrastructure, systems and services and reducing excessive dependence on non-
EU nations’ space capabilities; 

- plan research and innovation actions. 

Building Block III: Industrial Readiness and Technological Non-Dependence 

In  industrial  terms,  a  thriving  EU  space  economy  relies  on  a  sustainable  and  strong  industrial  base 
whose main goal is to preserve, secure and further strengthen Europe’s world-class capacity to conceive, 
develop, launch, operate and exploit the space systems the EU needs for the implementation of its public 
policies, its security and its economic growth. It is therefore imperative that such industrial base reaches 
critical size to be able to compete with international competitors who enjoy a vastly larger amount of 
public investment.  

21 Draghi, M., ‘The future of European competitiveness’, September 2024. 
22 An example is the Knowledge Centre on Earth Observation, enabling the uptake of state-of-the-art knowledge 
from Earth Observation for EU policies and better regulation. 

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In technology terms, the EU needs to ensure an adequate level of access to critical space technologies 
such as Electrical, Electronic, and Electromechanical (EEE) components, equipment and systems23.  

This  is  a  pre-condition  both  for  the  dynamic  functioning  of  the  sector  as  well  as  for  the  successful 
implementation  of  EU  space  missions,  particularly  those  with  a  security  dimension.  Hence  the  EU 
should  take  measures  in  the  framework  of  the  envisaged  EU  preference  in  public  procurement  for 
strategic sectors and technologies24 to ensure its strategic autonomy and security through a competitive 
technological industrial base driven by innovation.  

The  intensifying  geopolitical landscape  underscores the  need  to  enhance  the  resilience  of  EU  space 
value chains, which are vulnerable to a range of risks, including reliance on other non-EU countries for 
technologies.  The 
critical  raw  materials,  advanced  materials,  components,  and  equipment 
Commission’s  Observatory  for  Critical  Technologies,  established  in  2021,  monitors  these  risks  and 
provides,  in  consultation  and  coordination  with  EU  industry  and  EU  Member  States,  technology 
roadmaps to address identified gaps.  

The  Strategic  Technologies  for  Europe  Platform  (STEP),  implemented  under  11  different  Union 
programmes, provides a framework to channel investment into critical space technologies, reinforcing 
industrial resilience and innovation. However, European investment in this area is substantially lower 
than the estimated needs to reduce dependencies on critical space technologies according to technology 
roadmaps.  

Member States could make use of available Cohesion and NextGenerationEU funding. As proposed in 
the mid-term review of Cohesion policy25, managing authorities could use the opportunity, supported 
with  incentives  and  flexibilities,  to  reallocate  funds  towards  investments  in,  among  other  priorities, 
STEP objectives or resilient defence or dual use capabilities and infrastructure. When Member States 
cannot implement investments in their current recovery and resilience plans, they can consider, among 
others,  options  outlined  in  the  Commission  Communication  ‘NextGenerationEU  –  The  road  to 
2026’26, making  voluntary  contributions  to  the  development  of  components  of  the  Union  Space 
Programme  or  of  the  Union  Secure  Connectivity  Programme,  for  the  benefit  of  the  Member  State 
concerned.  These programmes  underpin  EU    satellite  systems  such  as  Galileo  (satellite navigation), 
Copernicus (Earth observation), GOVSATCOM or IRIS² (satellite communications and connectivity). 
Under the Recovery and Resilience Facility (RRF), Member States can make voluntary contributions 
to such programmes, where the contribution agreement between the Commission and the Member State 
would warrant that the Member State’s contribution will be used under these programmes for the benefit 
of the Member State concerned.  

As  of  2024,  the  EU  faces  restricted  access  or  single  source  responses  from  non-EU  countries  with 
geopolitical  risks  for  47  critical  space  technologies  identified  by  the  Joint  Task  Force  between  the 
Commission,  the  European  Space  Agency  and  the  European  Defence  Agency,  including  EEE 
components, microelectronics, and advanced materials.  

Particular attention should be paid to identifying safe levels and limiting dependencies to such levels, 
avoiding  reliance  on  non-like-minded  countries  and  ensuring  sufficient  supply  of  critical  space 
technologies.  

23 ‘European Economic Security Strategy’, JOIN(2023) 20. 
24 ‘A Competitiveness Compass for the EU’, COM(2025)30. 
25 ‘A modernised Cohesion policy: The mid-term review’, COM(2025) 163 
26 COM(2025) 310 

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Action box 3 
The  Commission  will  develop  a  long-term  plan  to  ensure  multi-source  supply  of  critical  space 
technologies:  this  will  build  on  the  Commission-ESA-EDA  joint  task  force  action  list,  including 
support to  R&I  technology  maturation,  deployment  of  multi-sourcing  value  chains  and  necessary 
adaptations (for instance upgrades). 
The Commission will further support the EU Observatory for Critical Technologies in: 
- ensuring continuous monitoring and evolution of technology trends and supply chains; 
- identifying dependencies and gaps; 
- updating and monitoring the implementation of technology roadmaps. 

Building Block IV: Supporting Space Commercialisation 

The  EU  must  support  the  commercialisation  of  its  space  industry,  because  its  competitiveness  is 
increasingly falling behind that of global players. A key opportunity lies in tapping the vital role that 
space startups, scaleups, SMEs, and mid-caps including small mid-caps can play. 

These smaller actors are often highly dynamic, bringing innovative and competitive products to market 
while  also  driving  down  costs.  They  are  thus  a  critical  complement  to  larger,  established  space 
companies and thereby help to strengthen the overall ecosystem. The EU’s space ecosystem can thus 
become more vibrant and efficient, with adequate framework conditions for creating business incentives 
to design, manufacture and operate space infrastructures and services. Better collaboration, aligned with 
EU competition rules, between established and new players must result from such business incentives. 
The EU Space Entrepreneurship initiative CASSINI has created such framework for startups in 2021-
2025 through a combination of investment capital, raising business skills and reforming procurement. 
However, a CASSINI 2.0 that caters for next-level business support needs to be engineered.  
The  EU  did  not  have  any  private  investment  funds  focused  on  space  investment  before  2019,  but 
CASSINI and InvestEU have enabled the creation of 5 venture capital (VC) funds that are fully focused 
on space investment and have contributed capital to another 11 VC funds with a broad investment scope. 
These funds mostly invest in the Seed and Series A stages, but the EU lacks investors capable of leading 
growth-size investment rounds. 
A  clear  funding  gap  persists  when  it  comes  to  the  scaleup  financing  of  high-risk,  capital  intensive 
technologies  requiring  investments  above  EUR  100  million.  The  demand  for  startup  financing  also 
remains high. Even though the European Innovation Council (EIC) Fund has become one of Europe’s 
main deep tech investors in only four years, the demand from excellent startups for EIC support cannot 
currently be met. As of 2024, the EIC has supported nearly 50 projects in the space sector spanning all 
stages of technology maturity. 

Despite a strong talent base, EU startups receive 8 to 10 times less VC than those in the US and China. 
The EU captures only 5% of global VC funding (compared with 52% for the US and 40% for China)27. 
Reinforcing support for a better functioning capital market during growth phases is therefore key to the 
EU space industry’s competitiveness. This will help to counter the trend of EU space companies being 
acquired by US firms.  

27 Draghi, M., ‘The future of European competitiveness’, September 2024, page 29. 

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The EU Startup and  Scaleup Strategy28, which was adopted in May 2025,  and the broader “Choose 
Europe” initiative focus on helping innovators, founders and investors by improving the conditions for 
startups and scaleups, enabling them to capitalise on new geopolitical opportunities and reducing the 
reasons  to  relocate  outside  the  EU.  It  sets  out  legislative,  policy  and  financial  support  measures  to 
address the regulatory and financing barriers faced by European startups and scaleups, at both EU and 
Member States level, and to address the needs of innovative companies throughout their development. 

Public authorities play an important role in providing contracts to private companies as suppliers of 
goods and services. Ensuring contracts are awarded to a diverse range of service providers, including 
well established companies, startups, scaleups, SMEs and mid-caps, can help the EU achieve its space 
objectives, to push down costs but also to drive value, innovation, and sustainability, while mitigating 
risks and promoting its priorities. 

Action box 4 
The Commission will accelerate and expand access to finance by:  
-  ensuring  private  investment  capital  becomes  available  through  a  (CASSINI)  Seed  Investment 
Facility, a Growth Investment Facility, and a Debt/ non-dilutive Financing Facility, by conducting 
a pilot test to select VC funds using the existing capacity of CASSINI Investment Facility.  

The  Commission  will  implement  all  related  actions  in  the  EU  Startup  and  Scaleup  Strategy, 
including  actions  related  to  the  European  Innovation  Council,  the  Scaleup  Europe  Fund  and  the 
European Innovation Act in support of the space sector. 
The  Commission  will  adopt  innovative  and  business  friendly  procurement  methods  to  encourage 
more  competition  and  enable  the  most  cost  effective  and  innovative  products  to  scale  up  on  the 
market. For this to work, procurement procedures need to ensure a level playing field for all economic 
operators, including new entrants, scaleups, mid-caps, in particular small mid-caps, and small and 
medium sized enterprises. 
The Commission will stimulate market growth by fostering public demand through the strategic use 
of public e-procurement, allowing for less risk averse tendering, with a combination of Onboarding 
Schemes, Marketplace, Advance Purchase, and Anchor Customer Contracts to enable rapid scaling 
up  and  gain  market  credibility  for  upstream  and  downstream  activities.  The  creation  of  Central 
Purchasing Body contracts and Dynamic Purchasing Systems are two ways to achieve this.  
The Commission will stimulate local eco-systems linking together space, digital and other sectors to 
promote space innovation, involving incubators, accelerators, fostering entrepreneurship and skills.  

Building Block V: Promoting International Cooperation and Economic Diplomacy  

The main scope of international activities is promoting, establishing, and maintaining cooperation on 
space  with  non-EU  countries  and  international  organisations  including  through  (i)  regular  bilateral 
contacts  (at  technical  level  and  in  space  dialogue  format);  (ii)  cooperation  arrangements  and 
international agreements on participation in EU  systems and programmes with countries of strategic 
importance for the EU interests and priorities.  

The  Global  Gateway  strategy  offers  the  opportunity  to  advance  partnerships,  policy  dialogues,  and 
investments with countries around the world. Under the Global Gateway, the EU will work to increase 

28 COM(2025) 270 

9 

 
 
 
 
EU investments in partner countries including in satellite connectivity and space-based services, linking 
the EU with centres of digital growth and contributing to the EU’s economic security. 

Access to markets in the EU’s partner countries is a priority to counter both hostile foreign influence 
and to promote growth and prosperity in those regions – both key to safeguarding Europe’s security. A 
strong  industrial  base,  secure  supply  chains  and  appropriate  rules  that  allow  EU  companies  to 
favourably compete against uneven or unfair competition practices are both elements that underpin the 
EU’s resilience and autonomy. 

International  cooperation  may  thus  facilitate  and  leverage  actions  that  are  needed  to  support  the 
competitiveness of the EU’s space sector. Functional cooperation on space also creates as a spillover 
effect, an opportunity to extend lasting business relations to other economic sectors and forge more 
strategic political affinities in global affairs. 

A  crucial  first  step  would  be  to  map  needs  and  possible  gaps.  Building  on  the  existing  acquis  of 
agreements  and  arrangements  with  third  countries,  a  mapping  would  help  to  gather  intelligence 
enhancing  EU  businesses'  competitiveness  and  global  reach.  In  close  cooperation  with  the  EU 
Delegations in strategic markets, an information-sharing platform can bring together  intelligence on 
upcoming  procurement  opportunities  to  support  the  EU  space  ecosystem.  This  would  benefit  EU 
companies which could secure new contracts, establish a strong presence in international markets, and 
drive growth and innovation. Similarly, the platform will also help third country organisations identify 
investment opportunities in Europe. 

Action box 5 
The Commission, through its bilateral summits and space dialogues, will propose: 
- capacity building measures to emerging space nations projecting the EU’s technical standards; 
- interoperability of its systems globally. 
The Commission, involving EU Delegations, will create a platform on procurement opportunities in 
non-EU countries. 

Building Block VI: Skilled Workforce 

A skilled workforce is a transversal enabler of the five building blocks and is the backbone of a thriving 
space economy, driving innovation and progress in a fast-evolving and technically demanding field. 
The EU faces the threat of a brain drain, however, because many talented EU space professionals are 
finding better opportunities for professional development and migrating to regions like North America, 
the Middle East, and Asia, thus jeopardising the EU’s technological and economic security.   

As announced in the EU Union of Skills Communication29, the EU will develop sector-specific skills 
and intelligence, and prioritise creating, attracting and retaining top talent by offering attractive career 
paths and opportunities for growth within the EU, as well as supporting reskilling schemes. The space-
specific skills intelligence methodology will, inter alia, rely on ongoing Erasmus Blueprints & Pact 
partnerships and will feed into the new European Skills Intelligence Observatory. 

The Union of Skills was accompanied by the launch of the STEM Education Strategic Plan, outlining 
various measures for advancing STEM education and training to increase talent across the EU. The Plan 
includes  ambitious  targets  to  boost  enrolment  in  STEM  fields  in  vocational  education  and  training 

29 COM(2025) 90. 

10 

 
 
 
 
(VET) and higher education by 2030, with a particular focus on attracting more girls and women to 
those areas.  

Advanced STEM skills are crucial for defence and aerospace capabilities. However, the EU’s STEM 
workforce  growth  lags  behind  demand,  notably  in  key  sectors  such  as  cybersecurity,  defence  and 
aerospace. Nearly four out of five SMEs in the EU struggle to find workers with the necessary skillsets, 
with  startups  and  scaleups severely  impacted,  particularly in  breakthrough technologies such as  AI, 
semi-conductors, and quantum computing. These shortages also impact the space sector, limiting the 
economic growth and stifling innovation.  

Addressing this challenge requires not only initiatives in higher education but also a proactive role from 
Vocational Education and Training (VET) providers, who are pivotal in driving applied research and 
equipping  the  workforce  with  practical  skills.  Additionally,  a  key  focus  of  the  Plan  is  thus  on 
strengthening cooperation between education, research, and businesses to improve STEM learning and 
raise awareness of career opportunities. By building closer links among these sectors, the Plan seeks to 
create synergies and facilitate knowledge transfer that can inspire and prepare students for future STEM 
careers.  

It  is  imperative  that  there  be  adequate  higher  education  curricula  and  training.  This  necessitates 
cooperation  among  all  relevant  actors.  Work  can  benefit  from  the  Pact  for  Skills  partnerships,  the 
associated Erasmus Blueprints and the successful Copernicus Academy.  In the domain of cyber, the 
EU space companies and academia could join the Industry-Academia Network of the Cybersecurity 
Skills Academy.   

Furthermore, diversity, equality and inclusion initiatives need to be promoted, tackling equity, talent 
and gender gaps30. It is also essential to tackle demographic challenges by responding to the evolving 
needs of the space economy. This requires close collaborations between academia, industry, education 
and  training  institutions  to  ensure  that  education  and  training  programmes  are  tailored  to  meet  the 
demands  of  the  sector.  One  example  of  a  current  priority  area  for  the  workforce  is  the  need  for 
cybersecurity professionals to enhance the security of EU satellite and space systems.  

However, as the space sector evolves rapidly, these priority areas are continuously evolving to keep 
pace  with  industry  developments.  High  schools,  universities,  and  VET  providers  must  therefore  be 
equipped  to  react  quickly  to  industry  needs,  providing  students  with  the  specialised  and  transversal 
skills required to succeed. A broad range of stakeholders needs to be brought together in skills eco-
systems, as it is already done for example in the Centres of Vocational Excellence model (CoVE) and 
European Universities alliances when it comes to advanced skills. 

Action box 6 
The Commission will develop a space sector-specific methodology:  
- to support the Union’s skills intelligence, including contribution to the European Skills Intelligence 

Observatory; 

- to support the EU space skills classification, including adequate coverage of the space sector in the 

European Skills and occupation classification (ESCO).  

30 Despite comprising 53.7% of tertiary students enrolled in 2022, women accounted for only 30.9% in STEM 
tertiary fields. In VET, the gap is even bigger, with women representing only 16.1% of enrolment in medium-
level VET STEM fields. 

11 

 
 
 
 
The  Commission  will  promote  cooperation  between  stakeholders,  academia  including  European 
Univeristies alliances, VET, training providers-and businesses, focusing on the development of space 
curricula, exchanges, partnerships and fellowships.  
The Commission, in cooperation with academia, VET centres and secondary education institutions, 
will:  
- support lifelong learning, upskilling and reskilling for professionals, including a Skills Guarantee 
pilot  to  support  the  reconversion  of  workers  in  sectors  undergoing  restructuring  or  at  risk  of 
unemployment, to develop further their careers in the space sector; 

- help to equip secondary education pupils, VET and tertiary education with STEM skills crucial for 

the space sector through the STEM Tech Talent Induction initiative. 

The Commission will support the mobility of researchers for space through EU instruments such as 
Marie Skłodowska-Curie Actions (MSCA), Erasmus+, Europass and Euraxess online platforms, as 
well as through exchange programmes for spaces studies across Member States. 
The Commission will advance gender equality in STEM by contributing to the STEM Education 
Strategic Plan through the introduction of a space-themed learning module in the Girls Go STEM 
initiative and the launch of a “Back to School” campaign under STEM Futures to inspire and engage 
girls from the start of the academic year. 

3.  UNDERPINNING SPACE SOLUTIONS IN SUPPORT OF EUROPE’S ECONOMY 

The rapid expansion of the global space economy makes it crucial to foster a resilient and competitive 
environment for EU space infrastructure and services is crucial. This is particularly the case given the 
EU’s current 6% share of the upstream global market and 19% share of the downstream global market31. 
The proliferation of satellite and space manufacturing facilities worldwide underscores the industry’s 
rapid commercialisation.  

Alongside this growth, satellite technologies are evolving with innovations such as software-defined 
satellites;  direct  satellite-to-device  connectivity;  quantum  communications;  and  on-board  artificial 
intelligence and machine learning. These developments not only enhance flexibility and operational 
efficiency (both in space and on the ground), but also place new demands on the supporting ground 
infrastructure.  

Several nations and private operators are creating reusable or heavy lift launch capabilities, which can 
deploy massive cargo payloads or hundreds of satellites in a single mission. As other space powers 
continue to refine the reliability of their next generation launch vehicles, launch prices will  probably 
decline  further,  thus  intensifying  competition  for  EU  launch  service  providers.  Without  significant 
support to diversify  and  strengthen  its own  launch  sector,  the  EU’s strategic  autonomy  in  access to 
space could be compromised. 

Geopolitical  tensions  are  reshaping  investment  in  space  capabilities32.  Russia’s  war  of  aggression 
against Ukraine highlights the strategic importance of space capabilities for security and defence and 
of  the  importance  of  protection  of  space  assets  including  counter  measures  for  Radio  Frequency 
Interference.  Governments  and  private  enterprises  are  investing  heavily  in  secure  communications, 
surveillance, and resilient space infrastructure in order to ensure operational continuity in times of crisis. 
Private  organisations  have  played  a  vital  role  in  maintaining  communication  and  operational 
coordination on the ground in Ukraine. This reinforces the need for the EU to enhance its own space 

31 European Space Agency, ‘Report on the Space Economy 2025’, March 2025. 
32 ‘Global Counterspace Capabilities’, Secure World Foundation, April 2025. 

12 

 
 
 
 
capabilities in support of its strategic autonomy and security, including the defence and resilience of 
Ukraine, and to ensure the safety of its satellite and space infrastructure.  

The EU will also strengthen its space derived products and services, improving the widespread uptake 
of space-based solutions by users across various sectors (including government, commercial industries 
and  research  organisations).  The  EU  can  thus  maximise  the  economic  benefits  of  space-based 
technologies, creating a ripple effect of growth and innovation that spans multiple industries. 

3.1.  INFRASTRUCTURE & MANUFACTURING 

Having manufacturing facilities and EU-based supply chains is critical for EU strategic autonomy, as 
they enable the production of space infrastructure, including access to space, spacecraft or ground-based 
systems, in accordance with EU standards, ensuring reliability, security, and an adequate degree of self-
reliance in the global space economy.  

With projections estimating around 100 000 satellite launches this decade, the EU’s space sector must 
rapidly  expand  its  satellite  manufacturing  capabilities.  Building  modern  space  infrastructure  and 
scalable constellations, requires -spacecraft production in series which can facilitate commercialisation 
and access to export markets while ensuring rapid deployment of new capacities.  

In the current geopolitical and competitiveness context, it is important for the EU to ensure leadership 
in  secure  connectivity  (IRIS2),  positioning,  navigation  and  timing  (Galileo,  EGNOS  and  Low  Earth 
Orbit PNT system), space situational awareness, in-space operations and services, very high resolution 
and  high  revisit  Earth  observation,  intelligence,  surveillance,  reconnaissance,  missile  early  warning 
systems, and robotics.  

While  public  investment  is  necessary  in  such  a  highly  strategic  and  sovereign  sector,  the  EU,  in 
cooperation  with  Member  States,  will  have  to  reinforce  and  intensify  the  single  market  framework 
conditions to enable more private investment in new manufacturing facilities and EU supply chains at 
strategic locations, ensuring closer collaboration between EU Member States for the development of 
secure satellites, launch vehicles, robotics, and ground hardware (including antennas, user terminals, 
and other critical technologies).  

Achieving  this  will  require  the  widespread  adoption  of  advanced  manufacturing,  making  use  of 
robotics, artificial intelligence, and automation to ensure smart, efficient production and to maintain 
global  competitiveness  ensuring  non-dependence.  Additionally,  the  integration  of  digital  twins, 
simulation  and  modelling,  are  key  factors  in  the  design,  testing,  and  optimisation  of  satellite  and 
spacecraft construction, as well as the planning of complex space missions. This approach is essential 
to  avoid  the  challenges  experienced  by  the  automotive  industry,  which,  despite  high  production 
volumes,  has  struggled  due  to  less  competitive  manufacturing  practices,  elevated  labour  costs,  and 
prolonged development cycles. 

To  capitalise  on  these  emerging  opportunities,  the  EU’s  commercial  space  sector  must  drive 
innovation33 and economic growth while safeguarding autonomy through the development of sovereign, 
competitive, and independent satellite and launch capabilities that respond effectively to current and 
future market demands. 

Action box 7 

33 ‘Towards a European policy for technology infrastructures – Building bridges to competitiveness’, European 
Commission (2025), and ‘EU Startup and Scaleup Strategy’, COM(2025) 270. 

13 

 
 
 
 
The Commission, together with Member States, will facilitate the expansion and modernisation of 
manufacturing and test facilities across the EU, in line with State aid rules.  
The Commission, together with Member States and ESA, will continue and intensify investments in 
next  generation  satellite  technology  (for  example,  but  not  limited  to,  software  defined  satellites, 
quantum  satellites,  commercial  navigation  satellites  and  satellite  cybersecurity),  through  a 
combination of R&D grants, public contracts and private investment. 
The Commission will set-up a CASSINI Manufacturing Accelerator offering space industry advisory 
services for optimising manufacturing processes, logistics and sourcing strategies.  

Access to Space 

European access to space is a strategic and critical element of Europe’s freedom of action in space. It 
enables  the  autonomous  and  secure  deployment  of  space-based  assets  that  support  a  wide  range  of 
economic,  social,  environmental  and  security  activities,  to  the  benefit  of  society.  Securing  an 
autonomous,  reliable  and  cost-effective  European  access  to  space  is  therefore  the  collective 
responsibility of all European public actors, alongside private efforts to reinforce the competitiveness 
and resilience of European space transportation services. 

The operational launchers developed within ESA, Ariane 6 and Vega C, will continue playing a key 
role in the coming years. New space transportation solutions under development by private actors will 
reinforce the European access to space. They bear the potential to reduce launch costs and pave the way 
towards  new  and  more  flexible  services.  All  are  needed  to  address  an  evolving  commercial  and 
institutional demand, foreseen to increase in the coming years, including for security and defence. 

The EU plays a key role in ensuring this access, by supporting the aggregation of public sector launch 
services  needs  and  enabling  a  strong,  competitive  and  resilient  launch  industry  that  can  deliver 
sustainable and future-ready services. The Commission will support consolidation of demand for launch 
services  from  various  public  actors,  to  provide  industry  with  institutional  market  perspective  and 
encourage emergence of new solutions addressing current and future needs. However, access to space 
presupposes sustainable economic activity in orbit and beyond to serve its inherent purpose.  

Fierce  global  competition  coupled  with  captive  demand  and  geopolitical  uncertainties  have 
demonstrated  the  acute  need  to  reinforce  Europe’s  autonomous,  resilient  and  competitive  space 
transportation capabilities. The European public sector is progressively moving away from the publicly 
developed launch systems model, towards a service-led and anchor-customer procurement approach. 

Europe must urgently address the growing gap in launch services for commercial satellite operators. 
European capabilities  should serve a wider range of missions, lower launch costs and strengthen its 
position in the global market, while also unlocking opportunities in emerging markets. 

Access to space and the development of launch solutions from concept to commercialisation require the 
deployment  of  a  full  set  of  instruments,  including  prizes,  grants  and  innovation  procurement 
mechanisms. 

The  Commission  and  ESA  are  exploring  options  towards  a  long-term  vision  for  access  to  space, 
facilitating collaboration, identifying opportunities for cooperation and defining concrete actions in a 
coordinated and complementary manner. 

14 

 
 
 
 
Action box 8 
The  Commission,  together  with  Member  States  and  ESA,  will  propose  a  long-term  vision  for 
European space transportation.  
In the framework on the ongoing revision of the Public Procurement Directives and in line with the 
Competitive Compass, the Commission will set conditions for promoting EU preference for access 
to space while ensuring a competitive process for the procurement of EU institutional launch services, 
including through aggregation and joint procurement.  
The Commission, together with Member States and ESA, will contribute to maintaining, securing 
and expanding capacities of ground-based infrastructure (including test and launch facilities), in order 
to enhance the overall autonomy, resilience and competitiveness of EU access to space.  
The Commission, together with Member States and ESA, will contribute to accelerating future access 
to space solutions, for instance reusability. 

Digital Infrastructure for Space  

As space systems evolve, technological innovations from digital industries such as artificial intelligence 
(AI),  machine  learning  (ML),  quantum  technologies,  cloud  and  edge  computing,  connectivity  and 
interoperability,  are  increasingly  being  adopted  in  the  space  sector.  A  shift  towards  digitisation  is 
revolutionising  the  way  that  space  missions  are  designed,  operated  and  optimised.  The  EU  must 
prioritise the development of a robust digital infrastructure to support these advances.  

The  growing  volume  of  satellite  data  further  amplifies  this  need.  It  will  require  significantly  more 
storage  capacity;  access  to  high-performance  computing  (HPC);  faster  processing  capabilities;  and 
more efficient application programming interface (API) access for data distribution and analysis. Some 
of this data is managed through traditional data centres, but an increasing share is already moving to 
cloud-based  platforms,  thus  making  possible  the  greater  scalability,  flexibility  and  real-time 
accessibility required by modern space applications. A notable effort in that regard is the Copernicus 
Data Space Ecosystem (CDSE), a European cloud platform offering storing and processing capacities 
for a wide range of applications, used by more than 380 000 registered users across the world.  

Digitising  ground  segment  infrastructure  is  critical  to  supporting  the  next  generation  of  satellites, 
including software-defined satellites (SDS) and large-scale constellations. These modern satellites are 
highly  dynamic  and  reprogrammable  and  require  flexible  real-time  communication  with  ground 
systems.  Only digital, cloud-enabled  and  virtualised  infrastructures  can  deliver these  capabilities.  A 
fully digital ground segment enables automation, rapid scalability and real-time responsiveness, which 
are all vital for managing frequent software updates, in-orbit reconfigurations and increasingly complex 
mission tasks. It also allows seamless integration with AI-driven analytics, strengthens cybersecurity 
measures,  and  ensures  interoperability  across  a  diverse  range  of  satellite  platforms.  In  this  context, 
digitising  the  ground  segment  is  not  merely  an  upgrade  but  a  fundamental  enabler  for  future  space 
systems and for meeting the demands of an evolving, data-intensive space economy.  

In addition, thanks to powerful on-board processors, signal processing can now take place directly on 
the satellite (regenerative transponder). Satellites are thus increasingly becoming nodes of the global 
information infrastructure and can become a space-based data processing network capable of computing 
vast amounts of information directly in orbit, without relying on any Earth-based infrastructure. 

To  ensure  efficient  storage,  access,  and  protection  of  the  growing  volume  of  space  data,  secure, 
sovereign and scalable cloud and edge capacity is indispensable. Much of this data is currently stored 

15 

 
 
and processed on non-EU cloud platforms. The forthcoming Cloud and AI Development Act34 should 
at least triple the EU’s data centre capacity within the next five to seven years; strengthen the availability 
and use of highly secure EU-based cloud services; and reduce external dependencies. These platforms 
should provide real-time access, scalability, and be optimised for the demands of modern space systems, 
including large-scale constellations and software-defined satellites. 

The Cloud and AI Development Act will be accompanied by a single EU-wide cloud policy for public 
administrations  and  public  procurement,  which  will  guide  public  authorities  in  their  procurement 
decisions  and  empower  them  to  leverage  their  purchasing  power  more  strategically. These  ongoing 
developments must be leveraged in order to improve the competitiveness of EU approaches to storing, 
processing and analysing data from global space data providers.  

Beyond  cloud  and  edge  computing,  EU  data  spaces  are  essential  to  enabling  trusted  and  sovereign 
sharing of satellite data between governments, research institutions, and commercial actors within clear 
governance  frameworks.  In  parallel,  data  labs  will  play  an  important  role  by  offering  secure, 
collaborative environments where researchers, developers and businesses can experiment with space 
data, train AI models and develop new applications.  

Action box 9 
The  Commission,  through  its  Cloud  and  AI  Act  and  the  ensuing  cloud  policy,  will  incentivise 
sovereign  EU  cloud  solutions  for  space  data to  reduce  reliance  on  non-EU  platforms  for  storing, 
processing, and distributing satellite data and enhance the competitiveness of EU solutions.  
In its digitisation policies and related action plans, the Commission will support the modernisation 
of  the  ground  segments  with  the  continuation  of  the  transitioning  to  digital,  cloud-enabled,  and 
virtualised  infrastructures,  including  antennas,  radio  transmitters  and  receivers,  signal  processing 
equipment, mission control systems, network links, control rooms and monitoring interfaces.  
Through its digitisation policies and related action plan and notably building upon EU AI factories, 
the Commission will establish space data spaces and labs to:  
- facilitate secure sharing of satellite data among governments, research institutions and commercial 

actors; 

-  support  the  creation  of  space  data  labs  to  provide  a  collaborative  environment  for  researchers, 
developers and businesses to experiment with data, train AI models and develop new applications.  

3.2.  SPACE SERVICES  

A significant share of growth in the global space economy will be driven by downstream space-based 
data, products and services. Beyond its economic impact, space technologies and services are essential 
for national and EU security, resilience and the safety of citizens. Building on a robust physical and 
digital infrastructure, this section explores how to optimise the utilisation of space services including 
Earth Observation, Navigation, Communications, and Space Situational Awareness, to effectively meet 
the evolving needs of public and private end users across multiple economic sectors.  

Satellite  connectivity,  to  be  further  augmented  through  IRIS2,  continues  to  play  an  increasingly 
important  role  in  the  convergence  of  non-terrestrial  networks  with  terrestrial  infrastructure.  The 
provision of broadband internet and backhaul services are essential to connect remote areas, as well as 
for the EU to respond effectively to emergencies, protect its digital sovereignty, and support autonomy, 

34 ‘AI Continent Action Plan’, COM(2025) 165. 

16 

 
 
 
 
competitiveness and economic growth. Satellite connectivity is included in part of the 5G standards, 
and will become natively supported in 6G, which is expected to be standardised by 2030.  

The EU Space systems Copernicus, Galileo and EGNOS are already embedded in the operations of 
nearly every key sector:  security and defence, transport, energy, agriculture, emergency management 
and humanitarian aid, environmental and climate monitoring, urban planning, among others. However, 
the  full  economic  potential  of  their  data  and  services  remains  untapped  due  to  fragmented  access, 
inconsistent  standards,    intensifying  competition  from  outside  Europe  and  regulatory  barriers. 
Furthermore, resilience of these systems is essential to guarantee the continuity of the services for the 
critical key sectors. In the context of the satellite navigation, the reinforcement of the Galileo system 
with a Low Earth Orbit (LEO) PNT component will allow the full exploitation of the PNT services for 
those key sectors. By the same token, Earth observation resilience will be augmented by a future Earth 
observation  governmental  service  providing  geo-intelligence  data.  Finally,  the  IRIS²  secure 
connectivity system will underpin the resilience of other space systems by offering a secure data link 
over multiple satellites. Most importantly, the uninterrupted operations and continuous evolution and 
upgrade  of  Copernicus  and  Galileo/EGNOS  remains  a  top  priority  within  the  subsequent  legal 
framework governing these systems. 

To address these challenges and fully leverage the benefits of space-based services, the EU must adopt 
a  strategic,  user-centric  approach  that  aligns  infrastructure,  innovation  and  policy  with  the  specific 
needs of end users. Particular attention must first be given to the area of security and defence, before 
expanding into other key areas such as energy, preparedness and crisis management, transport, critical 
infrastructure, climate and agriculture. 

Space for Security and Defence 

The strategic importance of the space sector for the broader economy is one of the primary reasons why 
many  nations  are  investing  billions  in  space  infrastructure,  integrating  military,  security,  socio-
economic,  and  technological  objectives.  Historically,  space  investments  have  been  driven  by 
government and military demand. Recent trends indicate that this dynamic is not only continuing, but 
also  intensifying,  with  notable  increases  in  military  space  investment.  Furthermore,  the  distinction 
between commercial, civil and military spending space programmes is blurred. 

In response to rising geopolitical tensions, space powers are increasingly developing government and 
military satellite constellations to support communication, missile tracking, and real-time situational 
awareness for military operations. The commercial space sector is playing an increasingly central role 
in delivering these capabilities. In the EU, however, the lack of a unified approach to public spending 
on space and defence has led to ongoing industrial fragmentation35. This, coupled with limited public 
demand,  has  contributed  to  a  capability  gap  in  key  areas  such  as  intelligence,  surveillance  and 
reconnaissance  (ISR),  leaving  the  EU  dependent  on  non-EU  providers  for  some  critical  defence 
services. Addressing these gaps will require a coordinated strategic effort between EU Member States, 
defence actors and space industry stakeholders. Mapping existing and missing capabilities is a necessary 
stage in building a more autonomous and resilient EU space and defence ecosystem. 

The  growing  involvement  of  commercial  space  actors  in  geopolitical  conflicts  has  provoked  strong 
reactions  from  spacefaring  nations.  Some  have  threatened  to  target  and  take  down  satellites.  This 
highlights the growing vulnerability of space infrastructure to kinetic and cyber-attacks, which can have 
devastating  long-term  impacts  on  the  economy36  and  civilians.  Recent  surges  in  cyber-attacks  on 

35 Draghi, M., ‘The future of European competitiveness’, September 2024, part A, page 60. 
36 World Economic Forum, ‘Global Cybersecurity Outlook 2025’, January 2025.  

17 

 
 
 
satellite systems increase the urgent need to strengthen the resilience and security of EU space assets 
against any form of attacks, including hybrid, missile & cyber-attacks by moving towards a zero-trust 
architecture for satellite and space cybersecurity and ensuring the capability of rapid replacements of 
(back-up) assets. Additionally, Radio Frequency Interference (natural, for instance solar flares, or man-
made such as jamming and spoofing) puts at risk the safety of European transport services, notably of 
aviation  and  maritime,  and  can  undermine  the  proper  and  safe  functioning  of  European  critical 
infrastructures. Interference to the detriment of EU Member States is growing since the start of Russia’s 
war in Ukraine. Actions by adverse regimes pose risk of damage to various sectors: aviation, sea and 
land transport, telecommunications, agriculture and others. EU countermeasures and investments are 
needed to protect infrastructure and numerous economic actors. 

Under  the  current  geopolitical  context  and  considering  the  military  capabilities  available,  defence 
readiness  is  impossible  without  space  readiness.  Hence,  the  development  of  resilience  systems  to 
augment both the safety and security of existing EU space systems and the uninterrupted provision of 
essential space services across civil sectors, such as transport, energy, and emergency response, will be 
a  critical  measure.  Enhanced  space  capacities,  crucial  for  the  defence  readiness  in  modern  warfare, 
would therefore comprise: 

•  geo-intelligence data  from space  with all-weather,  very-high  resolution imaging capabilities 

with a high-revisit time, ideally 30 minutes; 
•  highly secure and resilient satellite connectivity; 
• 

secure high-precision navigation positioning and timing services, which are able to withstand 
jamming and spoofing. 

Some of these space services, crucial for defence readiness, exist at national level. Some services and 
data  can  be  provided  by  commercial  providers.  However,  first  they  lack  the  scale  to  address  the 
collective  European needs;  second,  they  are  not  necessarily  interoperable, meaning  less effective  in 
scope in respect of European-level threat situations.  

It  has  therefore  become  obvious that,  for  our  resilience,  we  need  to  augment  defence  for  space  but 
equally  space  for  defence  capacities,  both  through  existing  systems  and  through  developing  new 
systems which will provide the most advanced space capabilities at the EU level. 

Action box 10 
The Commission, together with Member States, will provide a mapping of gaps in space commercial 
capabilities for defence in line with broader approach taken for defence readiness. 
The Commission, together with Member States, will foster public demand in dual-use services and 
relevant technologies by aggregation, joint procurement and anchor tenancy arrangements. 
The Commission will continue and strengthen its security-by-design policy in the development of its 
space systems and the ensuing provision of services, incorporating dual-use principles.  
The Commission, together with Member States and ESA, will explore options for augmented dual-
use  space  systems,  i.e.  the  Earth  Observation  Governmental  Service,  the  Low  Earth  Orbit 
Positioning, Navigation and Timing, IRIS², Radio Frequency Interference monitoring and the Space 
Situational Awareness. 

Space for Energy 

Satellite data is playing an increasingly vital role in the energy transition. It supports renewable energy 
planning  by  forecasting  solar  and  wind  production,  optimising  site  selection,  and  monitoring 

18 

 
 
 
infrastructure  performance.  For  instance,  Copernicus  data  is  used  by  operators  across  the  EU  to 
anticipate  supply  disruptions  and  manage  grid  balancing  in  the  face  of  climate-related  risks. 
Connectivity solutions based on IRIS² will be assessed for energy infrastructures (e.g. smart grids) and 
other  critical  infrastructure.  The  International  Energy  Agency  advises  that  satellite  data  can  reduce 
planning costs for renewable infrastructure by up to 50%37. As Europe accelerates its shift towards clean 
energy, harnessing the full potential of satellite services will be critical to ensuring resilience, efficiency 
and sustainability in the energy sector. 

Space for Preparedness and Crisis Management 

Space-based technologies are fundamental to strengthening the EU’s crisis preparedness and response 
capabilities.  The  EU  Preparedness  Union  Strategy  emphasises  that  services  such  as  Copernicus 
Emergency Management Service and Galileo provide real-time situational awareness, early warnings 
and reliable communication when terrestrial networks fail. These capabilities are indispensable when 
coordinating emergency operations, supporting civil protection, including by ensuring timely access to 
space-based early warning information to disseminate directly alert messages to the population, and 
mitigating the impacts of natural and man-made disasters.  

For  instance,  the  deployment  of  IRIS²  will  support  the  establishment  of  the  European  Critical 
Communication System (EUCCS) to deliver mission critical communication for public authorities in 
charge  of  security  and  safety  across  the  EU  and  Schengen  area.  IRIS²  will  be  crucial  in  expanding 
EUCCS coverage in areas without terrestrial mobile network and in enhancing its resilience in case of 
disruption caused by natural hazards or malign interference.  To further strengthen this initiative, the 
Cybersecurity  Blueprint  will  address  preparedness  and  management  of  cyber  crises  across  sectors 
including where the Space Threat Response Architecture applies, such as the need for enhancing shared 
situational awareness between Member States and EU entities.  

Space for Transport  

The  EU  is  leading  in  the  coupling  of  transport  and  space.  Operational  meteorology,  positioning, 
navigation, and timing, and secure connectivity, are essential systems for all transport modes from civil 
aviation  (e.g.  approaches  and  choice  of  routes)  to  maritime  (connected/automated  vessels),  road 
(autonomous vehicles) and rail (European Rail Traffic Management System, ERTMS). The Industrial 
Action Plan for the European Automotive Sector  calls for automotive software and equipment to be 
designed  to  use  space-based  data  and  services  for  navigation,  high-precision  positioning,  Earth 
observation and secure connectivity (as provided by the EU systems Galileo/EGNOS, Copernicus and, 
soon  IRIS²  respectively).  IRIS²  will  be  included  in  the  transport  domain  master  plans  for  aviation, 
maritime, and railway.  

The critical role of space services in transport requires such systems to be protected from natural risks 
and other threats. The EU will therefore develop solutions for Radio Frequency Interference monitoring 
that will generate reports and maps by processing data from various sources, including open data, on-
ground  sensors  and  satellites  (commercial  and  EU-owned)  to  timely  warn  user  communities  of  the 
impact on PNT signals. In addition, the EU will reinforce the resilience and robustness of its space 
systems and services with the introduction of a complementary component operating in Low Earth Orbit 
(LEO-PNT) capable to providing PNT services with much better resistance against interference and 
therefore of direct benefit to transport. By the same token, the data relay by the secure connectivity 
IRIS² system will increase the resilience of the various modes of transport and infrastructures (including 

37 International Energy Agency, ‘Renewables 2024 – Analysis and forecast to 2030”, October 2024. 

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rail, maritime, civil aviation, ports) and will support their seamless and secure functioning as critical 
infrastructures. 

Space for Critical Infrastructure 

Space  systems  provide  crucial  support  for  the  EU’s  critical  infrastructure.  Earth  observation  helps 
monitor  transport  corridors,  energy  pipelines,  and  ports  by  detecting  anomalies  and  early  signs  of 
degradation. For satellite navigation, the Galileo Greenlane application enabled efficient cross-border 
movement of essential goods during the COVID-19 pandemic. Galileo and EGNOS also enhance safety 
and efficiency in transport. Satellite communications provide continuity when ground-based systems 
are compromised.  

Operators across different sectors increasingly rely on satellite services for critical infrastructure (such 
as energy or nuclear facilities). In urban areas, satellite based Earth observation services support climate 
adaptation strategies by tracking heat islands, land-use changes, and water management challenges. The 
deployment of IRIS² will further strengthen EU’s critical infrastructure by offering resilient and secure 
connectivity,  especially  in  disconnected  or  disaster-affected  regions.  Moreover,  the  deployment  of 
IRIS2 needs to be compatible with the integration of 5G and 6G networks (TN-NTN integration), by 
coordinating  standardisation  with  3GPP,  which  is  fundamental  for  ensuring  the  interoperability, 
scalability, and security of integrated terrestrial and non-terrestrial networks. The portfolio of projects 
of the Smart Networks and Services Joint Undertaking (SNS JU), the EU initiative for 6G R&I, already 
includes a number of TN-NTN projects. 

Space for the Environment and Climate 

Earth Observation satellites are indispensable for environmental protection, climate science, resilience 
strategies  and  climate  adaptation.  They  provide  policymakers  with  accurate,  real-time  data  on 
deforestation,  air  and  water  quality,  pollution  levels,  methane  leaks,  land-use  patterns,  as  well  as 
parameters relevant for climate modelling and trend assessments. A concrete application set out in the 
Water  Resilience  Strategy38,  will  be  the  establishment  of  “one-stop-shop”  for  Earth  observation 
products relevant to water management, to bring together Copernicus water-related data, products, and 
tools, and facilitate access and use of these data.  Combined with other existing services such as  the 
European  Marine  Observation  and  Data  Network,  Destination  Earth  and  the  Digital  Twin  Ocean, 
Copernicus  provides  global  and  high-quality  services  to  assess  the  state  of  the  ocean,  supporting  a 
healthy ocean for a sustainable blue economy. Additionally, Copernicus reduces the impact of transport 
on  climate,  for  instance  investigating  contrails  formation  in  aviation.  These  insights  support  the 
development of evidence-based legislation for environmental governance, decarbonisation and climate 
change mitigation. Galileo and EGNOS enhance survey accuracy, thus enabling more efficient maritime 
shipping  or  aviation  routes,  more  accurate  weather  prediction,  biodiversity  monitoring,  and  early 
warning for climate disasters. In all, these systems are helping the EU meet its Green Deal and Clean 
Industrial Deal objectives  to support our industry to decarbonise, and to maintain global leadership in 
climate action offering adaptation solutions (for instance, broader European climate Risk Assessment 
on more granular level, modelling of adaptation scenarios) and additional capacities (for instance for 
the detection of Solar Radiation Modification). 

Space for Agriculture 

38 COM(2025) 280 

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The increasing use of space in agriculture supports  different services that enable resource efficiency 
and sustainability. Space-based precision agriculture optimises farm efficiency. Smart data will enable 
a  ‘less  is  more’  approach,  as  agriculture  could  use  less  fuel,  water  and  chemicals.  Food  and  crops 
forecasts using Earth observation are promoting food security and investment. Space-borne information 
on different environmental parameters is underpinning sustainable rural development.    

The  Vision  for  Agriculture  and  Food recognises that the integration  of  satellite technology  leads to 
better resource use, reduced input costs, and improved sustainability. Continuity and evolution of EU 
space assets such as Copernicus and Galileo will thus further foster simplification and competitiveness. 
The  introduction  of  a  LEO-PNT  component  on  Galileo  will  also  improve  the  performances  of 
navigation  high  accuracy  services,  which  are  key  for  agriculture.  Furthermore,  data-sharing 
technologies could cut red tape by providing more streamlined and automated reporting opportunities. 

Boosting Space Services and Simplification 

Further to the use cases of space in the aforementioned domains, it is imperative to promote generic 
enablers to further support the uptake of space solutions in the market in a horizontal manner. Such 
enablers range from innovation procurement systems up to quality labels. The use of satellite data and 
space  applications  can  also  contribute  to  ongoing  simplification  efforts  in  the  area  of  reporting  in 
particular. The Commission will continue exploring how to deploy all available tools to this end. 

 Action box 11 
The Commission will apply innovation procurement for space, in particular innovation procurement 
strategies for public authorities to buy space services and data, using a Dynamic Purchasing System 
(DPS) that groups the demands of public authorities and offloads heavy procurement processes from 
a local and regional level via one simple centralised approach. This will facilitate and accelerate the 
purchase of downstream space solutions that address public sector challenges while helping to create 
a larger and more significant EU demand for space data and services.  
The Commission will launch the ‘Make it with Space’ programme to help (i) the users purchasing 
space  data  and  service,  and  (ii)  EU  downstream  space  companies  in  the  final  stage  of 
commercialisation.  This initiative  will  focus on  boosting  demand  for  space  data  and  downstream 
services  in  non-space  sectors  via  a  dedicated  EU  funding  scheme  that  allows  new  users  to  test, 
evaluate and implement space-based solutions in their business processes, thus making them more 
efficient, sustainable and resilient, while avoiding competition distortions. 
The Commission will foster the integrity and quality of downstream space data and services: it will 
explore  potential  standardisation  and  the  development  of  a  quality  label  to  ensure  the  reliability, 
security and accuracy of space-based data and services, with the aim of reinforcing demand for space 
services in more sensitive areas. The integrity of space data and services for end users will take into 
account the increase in cyber threats due to changes in the geopolitical context.  
The Commission will explore solutions for the protection and safety of space systems including a 
Radio Frequency Interference monitoring system generating timely information on the impact 
on space systems in support of competent authorities. 
The  Commission  will mainstream  space  solutions  in  EU  sectoral  policies:  building  on  successful 
solutions  such  as  e-Call39  and  112,  the  EU  will  strive  to  mainstream  space  solutions  in  various 
policies, including  manufacturing  aspects (e.g.  standards,  interoperability  and user terminals)  and 
services aspects (e.g. demonstrations and pilot projects involving user communities). 

39 eCall is a system used in vehicles across the EU which automatically makes a free emergency call to 
the single European emergency number 112 if a vehicle is involved in a serious road accident. 

21 

 
 
 
The Commission will increase user uptake by facilitating collaboration with national administrations 
via  National  Collaboration  Programmes  and  promoting  the  integration  of  Copernicus  data  into 
decision-making processes to maximise the benefits of Copernicus services for national policies and 
to reduce administrative burden, particularly in areas such as climate change, atmosphere, marine 
and land environments. 

3.3.  CAPTURING THE IN-SPACE ECONOMY  

By  virtue  of  Article  189  TFEU,  the  EU  can  develop  policies  and  strategies  in  the  field  of  space  to 
promote cooperation, technological advancement and the peaceful use of outer space. Space activities 
often  require  multinational  and  multi-stakeholder  cooperation.  The  EU  can  thus  (i)  encourage  and 
support the collaborative approach inherent in space economy activities, including orbital activities and 
beyond, and  (ii)  integrate and  coordinate  space  activities  between  Member  States,  thereby  reducing 
duplication of effort and enhancing overall efficiency and effectiveness in space-related endeavours.  

The in-space economy can broadly be divided into two key segments: the orbital economy and activities 
beyond Earth’s orbit, notably the cislunar and lunar economies. The orbital economy is currently driven 
primarily by the satellite industry promoting more sustainable practices by moving manufacturing from 
Earth  to  the  orbital  environment.  The  cislunar  and  lunar  economy  is  dedicated  to  actvities  such  as 
exploration; mining; resource extraction and use; infrastructure development; and the establishment of 
logistic and supply chains that are critical for future commercial and scientific missions. 

The scientific, strategic, military, economic, and political interests in lunar exploration have led major 
space-faring nations, particularly the US and China to invest signficantly in robotics, heavy-lift launch 
capabilities, cargo and crew, and lunar infrastructure. Both nations have consolidated their leadership 
positions by securing international partnerships and advancing their lunar research station programmes. 
Among the 55 global partners that have signed the US-led Artemis Accords there are 21 EU Member 
States, which demonstrates the growing EU and global commitment to lunar exploration. 

These international developments are reshaping the technological landscape within Earth’s orbit. Many 
technological  advancements  (e.g.  robotic  platforms,  propellant  depots,  in-space  manufacturing  and 
recycling) originated as measures to reduce launch costs and increase mission efficiency with a view to 
cislunar and planetary exploration. As sustainability has become a central concern, there has also been 
a growing drive to ensure satellite safety and move energy-consuming activities (e.g. data storage and 
processing)  off  Earth  and  into  orbit.  These  trends  are  underpinned  by  major  public  investment. 
Exploration  and  lunar  programmes  account  for  a  substantial  share  of  space  agency  budgets. 
Developments 
launch 
capabilities and on-ground operations are interconnected.  

in  satellite  communications, 

in-space  manufacturing, 

interoperability, 

In Space Operations and Services 

The ability to act in Space is an indispensable and strategic capability for the EU as a space power. In 
Space  Operations  and  Services  (ISOS)  capabilities  involve  many  areas  of  satellite  servicing  and 
logistics, which enable, for example, satellite life-extension, maintenance, repair and upgrade. ISOS 
also entails a range of emerging in-space activities, including active debris removal; in-space assembly 
and  manufacturing;  robotic  and  automated  service  platforms;  propellant  depots  and  larger  space 
infrastructure for specific applications (e.g., data centres, energy harvesting), thus connecting activities 
from low Earth orbit to cislunar space.  

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These  services  not  only  have  vast  commercial  potential  but  are  of  critical  strategic  value  for 
governments, particularly in areas such as defence and the maintenance of EU military satellite and 
space assets. These capabilities form the foundations of the future in-space economy, enhancing the 
sustainability, interoperability, resilience and safety of next-generation satellites and infrastructure. To 
safeguard its autonomy and secure its space assets, the EU must avoid dependence on non-EU space-
faring nations and invest decisively in developing its own ISOS capabilities. 

In the future, ISOS is expected to focus on key applications that have both commercial and strategic 
relevance:  satellite  inspection,  life  extension,  refuelling,  in-orbit  logistics,  maintenance,  repair,  and 
upgrades. Additional capabilities include end-of-life operations; debris removal; in-space assembly and 
manufacturing; reuse and recycling of orbital assets; and warehousing and cargo handling. 

To accelerate the development and demonstration of these services, the Commission has launched the 
ISOS4I mission in conjunction with the Member States, the EEA countries, and the European Space 
Agency.  This  pilot  aims  to  demonstrate  critical  in-space  services;  stimulate  new  commercial 
opportunities; and lay the groundwork for an adaptive service infrastructure in orbit. It is designed to 
remain operational beyond its demonstration phase so that, by 2030, ISOS4I will serve as a precursor 
to a permanent in-space servicing architecture that is fully integrated into the EU Space ecosystem and 
capable of delivering on-demand services to both commercial and institutional customers including EU 
flagship missions. 

Mastering ISOS will ultimately make it possible to deploy large, unmanned space platforms that are 
driven  by  robotics,  automation,  and  AI.  These  modular  structures  could  be  assembled  in  orbit  and 
support a wide array of services, such as solar energy generation, in-space data processing (the space 
cloud),  warehousing,  and  propellant  depots,  thus  laying  the  foundation  for  a  truly  autonomous  EU 
presence in space. 

In-Space Digital Infrastructures 

The  transmission,  storage  and  processing  of  vast  amounts  of  space  data  presents  significant 
technological and environmental challenges. Advancing in-space digitalisation in the transformation of 
the next generation space infrastructure and services will contribute to data sovereignty and increase 
the  resilience  and  adaptivity  of  the  EU  flagships.  At  the  same  time,  it  will  increase  the  scale  and 
predictability of demand (EU anchor customer) and stimulate new market generation as paving the way 
towards a more flexible and sustainable in-space ecosystem. This will in turn create new commercial 
opportunities for European actors, reinforcing the EU’s position as a sustainable space power.  

On-board satellite processing enables the automatic processing and analysis of raw data, reducing the 
downlink  volume  and  increasing  the  efficiency  and  speed  of  operations.  Disruptive  concepts  (e.g. 
distributed in-space computing, which leverages the resources of multiple satellites and enables data 
fusion via inter-satellite links) are enhancing computational capacity and system redundancy in orbit. 
Space-based data centres can become a reality in the future, but they rely on the maturation of enabling 
technologies and include cybersecurity considerations. These centres would capitalise on abundant solar 
energy  and  the  natural  advantages  of  the  space  environment,  such  as  reduced  cooling  demands. 
Supported by advances in in-orbit assembly, maintenance and in-space processing, such facilities could 
handle the intensive computational demands of both commercial and institutional applications. This 
will depend upon maturation of enabling technology (e.g., thermal management concepts, advanced 
computing built on robust low power chips like GPUs, optical links, secure communications, quantum 

23 

 
 
technologies,  cybersecurity  etc),  and  the  elaboration  of  operational  concepts,  including  possible 
prototype demonstrations. 

Mining and Resources Utilisation  

As orbital activities continue to evolve and intertwine with broader space ambitions, they mark a clear 
pivot point in the global space economy that extends beyond Earth’s orbital economy. Traditionally, 
EU  Member  States  have  primarily  engaged  with  deep  space  through  the  European  Space  Agency 
(ESA), focusing mainly on scientific missions to expand our understanding of the universe. However, 
space mining and resource use is now attracting significant interest as global space powers race to the 
Moon and deep space. 

The economic potential of space resource use is projected to generate market revenues of EUR 73-170 
billion between 2018 and 2045. End users could save an estimated EUR 54- 135 billion through reduced 
exploration costs. Technology and knowledge spillovers are valued at around EUR 2.5 billion over 50 
years. 

The Commission will support R&I preparatory activities (for instance concept studies, the development 
of scientific instruments, mechanism actuators, cooperative robotics, and sample extraction for resource 
extraction  and  use).  It  will  also  analyse  the  most  appropriate  legal  framework  means  for  resource 
extraction and use. 

Action box 12 
The  Commission  will  enhance  collaboration  on  in-space  economy  with  EU  Member  States  in 
coordination  with  ESA,  focusing  on  orbital,  cislunar  and  lunar  space  activities,  supporting  EU 
industry, research and academia. 
The Commission, in coordination with Member States and ESA, will:  
- explore options for an ISOS4I pilot mission by 2030; 
- prepare the ground for a new strategic flagship by 2035 that provides on-demand in-space services 
for maintenance, upgrade, assembly, manufacturing, repair, removal, recycling and logistics tasks 
for satellites and other objects in space; and  

- support the transformation of space infrastructure towards greater sustainability, adaptability and 

resilience. 

The Commission will contribute to the development of the next generation of space infrastructure for 
in-space services, in collaboration with like-minded partners. 
The  Commission  will  prepare  the  ground  for  and  support  maturation  of  enabling  technology  for 
demonstrators of space data centres and distributed computation in space.  
The  Commission  will  coordinate  with  Member  States  and  ESA  research  activities  for  resource 
extraction  and  utilisation  studies,  the  development  of  scientific  instruments,  cooperative  and 
interoperable robotics, building on relevant initiatives such as the Public Private Partnerships on AI, 
Data and Robotics. 

OUTLOOK 

The EU has a collection of strong assets in space science, research and technologies, systems, data and 
services, as well as state-of-the-art industrial capacities and a highly skilled workforce. Given the new 
landscape  in  the  space  economy  involving  rapid  and  disruptive  innovation,  increased  roles  of 
governmental, military actors and new space companies, these assets must now be  realigned within 
dynamic public and private partnerships that favour agility, flexibility, proactivity and adaptability. 

24 

 
 
 
Already  the  experience  provided  by  NextGenerationEU  as  applied  in  the  space  sector,  calling  for 
synergies and combining resources at EU and national level, has been instrumental in further valorising 
inclusive  engagement  of  all  space  ecosystem  stakeholders  agreeing  and  implementing  policies  and 
programmes  serving  common  objectives.  Hence,  this  new  paradigm  of  inclusive  engagement  and 
cooperation  should  be  institutionalised  through  a  Space  Team  Europe,  a  high-level  forum  bringing 
together all European space ecosystem stakeholders: Member States, the Commission, the EU Space 
Programme Agency (EUSPA), the European Space Agency (ESA), space industry, SMEs and research 
organisations.  Through this  mechanism,  the  EU  will lead  efforts  to federate  European  space-related 
excellence and capacities in a coherent and efficient manner. 

In that vein, the EU Competitiveness Compass Coordination Tool, which ensures coordination of EU 
and national policies, will include space in the selected key areas that are deemed of strategic importance 
and of interest to the EU as a whole. The Coordination Tool will aim to align industrial and research 
policies and investments at the EU and national levels with a view to promoting structural economic 
transformation, productivity, long-term growth and quality jobs as well as benefiting the Single Market.  
Space has a high inherent potential for innovation, decarbonisation and economic security. Space is a 
major enabler for the economy that generates significant public and private investment.  It is therefore 
a  key  vector  for  EU  competitiveness  and,  in  turn,  a  valid  pilot  case  sector  for  the  Competitiveness 
Coordination Tool. 

The  Commission,  upon  advice  of  the  Space  Team  Europe,  will  therefore  propose  a  specific 
methodology dedicated to space that will monitor its contribution to the EU’s competitiveness as well 
as the EU’s share of the global space economy. This will be based on the ongoing cooperation with 
ESA  on  the  first-ever  official  statistics  on  the  European  space  economy.  Such  statistics,  as  part  of 
national accounts, can provide the necessary scientific evidence to support more targeted policies on 
the EU space sector. 

The EU must decisively support commercialisation, innovation, and industrialisation of its space sector. 
This  involves  enhancing  manufacturing  autonomy,  expanding  anchor  contracts,  and  adopting 
innovation procurement models that attract private investment. Such measures will accelerate progress 
in space capabilities (including scientific missions, launch systems, satellite constellations, and space 
robotics). To transpose the above vision into tangible results the Commission will involve the Space 
Team Europe in preparing a European Space Master Plan, a roadmap towards implementation of the 
actions listed in this Communication.   

By aligning industrial development with these priorities, Europe can build a more resilient, sustainable, 
and competitive space economy on a global scale. 

Action box 13 
The Commission will establish a Space Team Europe providing advisory  contributions to the EU 
decision-making process in the space sector, notably towards preparing an EU Space Master Plan. 

The  Commission  will  develop,  as  from  2025,  a  dedicated methodology  to  monitor  the  EU  space 
sector  and  its  share  of  the  global  space  economy  as  part  of  the  EU  Competitiveness  Compass 
Coordination Tool. 

25