The European space economy is undergoing rapid expansion, driven by new technologies, public investment and growing demand for satellite services. Italy, Germany and France are among the most active countries, with a value chain comprising hundreds of companies and a multi-billion-dollar market. Applications in agriculture, energy, security and communications are expanding.
There is a common thread linking SpaceX rockets, the race for space tourism and satellite miniaturisation: the space economy. This new frontier combines artificial intelligence, data management, computing and advanced materials, opening up space even to small and medium-sized enterprises.
Satellites, once a symbol of elite technology, are now accessible to a growing number of companies. Data and telecommunications are strategic assets, and increasingly they are governed “from the sky”: alongside submarine cables, there are wireless communication channels and satellite platforms that transmit information and produce high-resolution images — down to the centimetre — useful for analysing territory and, when integrated with other techniques, also for obtaining information about the subsurface.
In recent years, the space economy has ceased to be the exclusive domain of government agencies and large multinationals: it has become an industrial engine generating services, data and terrestrial applications. Its global value was estimated at around 630 billion dollars in 2023, with projections reaching 1.8 trillion by 2035. This growth also has a geopolitical dimension: the ongoing conflict in Ukraine (since 2022) has increased attention on space security and control.
In Europe, development is supported by major public programmes: the EU Space Programme 2021–2027 allocates around €14.8 billion to infrastructures such as Galileo and Copernicus and to secure communication services. The CAP (Common Agricultural Policy, which accounts for one quarter of the EU budget), starting in 2024, uses Sentinel images from the Copernicus programme for checks on subsidy applications through the Area Monitoring System.
Italy is also expanding its presence. Driven by regional policies and the restructuring of the automotive sector, many companies are converting skills and production: from Puglia to Piedmont, through Lombardy and Campania. Recent reports indicate more than 400 companies active in the Italian space supply chain, around 13,500 employees and a total turnover of several billion euros. Exports in the sector in 2023 were estimated at around €7.5 billion.
Growth is not limited to Italy. In France, the space sector includes around 1,700 companies and over 33,000 employees (INSEE, 2020), with revenues exceeding €10 billion and a strong leadership position thanks to CNES and major industrial suppliers. In 2024, Germany recorded aerospace revenues of €52 billion, up 13% year-on-year. Of this, €49 billion came from civil and military aviation, while €3 billion are attributable to the space economy, with 9,000 specialised employees. Switzerland, finally, is a niche high-value player: the government supports space activities with public investment and a highly specialised ecosystem of companies and research centres.
Public funding remains central: governments and agencies have allocated resources to research, microsatellites, launchers and downstream services, fostering the emergence of startups and strengthening SMEs. One of the most dynamic segments is Earth Observation, applied to agriculture, infrastructure, land management, energy management and insurance. Here, data must be interpreted: AI and algorithmic analysis integrate with sector-specific expertise.
New connections are also emerging between sectors: the Motor Valley integrates expertise in advanced materials; fashion and food industries explore solutions for technical clothing and space nutrition; universities and research centres experiment with materials and applications in orbit that later benefit terrestrial industry.
Across Europe, alliances are forming between large companies, universities and SMEs, revaluing manufacturing heritage and projecting it into the future. Challenges remain: attracting private capital and venture capital, scaling startups to industrial level, and strengthening specialised training. The real opportunity is to consolidate the supply chain and transform demand for space data into concrete economic value, making public momentum attractive to investors and competitive internationally.
