The global space economy is entering a decisive phase of structural transformation. Rapid reductions in launch costs and the proliferation of mega-constellations of satellites are changing the space sector. The convergence of space technology with digital and defence infrastructure, coupled with the expansion of dual-use applications, is reshaping it from a specialised industrial domain into a foundational layer of economic competitiveness and geopolitical power.
Forecasts suggest that the global space economy could reach USD 1.8 trillion by 2035, growing at a significantly higher rate than global GDP. In this context, Europe’s relative position has weakened: market share has declined, budgets remain low and private capital markets remain underdeveloped.
This CEPS Task Force Report assesses not only geopolitical and competitiveness challenges, but also opportunities for the way ahead. It considers the strategic implications of reports by Enrico Letta, Mario Draghi and Sauli Niinistö, as well as the European Commission’s 2025 Communication on the Space Economy and its proposal for an EU Space Act. The report identifies a common structural diagnosis: Europe’s space ecosystem is constrained by institutional, financial and industrial fragmentation.
To read a CEPS Expert Commentary summarising the key findings of this Task Force Report, please click here.
