Europe's Space Economy Heats Up as Leaders Emerge

The space economy is growing in Europe, with some countries investing more than others. Italy has taken the lead among EU countries in civilian space projects, overtaking France after a significant increase in spending over the past 15 years. According to the OECD's Space Economy at a Glance report, Rome's space economy is now a strategic high-value industrial and digital ecosystem.

The report highlights that Japan has also doubled its budget for space-related activities, becoming the top spender relative to GDP among OECD countries. Luxembourg has seen impressive growth in its space spending, tripling its budget since 2010. France and Germany lead Europe's overall public investments in space, allocating €2.4 billion and €2.5 billion respectively in civilian space spending in 2025.

When it comes to military space spending, Germany is by far the top spender, with plans to invest €35 billion in space-related defence capabilities by 2030. The UK has a significant presence in the satellite industry, with 757 satellites in orbit as of June, and the largest estimated contribution came from industries relying on positioning, navigation, and timing services provided by navigation satellites.

However, Europe lags behind the US in private space investment, with only about 12.8% of global private space investment directed to European recipients in 2025. This gap is even wider when it comes to satellite launches, with the US attempting 181 orbital satellite launches last year compared to just eight in Europe.