Space
Satellites, launches and the services they provide on Earth.
Much of the space business serves needs here on Earth. Satellites carry communications, observe weather and crops, and provide navigation signals. Rockets put them into orbit, while ground stations and software turn the signals into services customers can use. Suppliers can therefore earn money by selling components, building spacecraft under multi-year contracts or providing services throughout a satellite’s working life.
These activities are often described as upstream and downstream. Upstream covers manufacturing and launch, while downstream covers communications, navigation and observation services. A manufacturer earns from delivering equipment; an operator needs customers to use its satellite capacity. More satellites can consequently mean more orders for components and ground equipment, yet also tougher competition between the operators selling that capacity.
Market size & opportunity
ESA’s July 2026 Space Economy Report estimates that these upstream activities were worth €75 billion globally in 2025, while downstream reached approximately €490 billion, dominated by navigation-related activity. Those totals describe the wider industry. A satellite manufacturer or optical-component supplier can serve only the missions and customers that need its particular products.
Those customers include governments and commercial operators, with different plans for communications, navigation and Earth observation. Some projects involve a single spacecraft; others build networks of satellites working together. European businesses contribute through spacecraft, components, ground equipment and software.
Market outlook
The global space economy
Worldwide · US$ billion per year
- 2023Study baseline630
- 2035Forecast1,800
This 2024 study starts from a 2023 baseline and includes businesses that use space services, beyond spacecraft and launches. Because its scope and currency differ from ESA’s figures above, the totals are not directly comparable.
World Economic Forum / McKinseyForecast published
Recent progress
On 12 February 2026, the first Ariane 64 flight used four boosters to place 32 Amazon Leo satellites into low Earth orbit, according to ESA. The successful deployment gave Europe a heavier launch option, expanding the range of satellite missions it can support.
Sources
Updated
Research & reports
European tech stocks in Q3 2026
Chipmaking equipment, maritime robots, satellites, cybersecurity and RNA editing. Five developments that offer a closer look at the businesses behind European tech stocks.