Synopsis
The report, a collaboration between Boston Consulting Group (BCG) and the European Space Policy Institute (ESPI), presents a comprehensive analysis of the impact of Europe’s Mission for Space Exploration. It aims to quantify the economic, societal, and broader impacts of space exploration, contributing to the transformation of the European space ecosystem.
Key Findings and Methodology:
- Economic Impact: The study projects a significant economic impact from European space exploration, with an estimated cumulative GDP impact of at least €260 billion and the creation of around 90,000 jobs from 2025 to 2040. This includes direct, indirect, induced, and catalytic economic benefits, with a GDP multiplier effect of over 5 times the overall budget. Catalytic benefits from new space markets are anticipated to be substantial, contributing around €110 billion.
- Space Industry’s Broader Impact: In 2022, the space economy was valued at approximately $460 billion and is projected to reach $1 trillion by 2040. The industry contributes to the economy through job creation, innovation spinoffs, sustainable development goals, disaster response, and management.
- Methodology: The report uses a three-step methodology to analyze the benefits of space exploration, encompassing direct economic returns, cross-fertilization within the space industry, and broader societal advantages.
Detailed Insights:
- Direct and Indirect Benefits: Investments in space exploration are expected to yield direct GDP contributions through new employment opportunities and indirect impacts via increased business-to-business spending within the space industry’s supply chain.
- Catalytic Benefits: Space exploration is expected to unlock new markets like in-space R&D, manufacturing, edge computing, and space travel, contributing significantly to Europe’s GDP.
- Geopolitical and Security Benefits: Space exploration enhances strategic sovereignty, soft power, international partnerships, resilience, diversification of space assets, and benefits the defence and security sectors.
- Technological and Scientific Progress: Investment in space exploration fosters technological innovations and scientific advancements, leading to significant spinoffs and improvements across various industries.
- Societal Impact: Space exploration serves as an inspiration and driving force for STEM education and addresses societal challenges like climate change and strategic independence in defence and security.
- Cross-fertilization Effects: Space exploration investments positively impact other areas of the space sector, including application-specific technologies and the broader ecosystem, thereby strengthening industrial competitiveness.
- Launch and Manufacturing Advancements: Increased space exploration activities are expected to benefit the launch and manufacturing sectors, leading to enhanced efficiencies, economies of scale, and growth in revenues and job creation.
- Start-Up Ecosystem Growth: Investments in space exploration can significantly influence the growth and competitiveness of the space start-up ecosystem, with potential benefits like the development of new technologies and expansion of the market.
The report emphasizes the extensive and multifaceted impact of space exploration on Europe’s economy and society, highlighting its strategic importance. It calls for increased investment and strategic focus to harness these benefits and position Europe as a key player in the global space arena.
