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- A New Era for European Space
- Part I: The Strategic and Economic Framework
- Part II: The Upstream Sector – Building the Infrastructure of Space
- Part III: The Midstream Sector – Logistics and Operations in Orbit
- Part IV: The Downstream Sector – Data, Connectivity, and Analytics
- Charting the Trajectory for 2030 and Beyond
- Today's 10 Most Popular Science Fiction Books
- Today's 10 Most Popular Science Fiction Movies
- Today's 10 Most Popular Science Fiction Audiobooks
- Today's 10 Most Popular NASA Lego Sets
A New Era for European Space
The European and United Kingdom space economy is in the midst of a significant transformation, a period of renewal so significant it can be described as a renaissance. This evolution is marked by a strategic pivot from an era dominated by large, government-led programmes to a dynamic, commercially driven ecosystem. This “NewSpace” movement is not a passive response to global trends but a deliberate, policy-supported reconfiguration of the continent’s ambitions in orbit and beyond. Once the exclusive domain of national agencies and their prime contractors, space is rapidly becoming a vibrant marketplace populated by agile startups, private capital, and innovative business models.
The scale of this new economy is substantial and growing. The global space market is projected to reach an economic value of €1.6 trillion by 2035, and Europe is positioning itself to capture a significant share of this expansion. In 2024, the European upstream space budget, which encompasses the design, development, and manufacturing of space systems, totalled nearly €11.4 billion. In the United Kingdom, the space economy is already a powerful engine of growth, generating £18.6 billion in income and comprising 1,907 distinct organisations employing over 55,000 people. These figures underscore a sector that has achieved critical mass and is now entering a phase of accelerated commercialisation.
Key Drivers of Transformation
This continental shift is propelled by a confluence of powerful forces. First, there is a clear strategic imperative. Across the European Union and the UK, there is a growing political and economic demand for “strategic autonomy”. This involves developing sovereign capabilities in critical domains such as satellite launch, secure communications, and Earth observation to reduce reliance on international partners and safeguard national interests in an increasingly contested geopolitical landscape.
Second, a wave of technological innovation is lowering barriers to entry and enabling entirely new business models. The miniaturisation of satellites, the advent of reusable rocket technologies pioneered elsewhere, advanced manufacturing techniques like 3D printing, and the transformative power of artificial intelligence are collectively reducing the cost and complexity of accessing and utilising space.
Third, this technological progress has been met with a surge of private capital. Venture capital and private equity firms, once hesitant to invest in such a capital-intensive and long-horizon industry, are now actively funding a new generation of space entrepreneurs. This influx of investment is a clear signal of growing market confidence and the maturation of the European space sector from a publicly funded research domain into a viable commercial frontier.
Defining the European Model
While the term “NewSpace” often evokes the disruptive, purely commercial narrative of the American market, the European model is evolving with its own distinct characteristics. It is defined by a unique and deepening symbiosis between public institutions and private enterprise. This is not a simple relationship of regulator and regulated, but a collaborative partnership where public bodies act as strategic enablers, anchor customers, and co-investors.
Landmark policy initiatives, such as the European Union’s “Vision for the European Space Economy” announced in June 2025 and the United Kingdom’s 2025 Industrial Strategy, are foundational documents that actively structure and encourage this public-private collaboration. This approach provides a framework that nurtures innovation while aligning commercial activities with long-term strategic goals. The result is an ecosystem where institutional validation and early-stage contracts serve as a important de-risking mechanism for private investors. This creates a more predictable, mission-oriented growth environment. Startups that can align their commercial ambitions with national and continental strategic objectives find a supportive framework of institutional contracts and public funding, which in turn makes them more attractive to later-stage venture capital. This hybrid model, blending the agility of private enterprise with the stability of public strategy, is the defining feature of the European space renaissance.
Part I: The Strategic and Economic Framework
Section 1.1: Forging a Continental Strategy: The European Union’s Vision for Space
The 2025 Vision for the European Space Economy
In June 2025, the European Commission unveiled its “Vision for the European Space Economy,” a landmark initiative designed to establish the EU as a global leader in the sector by 2050. This strategy represents a paradigm shift, addressing the European space economy as a comprehensive ecosystem for the first time. It encompasses not only the traditional industrial base but also emerging orbital and beyond-orbital dimensions, such as in-space resource utilisation. The Vision outlines over 40 concrete actions aimed at strengthening this ecosystem, built on several key pillars.
A central component is the establishment of “Space Team Europe,” a high-level forum that includes the European Commission, the European Space Agency (ESA), the EU Agency for the Space Programme (EUSPA), and other public and private stakeholders. Its purpose is to unify fragmented national efforts, consolidate capabilities, and provide coherent strategic coordination across the Union.
To stimulate innovation and investment, the Vision calls for a suite of new financial instruments linked to the existing CASSINI initiative. These include a pilot Seed Investment Facility for early-stage concepts, a Growth Investment Facility for scaling companies, and a Debt/Non-dilutive Financing Facility to provide alternative funding pathways. This structured approach to financing is designed to address funding gaps at every stage of a startup’s life cycle.
Furthermore, the strategy introduces new monitoring and competitiveness tools. Beginning in 2025, the Commission will develop a dedicated methodology to monitor the EU’s competitiveness and its share of the global space economy, integrating these metrics into the EU Competitive Compass Coordination Tool to inform future policy.
The Role of Pan-European Institutions
The implementation of this vision relies on a network of powerful pan-European institutions, each with an evolving role in the new commercial landscape.
European Space Agency (ESA): For decades, ESA has been the engine of Europe’s space capabilities. Today, its role is transforming from a primary developer and operator of space assets to a important enabler and anchor customer for commercial ventures. ESA’s support for startups is extensive and multifaceted. The ESA Business Incubation Centre (BIC) network is the largest of its kind in Europe, providing entrepreneurs with technical expertise, business development support, and €50,000 in equity-free funding to develop their products and intellectual property. This network is embedded in local communities across the continent, connecting startups with industry, universities, and investors.
Beyond incubation, ESA offers a wide range of funding opportunities through programmes like Horizon Europe, which in 2025 has a budget of €139 million for space research across themes like space access, in-orbit servicing, and Earth observation. The ESA Business Applications and Space Solutions (BASS) programme offers funding to businesses from any sector that intend to use space technology to develop new commercial services, with applications open year-round. These initiatives demonstrate ESA’s commitment to fostering a bottom-up innovation ecosystem alongside its traditional large-scale missions.
EU Agency for the Space Programme (EUSPA): While ESA focuses on research and development, EUSPA is responsible for the operational management of the EU’s flagship space programmes and, importantly, for linking space capabilities to end-user needs. Headquartered in Prague, EUSPA’s mandate is to maximise the return on the EU’s investment in space by fostering market uptake and creating a vibrant ecosystem of downstream applications.
EUSPA plays a direct role in supporting startups through the CASSINI (Competitive Space Start-ups for Innovation) initiative. This programme provides a range of services, including matchmaking events to connect startups with investors and corporate partners, a business accelerator, and prizes and competitions designed to spur the development of innovative commercial solutions using EU space data. By focusing on the market and the user, EUSPA ensures that the vast data streams from Europe’s space assets are translated into tangible economic and societal benefits.
Flagship Programmes as Market Catalysts
The foundation of Europe’s downstream space economy rests on its world-class flagship programmes, which provide reliable, high-quality data and services free of charge. These programmes act as powerful market catalysts, creating a stable and predictable demand that startups can build businesses upon.
- Copernicus: As the world’s leading provider of “big” space data, the Copernicus Earth Observation programme supports a vast range of applications, from environmental management and climate change mitigation to civil security. The continuous stream of data from its Sentinel family of satellites fuels a thriving ecosystem of companies developing analytics and services for agriculture, insurance, infrastructure monitoring, and more.
- Galileo: Europe’s global satellite navigation system (GNSS) provides highly accurate and reliable positioning and timing information. With an accuracy of 20cm, Galileo is a game-changer for emerging industries like autonomous driving and commercial drones, and it is already enabled in over 2.5 billion smartphones worldwide. This creates immense opportunities for startups developing location-based services and applications.
- IRIS² (Infrastructure for Resilience, Interconnectivity and Security by Satellite): This upcoming secure connectivity constellation is the EU’s ambitious answer to the growing demand for secure, reliable, and global satellite communications. It is designed to serve both governmental and commercial users, protecting critical infrastructure and enabling high-speed broadband across Europe. The development and operation of IRIS² will generate significant contracts for both established players and innovative startups, particularly in areas like cybersecurity and ground segment technology.
Section 1.2: The United Kingdom’s Sovereign Ambition
The 2025 Industrial Strategy
Parallel to the EU’s continental strategy, the United Kingdom has articulated its own bold vision for space, positioning the sector as a cornerstone of its future economic and industrial policy. The government’s 2025 Industrial Strategy officially designates space as one of six “frontier industries” within the Advanced Manufacturing sector, placing it alongside aerospace, automotive, and agri-tech in terms of strategic importance.
This strategy is not merely a statement of intent; it is a focused plan to build sovereign industrial capabilities. The government has identified five priority areas for development, aiming to make the UK a leading European space exporter by 2030:
- Satellite Communications: Building on the UK’s existing strengths in this area.
- Positioning, Navigation, and Timing (PNT): Developing resilient and secure PNT services, a critical national infrastructure.
- In-orbit Servicing and Manufacturing (ISAM): Targeting the emerging market for satellite life extension, debris removal, and orbital manufacturing.
- Space Domain Awareness (SDA): Enhancing the ability to monitor and protect assets in orbit.
- Space Data Architecture: Creating the infrastructure to effectively process and exploit the vast amounts of data generated from space.
To support this vision, the government is committing up to £135 million across programmes like the National Space Innovation Programme and the Space Clusters Infrastructure Fund, designed to help UK companies scale up from research and development to full commercialisation.
The UK Space Agency (UKSA)
The UK Space Agency (UKSA) is the primary instrument for implementing this strategy. It operates with a dual mandate: catalysing private investment and delivering a strong economic return on public spending. In the 2024/25 fiscal year, the agency’s activities helped catalyse £2.2 billion in investment and revenue for the UK space sector. Simultaneously, it secured a remarkable £7.49 in direct economic return for every £1 of UK investment in the European Space Agency, demonstrating the value of continued international collaboration.
UKSA’s support for startups is structured and comprehensive. The UK Space Agency Accelerator is a national programme designed to help entrepreneurs at every stage of their journey. It offers several tailored streams:
- Explore: For early-stage innovators looking to turn an idea into a viable business.
- Leo: For ventures with a proof of concept that are ready to enter the market.
- Geo: For companies with proven market traction (around £500,000 in funding or revenue) that are ready to scale rapidly.
In addition to the accelerator, UKSA provides direct funding through initiatives like the “Unlocking Space for Business” programme, which in September 2025 awarded £1.5 million to six projects using satellite technology and AI to address challenges in climate change and transport.
The Rise of Regional Clusters
A key feature of the UK’s approach is its emphasis on fostering regional clusters of space activity, creating specialized hubs of innovation across the country rather than concentrating them in a single location. This decentralized strategy leverages local strengths and builds a resilient national ecosystem.
- Scotland: Has emerged as a European leader in small satellite manufacturing and is a focal point for the UK’s launch ambitions. The Glasgow City Region is a designated Investment Zone with a focus on space, set to receive £160 million in funding over 10 years to support infrastructure, skills, and business development. The region is home to a dense network of companies like AAC Clyde Space and launch startups Orbex and Skyrora.
- Harwell: Located in Oxfordshire, the Harwell Space Cluster is one of the most concentrated space ecosystems in Europe. It is home to over 100 space organisations, including public institutions like the RAL Space facility and a wide array of private companies, employing more than 1,600 people.
- Midlands: This region is leveraging its deep heritage in advanced manufacturing and engineering to build a strong space cluster focused on space science, Earth observation, and advanced components. The Midlands Space Cluster, a collaboration between universities and industry bodies, received a £6.5 million investment from UKSA in 2023 to coordinate and grow the region’s capabilities.
- Cornwall: Located in the southwest of England, the Cornwall Space Cluster is a hub for horizontal launch and ground segment services. It is home to Spaceport Cornwall, Europe’s first licensed horizontal launch site, and Goonhilly Earth Station, a globally significant satellite and deep space communications facility.
The development of these specialized regional hubs is a powerful strategy for cultivating deep expertise. it also creates a complex landscape for startups to navigate. While local support can be strong, scaling across the UK and into the broader European market requires engaging with multiple regional and national policies. This dynamic presents both an opportunity for focused growth and a challenge to achieving the kind of frictionless, unified market that can produce globally competitive companies. The success of the UK’s strategy will depend on how effectively these powerful regional engines can be integrated into a cohesive national and international commercial framework.
Section 1.3: The Investment Frontier: Fueling Europe’s Space Ambitions
Market Overview
The strategic ambitions of Europe and the UK are being met with an unprecedented wave of private investment, signaling a fundamental shift in the financial community’s perception of the space sector. Once viewed as the high-risk domain of governments, space is now seen as a compelling deep-tech investment theme with the potential for significant returns.
In 2024, private investment in European space ventures surged by 56% year-on-year, reaching a total of €1.5 billion. This growth is part of a global trend; worldwide venture capital funding for space tech reached $3.3 billion in the first half of 2025 alone and is on course to surpass previous annual records. A key indicator of the market’s maturation is the increasing concentration of capital in later-stage deals. In 2025, late-stage funding rounds accounted for 41.3% of all space tech venture deals, the highest percentage in a decade, suggesting that investors are backing established businesses with proven technologies and clear paths to commercialisation.
Key Venture Capital Players
A new class of specialist and deep-tech venture capital firms is leading this investment charge, providing not just capital but also important industry expertise and networks.
- Seraphim Space (UK): Based in the UK, Seraphim is arguably the world’s leading specialist investment group focused exclusively on space technology. It has supported over 130 companies from their earliest stages through to public listing, operating both a venture fund and a dedicated accelerator programme. Its influential portfolio includes prominent NewSpace companies such as ICEYE, D-Orbit, ALL.SPACE, and SatVu.
- Primo Space (Italy): As the first venture capital fund in continental Europe to focus exclusively on the space economy, Primo Space plays a pivotal role, particularly in the Italian ecosystem. It invests in seed and early-stage companies across both upstream infrastructure and downstream applications, working closely with the Italian Space Agency to support promising technology spin-offs. Its portfolio includes space logistics leader D-Orbit.
- OTB Ventures (Poland): A leading deep-tech venture capital firm based in Central Europe, OTB Ventures targets companies with unique intellectual property. While its remit is broader than just space, it has made significant investments in the sector, co-leading funding rounds for high-profile companies like Finnish SAR satellite operator ICEYE and French in-space mobility firm Exotrail.
- Other Notable Investors: The landscape is populated by a growing number of influential investors. These include major private equity and venture firms like Andera Partners, which has a dedicated aerospace practice, and pan-European networks like the European Business Angel Network (EBAN), which is important for providing seed funding. Public investment banks like France’s Bpifrance are also highly active. More recently, the NATO Innovation Fund has become a significant player, reflecting the increasing strategic importance of dual-use space technologies.
Funding Dynamics and Trends
The character of space investment is also evolving. The surge in investor appetite is being fuelled by the growing demand for defence-related technologies. Geopolitical instability and the recognition of space as a critical domain for national security have channelled significant capital towards companies with dual-use applications. In 2024 alone, over €600 million was invested in European space ventures active in security and defence markets, with more than half of these companies located in the UK and France. This trend benefits companies developing capabilities in areas like Earth observation, secure communications, and space domain awareness.
Another notable trend is the rise of debt financing, which saw a 183% year-on-year increase in 2024, reaching a record high of €121.5 million in Europe. The availability of debt is another sign of market maturation, as it indicates that some companies have developed predictable revenue streams or secured assets sufficient to be considered creditworthy, moving beyond a sole reliance on dilutive equity financing.
Part II: The Upstream Sector – Building the Infrastructure of Space
Section 2.1: The Race to Orbit: Europe’s New Generation of Launch Providers
Market Context
For decades, Europe’s sovereign access to space was synonymous with Arianespace, the world’s first commercial launch provider. At its peak, it controlled over 50% of the geostationary launch market. the rise of SpaceX and its reusable Falcon 9 rocket fundamentally disrupted the global launch landscape, introducing a new paradigm of cost and frequency that left traditional, expendable launchers struggling to compete. Delays and cost overruns associated with the development of the Ariane 6 rocket further highlighted a critical capability gap for Europe.
This disruption, combined with the explosive growth of the small satellite market, created a powerful opportunity for a new generation of launch providers. A vibrant ecosystem of startups has emerged across the continent, developing smaller, more agile “microlaunchers” designed specifically to provide dedicated, cost-effective, and frequent launch services for the hundreds of small satellites being built each year. The year 2025 is a pivotal one, with more than 20 entities globally targeting maiden flights of new launch vehicles, including a significant number from Europe and the UK. These companies represent Europe’s commercial response to the challenge of securing its own independent and competitive path to orbit.
In-Depth Company Profiles
Isar Aerospace (Germany):
Founded in 2018 as a spin-off from the Technical University of Munich, Isar Aerospace has rapidly become Europe’s best-funded private launch company. The company has raised over €400 million in private capital from prominent investors, including a €150 million financing agreement with Eldridge Industries in June 2025. Headquartered in Ottobrunn, near Munich, the company employs a diverse team of over 400 people from nearly 50 nations.
Isar Aerospace is developing the “Spectrum,” a two-stage orbital launch vehicle designed to carry payloads of up to 1,000 kg to Low Earth Orbit (LEO) and 700 kg to a Sun-Synchronous Orbit (SSO). The rocket stands 28 meters tall and is powered by nine of the company’s proprietary “Aquila” engines on its first stage and a single vacuum-optimised version on its second stage. The engines use a combination of liquid oxygen and propane, which offers a high-performing and cleaner-burning alternative to traditional kerosene. The company emphasizes a high degree of vertical integration, manufacturing its vehicles almost entirely in-house to ensure flexibility and quality control.
The company achieved a major milestone on March 30, 2025, with the first test flight of Spectrum from Andøya, Norway. While the vehicle was lost shortly after liftoff, the event marked the first vertical orbital launch attempt by a private company from continental Europe and provided invaluable data for subsequent flights. The company has already secured launch agreements with the European Space Agency and the Norwegian Space Agency, positioning it as a key future provider for European institutional and commercial missions.
Rocket Factory Augsburg (RFA) (Germany):
Another leading German contender, Rocket Factory Augsburg (RFA) was founded in 2018 as a spin-off from established space company OHB SE. RFA’s philosophy is to “build rockets just like cars,” employing an automotive-style approach to serial production and automation to dramatically reduce costs. The company has a team of over 250 professionals and has raised at least $32.9 million in disclosed funding from investors including KKR and OHB.
RFA’s launch vehicle is the “RFA ONE,” a three-stage rocket designed to deliver up to 1,300 kg to LEO. Its most significant technological innovation is the “Helix” engine, a highly efficient staged-combustion engine – a complex technology that RFA is the first European company to develop for a commercial launcher. The rocket’s third stage, named “Redshift,” is an orbital transfer vehicle (OTV) that provides a “last-mile delivery service,” capable of precisely positioning multiple satellites into different orbits during a single mission.
RFA has made significant progress toward its inaugural launch. In June 2023, it successfully completed a full-duration hot fire test of its upper stage. In January 2025, the company received its spaceflight operator license from the UK’s Civil Aviation Authority (CAA), clearing the way for a test flight from SaxaVord Spaceport in Scotland, which is targeted for 2025.
PLD Space (Spain):
Founded in 2011, PLD Space is one of the most mature microlauncher companies in Europe. Based in Elche, Spain, the company has grown to over 270 employees and has secured a total of €139 million in funding over 20 rounds, including a Series C round for $83.1 million in April 2024.
The company is developing a family of partially reusable rockets named “MIURA.” On October 7, 2023, it made history by successfully launching its suborbital demonstrator, “MIURA 1,” which became the first privately developed rocket in Europe to reach space. This successful flight validated key technologies for its larger, orbital-class vehicle, the “MIURA 5.” The MIURA 5 is a two-stage rocket designed to carry payloads of up to 540 kg into orbit, with a reusable first stage. The company is rapidly advancing its development, announcing in September 2025 the successful completion of a burst test of the rocket’s full-scale first stage booster. The inaugural orbital launch of MIURA 5 is targeted for 2026 from the Guiana Space Centre in French Guiana.
Latitude (France):
Based in Reims, France, Latitude was founded in 2019 and is developing the “Zephyr” microlauncher. With a team of nearly 200 people, the company has raised over €50 million to fund its development.
The Zephyr is a 19-meter-tall, two-stage rocket designed for the small satellite market, capable of carrying up to 200 kg to LEO. It is powered by seven of the company’s 3D-printed “Navier” engines on the first stage and one on the second, using a proven combination of liquid oxygen and kerosene (RP-1) propellants. Latitude is establishing a significant industrial footprint in Reims, with a future production plant designed to manufacture up to 50 Zephyr rockets per year. The company has secured launch sites at the Guiana Space Centre, from where its first commercial launch is planned for late 2026, and at SaxaVord Spaceport in Scotland.
Orbex (UK):
Orbex is a UK-based company founded in 2015, developing its “Prime” microlauncher from its headquarters in Forres, Scotland. The company employs over 180 people and is notable for its focus on sustainability; the Prime rocket is designed to be reusable and is powered by renewable bio-propane, a clean-burning fuel that reduces carbon emissions. The two-stage rocket is 19 meters tall and is designed to deliver payloads of up to 200 kg into orbit.
Orbex has secured significant public and private funding, including a £20 million investment from the UK Government in January 2025. the company has faced development and regulatory delays, pushing its target for a first launch from SaxaVord Spaceport back to 2026. In a July 2025 statement, the company indicated it would require a further £120 million in private funding over the next four years to achieve its goals, highlighting the significant capital challenges in the launch sector. Despite these challenges, Orbex was one of five companies pre-selected by ESA for its European Launcher Challenge, a signal of continued institutional confidence.
Skyrora (UK):
Headquartered in Scotland, Skyrora was founded in 2017 and is developing a family of launch vehicles inspired by the UK’s space heritage, particularly the Black Arrow rocket programme. The company’s flagship orbital vehicle is the “Skyrora XL,” a three-stage rocket capable of carrying 315 kg to a 500 km orbit. Skyrora has also gained attention for its development of “Ecosene,” a high-performance rocket fuel derived from unrecyclable plastic waste, underscoring its commitment to sustainability.
In August 2025, Skyrora became the first British company to be granted a launch operator license by the UK’s CAA. The license permits up to 16 launches per year of its suborbital “Skylark L” rocket from SaxaVord Spaceport. While this is a major regulatory milestone, the company has stated that an orbital launch of the Skyrora XL is not expected until 2027, as it continues development and integration testing of the vehicle’s three stages.
| Table 1: European Microlauncher Comparison (as of Q3 2025) | |||||||
|---|---|---|---|---|---|---|---|
| Company | Vehicle Name | Country | Payload to LEO (kg) | Payload to SSO (kg) | Propulsion Tech | Reusability | Target First Orbital Launch |
| Isar Aerospace | Spectrum | Germany | 1,000 | 700 | LOX / Propane | Planned for future versions | 2025 (Test Flight 1 completed) |
| Rocket Factory Augsburg | RFA ONE | Germany | 1,300 | Not Specified | LOX / Kerosene (Staged Combustion) | Planned (First Stage) | 2025 |
| PLD Space | MIURA 5 | Spain | 540 | Not Specified | LOX / Kerosene | Yes (First Stage) | 2026 |
| Latitude | Zephyr | France | 200 | Not Specified | LOX / Kerosene (RP-1) | Not specified for initial version | 2026 |
| Orbex | Prime | UK | 200 | Not Specified | LOX / Bio-propane | Yes (First Stage) | 2026 |
| Skyrora | Skyrora XL | UK | 315 | Not Specified | HTP / Kerosene | Not specified for initial version | 2027 |
Section 2.2: The Constellation Builders: Satellite Platforms and Manufacturing
Market Context
The proliferation of microlaunchers is a direct response to the surging demand for small satellites. This demand is driven by the need for more timely and granular data for a host of applications, including global connectivity, high-frequency Earth observation, and the Internet of Things (IoT). This has created a vibrant and competitive market for companies that design and manufacture the satellites themselves. The sector is characterized by two primary business models: companies that sell standardized satellite platforms (or “buses”) and components to customers who wish to operate their own missions, and companies that provide a fully integrated “satellite-as-a-service,” managing everything from design and manufacturing to launch and in-orbit operations on behalf of a client.
In-Depth Company Profiles
Open Cosmos (UK):
Founded in 2015 and headquartered at the Harwell Space Cluster in the UK, Open Cosmos has established itself as a key player in simplifying access to space. The company offers an end-to-end service that covers satellite assembly, launch, and operations, as well as a data platform that allows customers to access insights from its shared “OpenConstellation” infrastructure. This model lowers the cost and complexity for organisations to benefit from satellite data. Open Cosmos has raised a total of $63 million in funding and has grown to a team of around 200 people. The company has secured significant contracts, including building and operating nanosatellite constellations for Spanish IoT provider Sateliot and for the government of the Balearic Islands to monitor the impacts of climate change.
AAC Clyde Space (Sweden/UK):
With roots in both Sweden and Scotland, AAC Clyde Space is a publicly listed company with a long heritage in the small satellite industry. The company provides a comprehensive range of products and services, including individual satellite components, complete mission services, and space-based data delivery. Its core products are the “EPIC” family of spacecraft platforms, which are used for both its own missions and for sale to customers. Employing approximately 210 people, AAC Clyde Space is also developing its own Earth Observation constellation, named “VIREON,” to provide application-ready data services directly to end-users. The company has been active in 2025, delivering its first laser communication terminals in July and announcing the successful operation of the YMIR-1 maritime data satellite in September.
GomSpace (Denmark):
Founded in 2007, GomSpace is a Danish publicly listed company and a global leader in the manufacture of CubeSats and nanosatellite solutions. With 15 years of experience and a team of around 200 employees, the company is known for its flight-proven, standardized satellite platforms ranging from 6U to 16U in size, which allow for easy integration of third-party payloads. GomSpace has seen strong commercial momentum in 2025, announcing a product order intake of 64 million SEK for the first half of the year and signing a major contract worth €19.5 million in June to deliver 18 satellites for a European communications company.
EnduroSat (Bulgaria):
EnduroSat is a rapidly growing Bulgarian company that engineers, builds, and operates satellites for a global customer base of over 360 clients. Founded in 2015, the company has a team of over 260 space professionals and has distinguished itself with its software-defined satellite architecture and a “constellations-as-a-service” model. In a major sign of investor confidence, EnduroSat secured a €43 million funding round in May 2025, led by prominent investors including Founders Fund. This capital is earmarked to accelerate the production of its next-generation “Endurance Gen3” ESPA-class satellites and to expand its facilities in Sofia, with a target production rate of up to 60 satellites per month.
Aerospacelab (Belgium):
Founded in 2018, Belgium’s Aerospacelab is pursuing an ambitious strategy of vertical integration and mass production. The company designs and manufactures its own satellite platforms, payloads, and avionics subsystems. It is currently constructing a “Megafactory” in Charleroi, which will be one of Europe’s largest satellite production facilities with a planned annual capacity of up to 500 satellites. With a team of over 350 people, Aerospacelab has attracted significant investment to fuel its expansion, closing an extended Series B funding round of €94 million in August 2025, bringing its total capital raised to over €134 million. The company serves both commercial and institutional markets and is a prime contender for major European constellation contracts like IRIS².
SatRev (Poland):
Established in 2016, SatRev is a Polish NewSpace company that specializes in designing, manufacturing, and operating nanosatellites for Earth observation. The company, which has raised $35 million in funding, offers end-to-end services from satellite design to data acquisition and analytics. SatRev has been expanding its international partnerships, launching a joint venture in Oman to pioneer satellite manufacturing in the Middle East and delivering a ground station there in June 2025. In January 2025, it successfully launched the “BlueBON” satellite in cooperation with South Korea’s TelePIX to monitor marine ecosystems, showcasing its sovereign space capabilities.
The satellite manufacturing sector is currently experiencing a fascinating divergence in strategy. Some companies are positioning themselves as “platform providers,” focusing on the design and sale of standardized satellite buses and components. This model, exemplified by firms like GomSpace and EnduroSat, treats the satellite as a product, providing the foundational hardware for other organizations to build their missions upon. In contrast, another group is pursuing a “vertically integrated service provider” model. Companies like ICEYE and SatVu build, own, and operate their own proprietary constellations with the primary goal of selling the data and analytics generated by these assets. Here, the satellite is not the product; the data is.
A third group, including companies like Open Cosmos and AAC Clyde Space, is attempting to bridge these two approaches by offering both platforms for sale and end-to-end data services. This hybrid strategy presents a complex strategic challenge. Selling satellite platforms could potentially mean arming future competitors in the high-margin data services market. Conversely, focusing solely on data services requires enormous upfront capital to build and maintain a proprietary constellation. The long-term success of this hybrid model will be a key indicator of the future structure of the European upstream market, revealing whether the greatest value lies in building the tools or in providing the insights they generate.
Section 2.3: The Supply Chain: Advanced Components and Propulsion
Market Context
The success of satellite manufacturers and launch providers depends on a deep and innovative supply chain of advanced components and subsystems. From radiation-hardened electronics to deployable antennas and solar panels, a network of specialist firms provides the critical technologies that make space missions possible. Among the most important of these subsystems is propulsion. The ability to manoeuvre in orbit is essential for constellation deployment, collision avoidance, station-keeping, and end-of-life deorbiting. As satellites have become smaller, a need has emerged for miniaturized, efficient, and safe propulsion systems tailored to the NewSpace market.
In-Depth Company Profile
ThrustMe (France):
Founded in 2017 as a spin-off from the École Polytechnique and CNRS, ThrustMe has emerged as a European leader in in-space propulsion for small satellites. The company’s most significant innovation was to pioneer the use of iodine as a propellant for electric propulsion systems. Compared to traditional propellants like xenon gas, solid iodine is much easier and safer to handle and store, as it does not require high-pressure tanks. This simplifies satellite design and integration, reducing costs and risks, which is particularly beneficial for rideshare missions.
ThrustMe made history by performing the world’s first in-orbit demonstration of an iodine-fuelled electric propulsion system in 2019. The company now offers a complete portfolio of turnkey propulsion products that have been tested in space and delivered to clients worldwide. Its product line includes the NPT30-I2, a gridded ion thruster that offers an optimal trade-off between thrust and efficiency for orbit-raising, and the JPT150, a more powerful iodine Hall thruster designed for larger small satellites and more demanding manoeuvres. It also offers a water-based reaction control system (RCS) for fine attitude control. By providing these advanced mobility solutions, ThrustMe is a key enabler of a more sustainable and dynamic space environment.
Part III: The Midstream Sector – Logistics and Operations in Orbit
Section 3.1: The Final Mile: In-Orbit Transportation and Servicing (IOTS)
Market Context
The industrialisation of space has given rise to a new and critical “midstream” sector focused on in-orbit logistics and operations. As launch providers increasingly adopt a rideshare model – akin to a bus service to a general neighbourhood in orbit – a distinct need has emerged for a “last-mile delivery” service. This service is provided by Orbital Transfer Vehicles (OTVs), or “space tugs,” which can pick up satellites from the launcher’s drop-off point and transport them to their precise, customized operational orbits. This capability is essential for deploying satellite constellations, which require careful phasing and spacing, and it provides satellite operators with greater flexibility and efficiency than relying solely on a direct launch.
In-Depth Company Profiles
D-Orbit (Italy):
Founded in 2011, D-Orbit is a clear market leader in the space logistics and orbital transportation sector. Headquartered in Italy with offices in Portugal, the UK, and the US, the company has established a strong track record of successful missions. With a team of over 400 employees, D-Orbit has raised a total of $170 million in funding over 15 rounds, including a $109 million Series C round in November 2023.
D-Orbit’s core technology is the ION Satellite Carrier, a versatile and proprietary OTV. Since its inaugural mission in 2020, the ION platform has flown 19 commercial missions, successfully deploying 190 payloads into orbit as of June 2025. The company offers a range of services, including precision deployment for single satellites, rapid phasing for entire constellations, and an in-orbit demonstration (IOD) service where customer payloads can be hosted and operated on the ION vehicle. This comprehensive suite of services streamlines the entire mission lifecycle for satellite operators, reducing the time from launch to revenue generation by up to 85%.
Exotrail (France):
Exotrail is a French space mobility company that combines its expertise in electric propulsion with in-orbit transportation services. Founded in 2016, the company has a team of over 160 people and has raised $74.6 million in funding, including a $58 million Series B round in February 2023.
Exotrail’s OTV is the spacevan™, a vehicle that uses the company’s own high-performance electric propulsion systems to provide a wide range of in-orbit services. The first spacevan™ mission flew successfully on a SpaceX Transporter mission in November 2023, where it demonstrated both satellite deployment and hosted payload services. The company is now scaling up its operations, with its second mission, “Wings of Light,” manifested for early 2026, carrying a diverse manifest of hosted payloads and satellites for deployment. Exotrail is also developing a larger version of its OTV for missions to Geostationary Orbit (GEO), with the first GEO mission planned for 2027.
Section 3.2: A Sustainable Future: Debris Removal and In-Space Manufacturing (ISAM)
Market Context
The rapid growth of satellite deployments has brought the issue of space sustainability into sharp focus. The increasing amount of orbital debris poses a significant threat to active satellites and the long-term viability of key orbits. This has created a nascent but critical market for Active Debris Removal (ADR) and other services that can extend the life of satellites or safely deorbit them at the end of their mission. At the more futuristic end of the midstream spectrum is In-Space Servicing and Manufacturing (ISAM), which seeks to leverage the unique microgravity environment of space to produce materials, such as flawless semiconductor crystals or biological compounds, that are impossible to make on Earth.
In-Depth Company Profiles
ClearSpace (Switzerland):
Founded in 2018 as a spin-off from the Swiss Federal Institute of Technology Lausanne (EPFL), ClearSpace is a pioneer in the field of in-orbit servicing and debris removal. With a team of around 90 employees, the company has raised $33.3 million in funding to develop its technology.
ClearSpace was awarded a landmark €86.2 million contract by ESA to conduct the world’s first active debris removal mission, named ClearSpace-1. Scheduled for launch in 2028, the mission will see a robotic “chaser” spacecraft rendezvous with, capture, and safely deorbit a 112 kg piece of a Vega rocket upper stage that has been in orbit since 2013. The company is also one of two firms competing for a UK Space Agency contract to perform a national ADR mission, which aims to remove two defunct UK satellites from orbit in 2026. These missions are critical for demonstrating the technologies needed to create a sustainable orbital environment.
Space Forge (UK):
Based in Cardiff, Wales, Space Forge is a pioneering startup focused on harnessing the space environment for industrial-scale manufacturing. Founded in 2020, the company is developing the ForgeStar® platform, a small, reusable satellite designed to act as a returnable orbital factory. By leveraging the microgravity and vacuum of space, Space Forge aims to produce advanced semiconductor materials and alloys with a quality unattainable on Earth, which can then be returned for use in high-value terrestrial applications like power electronics and telecommunications.
With a team of 70, Space Forge has attracted significant investment, including a record-breaking $30 million Series A funding round for a UK space tech company in May 2025. The company achieved a major milestone in June 2025 with the successful launch of its first demonstration satellite, ForgeStar®-1, which is testing the in-space manufacturing platform and validating the company’s re-entry technologies.
Section 3.3: Beyond LEO: Cislunar and Hypersonic Ambitions
Market Context
While Low Earth Orbit is the focus of the current commercial boom, a handful of visionary European startups are already looking toward the next frontiers of the space economy. The renewed global interest in lunar exploration, driven by programmes like NASA’s Artemis, is creating the foundations of a cislunar (Earth-Moon) economy. This will require a new generation of vehicles capable of transporting cargo and, eventually, humans to lunar orbit and the Moon’s surface.
In-Depth Company Profile
The Exploration Company (Germany/France):
Founded in 2021 by a team of veteran engineers from Europe’s most complex space programmes, The Exploration Company (TEC) is developing the logistics infrastructure for the cislunar economy. With a team of nearly 300 people across Germany and France, TEC has demonstrated a culture of rapid execution and has raised an impressive $374.7 million in funding.
TEC’s flagship vehicle is Nyx, a modular, reusable, and in-orbit refillable spacecraft designed to be “launcher agnostic,” meaning it can fly on any heavy-lift rocket. Nyx is being developed in several variants: Nyx Earth for cargo missions to LEO space stations, Nyx Cislunar for transport to lunar orbit, and Nyx Moon for landings on the lunar surface. The vehicle is designed to carry large cargo loads both to and from space, with a down-mass capability of up to 3,000 kg. In June 2025, the company successfully flew its first demonstrator mission, validating key systems before communications were lost during the final descent. With its first commercial cargo missions to LEO planned from 2028, TEC is positioning itself as a key European player in the future of space exploration and logistics.
The emergence of this dedicated midstream sector – encompassing logistics, servicing, and manufacturing – is a powerful indicator of the maturation of the broader space economy. In the early decades of the space age, missions were monolithic events: a single launch for a single satellite with a single purpose. The rise of large satellite constellations created the first genuine need for a midstream service in the form of last-mile delivery, a market now being served by companies like D-Orbit and Exotrail. The success of these OTV providers is intrinsically linked to the health of the upstream satellite manufacturing sector. As the number of active satellites has grown, so too has the problem of space debris, creating the business case for Active Debris Removal firms like ClearSpace. In turn, the availability of more frequent and lower-cost launch access has made entirely new business models, such as in-space manufacturing, commercially plausible for the first time. The growth of this entire midstream layer demonstrates that the space economy is evolving beyond simple infrastructure deployment into a complex, interconnected ecosystem with sophisticated value chains – a classic hallmark of a maturing industrial sector.
Part IV: The Downstream Sector – Data, Connectivity, and Analytics
Section 4.1: Europe’s Eyes on Earth: The Earth Observation Revolution
Market Context
The downstream sector, which focuses on delivering services and applications using data from space, is the largest segment of the space economy. Within this, Earth Observation (EO) is a field where Europe holds a particularly strong position, accounting for nearly 20% of global EO revenues. This strength is built on the foundation of the Copernicus programme, which provides a wealth of high-quality data. the commercial EO sector is undergoing a revolution, driven by startups deploying constellations with novel sensing capabilities that go far beyond standard optical imagery. These new sensors, such as Synthetic Aperture Radar (SAR) and high-resolution thermal infrared, can “see” through clouds, at night, and detect phenomena invisible to the human eye. The primary challenge for these companies is no longer simply collecting data, but successfully creating new markets by translating that data into actionable intelligence for non-space industries.
In-Depth Company Profiles
ICEYE (Finland):
Founded in 2015, ICEYE has established itself as the undisputed global leader in commercial SAR satellite imaging. Operating the world’s largest SAR constellation, the Finnish company provides all-weather, day-and-night persistent monitoring capabilities. This is invaluable for a range of applications where uninterrupted visibility is critical, such as tracking illegal shipping, responding to natural disasters like floods, and providing intelligence for government and defence clients. With a global presence and over 700 employees, ICEYE has raised a total of $500 million in funding. The company continues to innovate rapidly; in March 2025, it launched its new Generation 4 satellites, which offer significantly enhanced imaging capabilities, including resolution down to 16 cm and a much wider imaging swath of up to 400 km.
SatVu (UK):
London-based SatVu, founded in 2016, is pioneering a new category of EO data: high-resolution thermal imagery from space. While thermal data has long been available from government satellites at low resolution (around 100 meters), SatVu’s constellation is designed to provide it at a resolution of 3.5 meters. This allows for the precise monitoring of heat signatures on Earth, with applications ranging from assessing the energy efficiency of individual buildings and pinpointing urban heat islands to detecting illegal gas flaring and monitoring industrial activity. The company’s first satellite, HotSat-1, was successfully launched in June 2023, and two more are planned for launch in 2025. As a portfolio company of Seraphim Space, SatVu is well-positioned to lead this emerging market segment.
Spire Global (Luxembourg/USA/UK):
Spire is a publicly listed company that operates one of the world’s largest and most diverse small satellite constellations. Rather than focusing on one type of imagery, Spire’s satellites collect a wide range of data using radio frequency (RF) technology. This includes tracking global maritime and aviation traffic, and collecting vast amounts of atmospheric data through a technique called radio occultation, which is used to improve weather forecasting. Spire provides this data and associated analytics to customers in the weather, aviation, maritime, and government sectors through an API-based subscription model. The company has a significant European presence, and in August 2025, it announced preliminary revenue for the second quarter in the range of $18 million to $19 million.
Section 4.2: The Ground Segment: Connecting Space to Earth
Market Context
A satellite’s capabilities are only as good as its connection to the ground. The exponential growth in the number of satellites in orbit has created a significant bottleneck in the ground segment. There are a limited number of ground station antennas available to communicate with these satellites, leading to data latency and operational constraints. This challenge has given rise to the “Ground-Segment-as-a-Service” (GSaaS) business model. Instead of building and operating their own expensive ground stations, satellite operators can now pay for access to a global network of antennas on a flexible, per-minute basis. This model dramatically lowers the barrier to entry and allows operators to scale their ground communications as their constellation grows.
In-Depth Company Profiles
Leaf Space (Italy):
Founded in Milan, Leaf Space is a leading provider of GSaaS solutions. The company offers satellite operators seamless connectivity through its fully owned and operated global network of 36 ground stations, which process over 23,000 satellite passes per month. Leaf Space provides a unified, cloud-based platform with smart, autonomous scheduling and transparent, all-inclusive pricing. This turnkey solution has made it a trusted partner for many of Europe’s leading NewSpace companies, including D-Orbit and EnduroSat, who rely on the Leaf Line network for their mission-critical communications. The company is continuously expanding its network, with plans to add 18 new stations between 2024 and 2026 to further enhance coverage and reduce latency.
Goonhilly Earth Station (UK):
Goonhilly represents a different model in the ground segment – the revitalization of a legacy national asset into a modern, multi-faceted commercial enterprise. Located in Cornwall, the iconic Goonhilly site has been at the heart of satellite communications since 1962. Acquired by a private company in 2014, it has been transformed to serve the modern space age. Goonhilly provides a wide array of services, including commercial satellite communications for GEO, MEO, and LEO constellations, as well as secure services for defence clients. Most notably, in 2021, Goonhilly established the world’s first private deep space communications network. By upgrading its large 30-meter and 32-meter antennas, the company now provides critical communications and tracking services for lunar and deep space missions for clients including ESA, NASA, and private lunar lander companies, positioning the UK as a key player in the emerging lunar economy.
The evolution of the downstream sector reveals a critical trend: value is rapidly migrating from the collection of raw data to the provision of sophisticated, AI-driven analytics. The central challenge for the industry, as articulated by market observers, is no longer just accessing space but finding commercial buyers for the immense volumes of data being produced. This requires a fundamental shift in business models.
Companies that succeed will be those that can effectively “translate” complex satellite data into simple, decision-ready products for non-space industries. For example, ICEYE does not just sell SAR images; it sells “Flood Insights” to an insurance company or “maritime domain awareness” to a government agency. This move up the value chain is powered by artificial intelligence and machine learning, which are essential for processing petabytes of satellite imagery and extracting meaningful patterns. The long-term winners in the downstream market will be those who master the data science, AI, and software platforms needed to turn pixels in orbit into profitable business intelligence on the ground for users who are not, and do not need to be, space experts.
Charting the Trajectory for 2030 and Beyond
Synthesis of Findings
The European and UK space startup ecosystem in 2025 is defined by a powerful convergence of strategic ambition, technological innovation, and private capital. The analysis presented in this report reveals several overarching trends that will shape the sector’s trajectory for the remainder of the decade.
First, the entire ecosystem is being propelled by a clear, top-down policy push for strategic autonomy. This provides a stable institutional market that de-risks private investment and aligns commercial development with long-term national and continental goals. Second, the upstream sector is on the cusp of a major transformation, with a new generation of private launch providers set to end Europe’s reliance on a single entity and provide dedicated access to orbit for a booming small satellite manufacturing industry. Third, the emergence of a sophisticated midstream sector – offering in-orbit logistics, servicing, and debris removal – signals the maturation of the space economy from a simple launch-and-operate model to a complex, interconnected, and more sustainable orbital ecosystem. Finally, the downstream sector is grappling with its most significant challenge: moving beyond the provision of raw data to the creation of value-added, AI-driven analytical products that can be sold into mainstream terrestrial industries.
The Interplay of Forces
The unique character of the European space renaissance lies in the dynamic interplay between public strategy and private capital. Unlike a purely market-driven ecosystem, European startups must navigate a complex landscape of national priorities, regional clusters, and pan-European institutional programmes. Success requires not only technological excellence and a sound business model but also an alignment with strategic objectives, from contributing to the IRIS² constellation to supporting national defence capabilities. This model fosters a more resilient and mission-oriented ecosystem, though it may also present challenges for startups seeking to scale rapidly across a fragmented continent. The tension between the bottom-up innovation of regional clusters and the top-down push for a unified European space market will be a defining feature of the coming years.
Future Outlook
Looking ahead to 2030, several factors will be critical for the continued success of the European and UK space sector. In the launch market, a period of consolidation is likely, as not all of the numerous microlauncher startups will succeed in reaching orbit and securing a sustainable manifest. For satellite manufacturers, the key challenge will be scaling production to meet the demands of mega-constellations while maintaining quality and driving down costs. For the entire ecosystem, the ability to secure long-term commercial and institutional contracts will be paramount for transitioning from venture-backed development to profitable operation.
Ultimately, the long-term prosperity of the European space economy will depend on its ability to bridge the gap between the space sector and the broader terrestrial economy. The companies that thrive will be those that can demonstrate a clear return on investment by using space-based assets to solve tangible problems on Earth – improving agricultural yields, making supply chains more efficient, helping insurers manage risk, and providing the data needed to combat climate change. While significant challenges remain, the evidence is clear: the European and UK space startup ecosystem has achieved critical mass and is now firmly on a trajectory for a decade of significant growth, innovation, and global impact.
| Table 2: Top 10 European SpaceTech VC Deals (2024-2025) | ||||||
|---|---|---|---|---|---|---|
| Company | Country | Sector | Funding Round | Amount (€/$) | Lead Investors | Date |
| The Exploration Company | Germany/France | Cislunar Logistics | Series B | $160 Million | Balderton Capital, Plural | Nov 2024 |
| Isar Aerospace | Germany | Launch Vehicle | Financing | €150 Million | Eldridge Industries | Jun 2025 |
| Aerospacelab | Belgium | Satellite Manufacturing | Series B (extended) | €94 Million | Not specified | Aug 2025 |
| PLD Space | Spain | Launch Vehicle | Series C | $83.1 Million | Not specified | Apr 2024 |
| Cailabs | France | Ground Segment (Optical) | Financing | €57 Million | European Investment Bank, Definvest | Sep 2025 |
| EnduroSat | Bulgaria | Satellite Manufacturing | Series A | €43 Million | Founders Fund | May 2025 |
| Space Forge | UK | In-Space Manufacturing | Series A | $30 Million | NATO Innovation Fund, World Fund | May 2025 |
| ClearSpace | Switzerland | Debris Removal | Series A | $29 Million | OTB Ventures, Swisscom | Jan 2023 |
| Pangea Aerospace | Spain | Propulsion | Series A | €23 Million | Hyperion, CDTI Innvierte, Primo Space | Mar 2025 |
| Skynopy | France | Ground Segment | Seed | €15 Million | Alven, Expansion, Omnes | Jun 2025 |
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