When thinking of space, many envision exploration missions or telescopes. Few, however, recognise the profound impact the space sector has on everyday life on Earth through satellites.
Numerous economies and public services rely on satellite data and signals, supporting sectors like transport, telecommunications, meteorology, disaster management, environmental protection, and defence. Additionally, most of Europe’s critical infrastructure—such as dams, power plants, airports, and financial systems—depends on satellite data for safe operation. Looking ahead, satellites will be crucial for enabling the Quantum Internet.
Securing Europe’s Presence Across the Space Value Chain
The EU has made significant investments in its Space Programme, including initiatives like Copernicus, Galileo, EGNOS, GOVSATCOM, and the upcoming IRIS² and Space Situational Awareness. These “upstream” investments aim to deliver tangible benefits “downstream” through companies that transform satellite data into operational services used in daily life.
However, European downstream companies face numerous challenges compared to global competitors such as Elon Musk’s Starlink. Issues include value-chain gaps, market fragmentation, limited user awareness, high entry barriers, complex procurement processes, advanced data analytics needs, restricted access to funding, and workforce shortages.
These obstacles hinder the development and adoption of new downstream services, leading to lower production volumes and higher costs for users. More critically, they threaten to undermine the EU’s upstream investments. For instance, while the EU develops its secure satellite communication programme and increasingly secured protocols, the necessary communication terminals are predominantly manufactured in the U.S. and China. This dependency not only compromises Europe’s market position but also poses risks to the security of critical government satellite communications.
A Comprehensive Strategy for Europe’s Downstream Space Sector
To safeguard its security and sovereignty, the EU must own an autonomous and reliable satellite network and a fully European value chain that transforms space data into actionable services. This dual approach is essential for empowering European companies and public administrations to harness the potential of the space economy and digital innovations.
A consistent strategy for the downstream space sector, supported by dedicated budgets and measures, is imperative. This strategy should be developed collaboratively with industry and stakeholders, aiming to enhance user uptake, industry competitiveness, and European security and autonomy by leveraging the EU Space Programme.
Space Y estimates that implementing a European industrial strategy for the downstream space sector from 2028 to 2034 would require a budget of €6 billion, allocated to address gaps in the value chain for each component of the EU Space Programme, and that could generate up to €36 billion in sectors related to the European economy.
The Role of Space Y
Space Y serves as the voice of Europe’s downstream space industry, advocating for its interests and fostering innovation. By highlighting the benefits of satellite data and services, Space Y aims to enhance competitiveness and ensure Europe’s leadership in the global space economy.
For more information, visit www.spacey.eu.com.