Europe pushes for launch independence as US and China dominate space market

The European Space Agency reports that public funding for the space sector hit €119 billion last year, split between a €75 billion upstream market focused on spacecraft and launch services and a downstream market of about €490 billion dominated by satellite communications and GNSS. Defence now drives 80 % of institutional demand, and the OECD notes that space systems support more than half of critical infrastructure in its member economies.

Private capital is projected at $11-13 billion in 2025, concentrating on mature firms and launch-intensive activities. Launch capability remains highly concentrated: by mid-2026 only 12 countries can launch, with the United States delivering 55 % of launches and China 28 % in 2025. At the International Space Summit, European officials pledged roughly €20 billion in new funding, signed 51 deals, and committed to expanding the IRIS2 satellite network, while Amazon became the biggest commercial customer of Ariane 6. The summit highlighted concerns over orbital debris, which threatens nearly $200 billion of economic activity, underscoring Europe’s need to build its own launch and manufacturing capacity.