European space spending rose 12% on defence push

Europe’s public investment in space rose 12% to €13.5 billion last year, bucking a 3% global decline, as higher defence spending drove growth in the region, according to an ESA report reviewed by ECOnews. The shift matters for companies and investors because defence is taking a larger role in a sector tied to satellite infrastructure, security and industrial policy.

The European Space Agency’s Report on Space Economy 2026 said defence accounted for 53% of global public space budgets in 2025. Worldwide public spending on space, including civil and defence programmes, reached €119 billion, while Europe ranked behind the United States and China with an 11% share of total investment.

In Europe, civil programmes still dominate, representing 84% of the region’s space budget, but ESA said the increase was “driven mainly by the rise in the defence budget”, largely led by Germany. The report also said global defence-related space spending is expected to keep rising from 2026, with a projected increase of more than 20% in a single year, mainly because of defence programmes.

The report points to a broader military build-up in space on both sides of the Atlantic. It says Germany has announced a €35 billion investment plan for space security and defence through 2030, while France unveiled a 2025-2040 national space strategy last November that includes an additional €4.2 billion for military space activities.

ESA also said private investment in the global space sector hit a record €11.7 billion last year, up 60% from 2024, although Europe moved in the opposite direction. Private capital raised by European space companies fell 8% to €1.4 billion, across 88 deals.

Originally published at Eco.pt