The European Space Agency (ESA) has released its 2026 Space Economy Report, outlining recent developments shaping Europe’s space sector and positioning the document as a reference for policymakers, industry and other stakeholders.
According to ESA, the report examines European budgets, industrial competitiveness, market accessibility and demand conditions in the context of global space-sector trends. It also reviews the macroeconomic environment affecting the sector and indicators ESA says have a direct impact on industry activity.
The report includes figures and trends for 2025, covering public and private investment, launches, mass and satellites launched, and revenues across upstream and downstream parts of the space economy. ESA said the latest edition adds a specific focus on defence investment, arguing that global space budgets have shifted structurally as defence spending increases.
ESA said global public investment in space reached €119 billion in 2025, a 3% decline from 2024, which it attributed to changes in the United States defence budget and flat NASA funding. ESA said European space budgets increased 12% to €13.5 billion, marking the first double-digit growth rate in five years, driven mainly by increased national defence spending led by Germany.
In the upstream market—covering spacecraft manufacturing and launch services—ESA valued the segment at €75 billion and said 80% of institutional demand is now dominated by defence. ESA also said European prime contractors regained market share, capturing 10% globally and 65% of their accessible market.
ESA estimated the downstream market at about €490 billion in 2025, largely commercial and comprising satellite communications, Earth observation and Global Navigation Satellite System (GNSS)-related markets. The agency said GNSS services accounted for 77% of the market and that 19% of global demand for downstream products and services originated from Europe, adding that satellite data, signals and services are increasingly embedded in the broader digital economy.
On private investment, ESA said global investment in space rose 60%, driven by a 177% increase in US activity. ESA said European space ventures raised €1.4 billion in private investment, an 8% decline from 2024 but the second-highest annual total on record.
ESA said the report draws on data from multiple sources, including the Organisation for Economic Co-operation and Development (OECD), Eurostat and other space and economic data providers, including Eurospace, Novaspace and the European Space Policy Institute (ESPI).
You can read the full report here.