{"id":288894,"date":"2025-10-09T09:31:16","date_gmt":"2025-10-09T09:31:16","guid":{"rendered":"https:\/\/www.europesays.com\/us\/288894\/"},"modified":"2025-10-09T09:31:16","modified_gmt":"2025-10-09T09:31:16","slug":"defense-budgets-on-both-sides-of-the-atlantic-reshape-space-industry","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/288894\/","title":{"rendered":"Defense budgets on both sides of the Atlantic reshape space industry"},"content":{"rendered":"

WASHINGTON \u2014 A wave of defense spending in Europe and renewed military investment in the United States \u2014 driven in part by President Donald Trump\u2019s Golden Dome missile defense<\/a> program \u2014 is reshaping the commercial space industry, investors and executives said Oct.8 at a SpaceNews live event<\/a>.<\/p>\n

\u201cOur industry and the outlook for space has very significantly changed during the course of 2025,\u201d said Mark Boggett, chief executive and general partner at venture capital firm Seraphim Space. \u201cWhat has changed in 2025? I think the answer to that question is Donald Trump. He\u2019s the answer to a lot of questions at the moment.\u201d<\/p>\n

Boggett said Europe\u2019s response to shifting U.S. defense priorities has been particularly dramatic. \u201cThere\u2019s now a trillion euros of budget in that market with a very significant need to effectively wean off U.S. capability and create sovereign capability in Europe,\u201d he said. \u201cThis has created a massive tailwind. And that\u2019s the biggest driver that I\u2019m seeing at the moment.\u201d<\/p>\n

Europe\u2019s defense turn<\/strong><\/p>\n

European governments are funneling unprecedented funding into space and defense ventures, spurred by both Trump-era policy shifts and ongoing security concerns following Russia\u2019s invasion of Ukraine. Much of the new money is focused on surveillance, communications infrastructure and military space projects designed to ensure strategic autonomy.<\/p>\n

Germany alone<\/a> plans to invest about $41 billion by 2030 to build up its space capabilities, part of a continent-wide effort to treat space as a critical domain of defense.<\/p>\n

The push has opened opportunities for private capital. \u201cThere\u2019s more investors at the table,\u201d Boggett said. \u201cThere\u2019s a lot of investors now that weren\u2019t looking at defense a year ago that are now interested in this market. Dual-use is a relatively attractive way into the market.\u201d<\/p>\n

U.S. spending and the Golden Dome effect<\/p>\n

In the United States, investors say a similar surge is underway as companies position themselves for Golden Dome, the Pentagon\u2019s planned next-generation missile defense architecture that is expected to rely heavily on satellite assets.<\/p>\n

\u201cI think that\u2019s going to be a big driver for how space-based assets will be acquired, not just for Golden Dome, but how they will be acquired for other programs as well,\u201d said Kirk Konert, managing partner at AE Industrial Partners, a private equity firm with holdings in Firefly Aerospace, York Space Systems, Sierra Space, Redwire, and All.Space.<\/p>\n

Firefly, which went public earlier this year, announced this week that it plans to acquire SciTec<\/a>, a defense analytics company. The acquisition is intended to expand Firefly\u2019s footprint in national security programs, including Golden Dome.<\/p>\n

\u201cThe current environment is creating opportunities for new entrants in the commercial space sector,\u201d Konert said. \u201cIt\u2019s providing a big opportunity for our portfolio companies and investors like us.\u201d<\/p>\n

Rising appetite for defense tech<\/strong><\/p>\n

Executives said the renewed focus on defense has transformed investor sentiment. \u201cIf you rewind 18 months ago, space and defense tech wasn\u2019t one of the best ideas for institutional investors,\u201d Konert said. \u201cOver this past year \u2014 and particularly in the last six months \u2014 defense tech and space tech are among their top ideas.\u201d<\/p>\n

Falling interest rates have helped accelerate the trend, he added. \u201cYou\u2019re seeing companies in the space and defense market having access to public markets again. Earlier-stage companies are obviously beneficiaries of that, and that has created some increases in valuations.\u201d<\/p>\n

\"YouTube<\/p>\n

Theresa Condor, chief executive of Spire Global, said the shift in government priorities has been building since Russia\u2019s 2022 invasion of Ukraine, which demonstrated how commercial<\/a> space systems could support real-world military operations.<\/p>\n

\u201cIt really showed everyone what commercial space can do in this kind of scenario, whether that\u2019s related to communications or Earth observation,\u201d Condor said. She noted that anti-satellite interference such as GPS jamming is now being observed not only in Eastern Europe but also in the Middle East.<\/p>\n

Governments, she added, are increasingly interested in new forms of data collection from orbit, including radio-frequency and electronic signal monitoring. \u201cYou\u2019re seeing a lot of interest in data, in the infrastructure to create unique and new data sets, as well as to be able to analyze and understand those data sets,\u201d she said.<\/p>\n

Condor pointed to the 2025 Munich Security Conference<\/a> as a turning point, when \u201ceveryone got much more worried about having to rely on the United States.\u201d That concern, she said, has fueled a boom in so-called sovereign space systems<\/a> \u2014 satellites, ground stations and networks that nations own and operate themselves.<\/p>\n

A new supercycle<\/strong><\/p>\n

Together, these forces are fueling a global buildup in satellite communications, Earth observation, missile warning and cybersecurity capabilities \u2014 and in the process, pushing up company valuations and spurring consolidation.<\/p>\n

\u201cI think we\u2019re still in the early innings of what we\u2019re seeing as a long macro super cycle for defense tech spend and space tech spend globally,\u201d Konert said.<\/p>\n

Boggett agreed the boom is just beginning. \u201cWe\u2019re seeing a whole range of new investors involved, leading to more competition,\u201d he said. And that could set the stage for a new wave of acquisitions across the sector.<\/p>\n

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