According to Mario Draghi’s report on the future of EU competitiveness, the global space economy reached a value of €572 billion in 2023, with an expected average annual growth rate of 9% until 2035, when it could reach €1.628 trillion.

The private sector is gaining ground across all areas of space activity: for instance, in 2023, the private company SpaceX was responsible for 98 of the 109 launches in the United States.

However, this development has not been matched by a significant opening of space markets. The sector continues to rely heavily on institutional programmes, which remain subject to access restrictions.

In March 2023, the EU’s Joint Communication on a “European Union Space Strategy for Security and Defence” identified space as a key strategic domain, stressing that space systems and services in the European Union are crucial for the functioning of society and the economy, as well as for security and defence. This view was reaffirmed in the mission letter of the Commissioner for Defence and Space, Andrius Kubilius.

In this context, the European Commission is preparing to publish, by the end of June this year, an initiative to reform the regulation of space services, introducing harmonised rules for companies operating within the European market.

The so-called EU Space Act comes at a time when the European Union is stepping up efforts towards space sovereignty in light of shifting geopolitical dynamics, notably through the ReArm Europe project, which entails an increase of over €700 billion in defence spending.

One of the central aims of the EU Space Act is to create a cohesive single market for space services in the European Union, reducing administrative burdens for companies that currently have to navigate a fragmented landscape of national regulations.

Our team is available should you require further information.